Head over heals for your credit score.

So many of us are head over heals for our credit score. Many of us nurture that number as though life depends on it. We actually believe that life would not exist without good credit. We’re wrong.

My wife and I have come to realize that our credit score means nothing except we’re playing “kissy-face” with the bank. Yep, a good credit score is not a reflection of financial stability but rather a reflection of how good you are at paying back borrowed money.

I used to worry and work diligently to keep my score around 740 but I work at it no longer. We’ve cut up all credit cards and are intensely working to pay off debt as quickly as possible and one day we will have a credit score of 0. Yep, I won’t need it again. I’m done cuddling with the bank.

Keep this in mind. If you were to invest the average car payment of $475 into a Growth Stock Mutual fund with a 12% rate of return, in 30 years you’d have $1.6 million. I don’t know about you, but I’ll keep driving my beat up van. After all, it’s only a transportation appliance.

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One thought on “Head over heals for your credit score.

  1. Sometimes I like the option of having credit. We couldn’t have bought our house without it. But, we try to avoid financing anything else. For example, we will start saving soon to buy another car in 3 years or so. And if the car breaks before then, we would rather “borrow” from our own savings to buy a less nice car and make that work. I think financing cars is usually a bad deal.

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