Fico

The credit reporting and scoring industry is an oppressive dictatorship. Want to close out high interest credit cards and switch to ones with zero interest? It sure seems like the financially astute and responsible move. Actually, it's pretty much a no-brainer. But being smart in the kingdom of the credit reporting industry will hit you where it hurts; right in the credit score. Staying debt free with no revolving debt? Good for you -- from a fiscally savvy standpoint. Bad for you -- from a credit score standpoint. Want to save 15% on that purchase at Old Navy? Or Target? Or Best Buy? Of course you do. You would be foolish not to. But it will cost you a ping on that score, making you appear risky as a borrower for being smart with your money.

I checked my credit report and credit score a few months back. The report showed that we had no unsecured debts. That we paid all our bills on time. Overall, our score was good. But it should have been excellent. What more could a lender want than someone who pays all their bills on time and has no consumer debt beyond the mortgage? Read More »