Dave Ramsey doesnt need a credit score.
He says you dont need one either.
Hes proud of the fact that he doesnt have acredit score.
If your credit score Is under 700,make these 5 moves ASAP.
Ramsey has inspired countless people to pay down debt and we love that.
But the truth is, he can afford to be credit invisible.
If youre a regular person, not having a credit score makes life a lot more costly and complicated.
So the credit bureaus often wont have enough data about you to give you a credit score.
But you dont need to carry debt to have a credit score.
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Heres why everyone whos not a multimillionaire should ignoreRamseys credit score advice.
Youll pay deposits for everything.
Forget a three- to six- monthemergency fund.
It will be difficult to get a mortgage.
Ramsey says the people who need a credit score are the ones who plan to take on more debt.
Smaller banks and credit unions are most likely to offer this option.
But be prepared to provide more documentation and for a longer approval process.
you’ve got the option to also expect to make a biggerdown payment.
This can be good if it stops you from buying too much house.
That costs you in the long run because your housing payments arent building equity.
3. Credit cards are usually the safest way to pay.
But with a debit card, theyre stealing your money.
That could leave you without cash or put you behind on bills.
That doesnt mean it’s crucial that you carry debt when you make a credit card purchase.
you’ve got the option to pay off your balance daily if you want.
Travel is challenging without a credit card.
it’s possible for you to probably check into a hotel or rent a car using your debit card.
But theyll typically put a temporary hold on whatever credit or debit account you use.
Its meant to ensure you have sufficient funds in case of damage.
If youre paying with credit, that wont be a problem as long as your card isnt maxed out.
5. Credit can be a valuable tool in an emergency.
In a perfect world, youd have an emergency fund that can carry you through any crisis.
But in the real world, an emergency fund can take several years to build.
Using credit cards to get through an emergency isnt ideal.
But in a crisis, it may be the least terrible option.
Having access to a credit card can help you avoid dangerous alternatives, likepayday loans.
No Credit Score?
The inconvenience and additional deposits are worth it if you have a serious spending problem.
But for most people, the advantages of credit far outweigh the downside.
Youll pay a refundable security deposit that will become your line of credit.
With a little discipline, access to credit wont lead to debt.
But it will make life easier and more affordable.
Robin Hartill is a certified financial planner and former senior writer at The Penny Hoarder.
(Can you sense my millennial sarcasm there?)
You know which ones were talking about: rent, utilities, cell phone bill, insurance, groceries…
