Originally Posted by mum4boys
what does that have to do with the the original topic or the fact we have chosen to go debt free? Your finances does not have anything to do with my finances nor how we choose to live our lives. As previously stated we had almost maxed out Liam's lifetime cap on our insurance. We still did not charge anything.
The topic is not about being DEBT free, it's about having a ZERO CREDIT SCORE. There is a huge difference, and I think that is what is frustrating for some of the posters. There are people here saying that they don't use credit at all, but what they're really saying is that they don't carry consumer debt. Even if you use a debit card, there is credit working in the background as the payment is processed. You don't see it, I don't see it, but this is how the whole world of finance operates as banks exchange money literally on a daily basis with a margin involved. Unless you quite literally use only paper money ALWAYS, then you use credit. If even once you use your debit card, you are utilizing credit (not your own credit, but the bank's) and you're going to have some sort of credit paper trail and score. If you've had to pay a doctor's bill over a period of time, you've used credit. If you've rented an apartment, you are using credit. Utilities... you use them and then pay for them later... credit. To say that you don't ever use credit is probably just a misunderstanding of how finance works. I don't think anyone is being deliberately obtuse. I'm sure there are people who only use cash, but somewhere behind the scenes, there is usually credit in operation.
And I wanted to add that I don't believe that Dave Ramsey has a zero credit score. Secondly, he's rich enough because he peddles others' ideas (his entire premise is based on Larry Burkett, from Christian Financial Concepts, who is now dead and can't sue him) and doesn't need credit like most people. He may not use credit, but he has in the past... he's got a score of some sort, I'm sure.
ETA: We are debt-free and have never paid interest in all of our years for anything but our mortgage. We use our credit card for EVERYTHING and have never failed to pay it off every single month... and we are in our 40's and 50's, using credit for 25-35 years. We have excellent credit scores. I'm truly a believer in using credit wisely and to your advantage (and have been very successful with that philosophy), and while that doesn't work for everyone, it doesn't make me a "user" of the system and I'm not "making prices higher for everyone else", as one person implied. It makes me financially healthy. Everyone needs to do whatever they think is best, but people who utilize credit are not evil and it doesn't make people who try to not use it "better".
Edited by velochic - 3/23/11 at 4:36am