Is Your FICO Credit Score Relevant?
Every week on my Sunday morning radio talk show, we discuss credit scores and how to raise them. We also discuss how to remove credit score errors and how to keep your credit history pristine.
There are a lot of reasons why you’ll want to have a great credit score:
- You’ll score the best deals on credit, whether you need a new credit card, auto loan, school loan, or mortgage.
- You’ll be able to get a better deal on all sorts of insurance. Right or wrong, insurance companies make decisions based on your credit score every day. The higher your credit score, the less you’ll pay in insurance premiums.
- Prospective employers will make an employment hiring decision based on your credit score. Even if you’re not applying for a job with corporate financial responsibilities, your future employer will pull a copy of your credit history and credit score before making a hiring decision. If the employer is trying to decide between two roughly equal candidates, the ultimate decision may rest on how high your credit score is – and if there is any glaring negative information on it.
While I respect Dave Ramsey’s terrific work in helping people get out of debt, here’s what I think about his comments on FICO credit scores.