Strong opinions, weakly held

Why credit scores irritate me

Felix Salmon lays out one of the reasons I really hate credit scores.


  1. The big reason I dislike them is that they have nothing to do with your financial situation. It’s only a score of your debt and how well you handle it.

  2. A credit score is an “I love debt” score. If you have 5 million dollars in the bank and never use a credit card and don’t have a car payment and own your home outright, your credit score is zero.

    As Jeff said, it’s not a measure of your financial situation. It is a measure of how embedded you are in credit.

    I’m a big fan of Dave Ramsey in matters related to credit, and I wish I had known his plan when I was in my early 20s. I could have saved myself a lot of heartache.

    See his 7 Baby Steps for an excellent and simple road map for how to take care of your money. He’s got a free podcast where he talks people through their financial situations which has opened my eyes to the practical ways money can be handled.

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