Do you know what I hate young slayer?
I hate Credit Scores and so should you!
You shouldn’t hate Credit Scores because I hate them (Though, if you want me to be your cult leader I will. Grudgingly, but I will take that one for the team.)
You should hate Credit Scores because the Evil Debt Overlord (E.D.O) uses them to make you feel like a horrible person if you don’t rate well.
How many times have you heard someone brag about having a ridiculously high credit score? How many times have you wanted to punch that person in the face!
I generally laugh at people that brag about their high credit scores. I also try to counsel people that are overly concerned about having a low credit score. You see, Credit Scores are for the Poor. More accurately, Credit Scores are for the “Lower Middle Class” to the “Upper Middle Class”.
You have to ask yourself, “What are Credit Scores for, and why are they important?” There is the answer that is sold to you and then there is the true answer.
What you’ve been sold…is a false bill of goods. You’ve been told that your Credit Score is important so you can get lines of credit, loans and certain services. You’ve also been told good Credit Score will give you better interest rates on your loans and lines of credit. You’ve been sold on the idea that it’s sexy to have a good Credit Score.
All of this marketing is to cover up a simple little fact. Yes, your Credit Score includes all of those thing listed above, but your Credit Score is just one thing, a barometer. It measures how much money the agents of the E.D.O will make off of you. It’s a predatory scoring system.
Some of you maybe saying, “No Sh$t Sherlock”. But most people I’ve talked to, or laughed at, don’t seem to realize the extent of how predatory the system is. For instance, you know that having some credit history is better then no credit history. But did you know that the longer you keep a debt open while paying on time increases your score. Basically, the longer you pay the interest on the debt while keeping the debt open the better the score.
If you didn’t swear right now then you didn’t read what I just wrote or you don’t understand!
The longer you keep your debt open the longer your lender makes money off of you. The more money your lenders make off of you the higher your “Sexy” Credit Score. Paying off a loan to quickly can, in some case, hurt your Credit Score because your lender didn’t make the money they projected from you. Paying your debt earlier sure as shit won’t help your score any! Yet the same companies that are lending money are convincing you that it’s “muy importante” to have a high credit score.
Today children we are going to learn the term “Double Standard”. Can you say “Double Standard” boys and girls?
Understanding how your Credit Score is calculated is much more complicated then you would think. It isn’t a simple matter of measuring how punctual you are in paying your debts. But that’s just the tip of the ice berg.
Let’s return back to our original question. What are Credit Scores for? They are a gauge for lenders to determine if they want to loan you money.
My next question is, “Why are you borrowing money?!?”
This is where we see Credit Scores being used against those who don’t have money. You need to borrow money because you don’t have money.
We are constantly being sold on the idea that we need to buy crap. Then we are told that we should buy stuff with our credit card so we can keep our credit score up.
Again, I hope you just swore something fierce.
We are brainwashed to buy crap that we don’t need with borrowed money so other people can make money off of us. (Warning, run-on sentence approaching) If we don’t pay that money back we are then branded with a scarlet “VHR” (Very High Risk) because those same people that convinced us to buy crap we don’t need, with money we don’t have, can’t rely on making money off of us.
Should you have a good Credit Score? Unfortunately, Yes. The fact of the matter is there will be a time when you absolutely need a good rating. Your car might completely die forcing you to buy a new car. If you don’t have the cash to buy one outright you’re gonna need to borrow the money.
But you shouldn’t have a good credit score because you want to buy stuff on credit.
Realize young Debt Slayer that The Debt Slayer way is to use credit to increase your ability to make money or in emergency situations. If you need to borrow money for a home, try to buy a home with extra rooms or floors and rent them out. If you need a new car get a car that gives you the capability of making extra money. (buy a 1 ton van instead of an economy car. You can write off the car as a business expense and you can use it make money. One idea is to sell your services to bands that can’t afford to rent or buy their own van on the weekends. You move their equipment and they pay you.)
Young slayer, if you have bad credit don’t worry to much about it. Relish in the fact that you stuck it to the E.D.O for a time. You proved that you were a bad prospect for their viscous games.
You will need to start turning your credit score around however, but it’s not that difficult to do. Follow the path of the Debt Slayer Game. Create your own campaign, and if all else fails you can always check out the Advanced Tactics Course.
Now go slay some debt!