Credit scores, what a bullshit banking industry scam to keep us all wallowing in never ending revolving debt servitude.
Any system that concludes some shithead making minimum payments on 7 credit cards along with a car payment or two is a better ‘risk’ than the guy that makes no payments on anything because he has zero debt is a scam.
Sadly it’s the system we find ourselves in.
I’m another Dave Ramsey fan, mostly, I do differ in his ‘no credit card usage ever, period’ advice. I think they’re fine if you can control yourself. I can so a credit card is nothing more than a tool of convenience rather than a piece of plastic fairy dust that gives me free crap on demand. I’m guessing Ramsey’s position is based on the reality that 90% of the population can’t control themselves, in fact he cites data to back that up all the time, thus the blanket prohibition, it would complicate his simple process to start giving exceptions.
I didn’t stumble onto him until I was in my mid-fiddys, but he had instant credibility as I had been employing his principles my whole life already & knew they worked. Funny thing about him is he preaches what used to be simple everyday common sense, the kind of things our parents taught us way back when, but sadly the kind of things modern America ignores, so in today’s world his concepts seem almost novel, certainly not mainstream.
Anyway, he would tell you to ignore interest rates and pay off the lowest balance credit card first, then tackle the card with the next biggest balance using the extra money you now have from knocking out the prior debt, repeat, chewing your way up the ladder until you’ve wiped out all debts, the longer you do this the bigger and faster the snowball rolls. Doing it this way gives you small victories early on keeping you motivated as the snowball smashes through your debts one at a time.
That’s assuming you have no money in the bank. Since you have enough dough to knock out the big balance big interest one however, just get rid of it immediately even in violation of the Ramsey code of conduct, then blow the smaller one out as soon as possible. Then start stacking cash like a bandit, the bigger the buffer the better.
I’d be more concerned about the dollars in my pocket than the credit score. You only ‘need’ a ‘good credit score’ to get yourself back into debt at a slightly lower interest rate, that’s like agreeing to drink slightly diluted poison.
WHAT THE FUCK ! I have paid interest on a CC 1 time in OVER 40 YEARS and never missed a payment, I was pissed to say the least. they said it was because my usage was too high ! well I had to pay 1800 for a MRI and booked a Alaska cruise in the same month. but the fucking bill wasn't even due and hadn't even closed out for the monthly cycle yet ! man was I pissed off ! fired off a email to Experian and asked if they do loans because I would give them a good reason to lower my score after they give me a large loan ! DID I SAY I WAS REALLY PISSED OFF ? WELL I WENT AHEAD AND NOT ONLY PAID MY UNDUE BALANCE BUT MADE A PAYMENT SO I HAD A CREDIT ON MY CC NEEDLESS TO SAY I GOT MY 23 POINTS BACK PLUS A FEW !!!!
