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Who Needs a Credit Score?

by Don Current on September 6, 2010

Type & shadowThe following comment is straight from, a website sponsored by Visa and dedicated to “informing” people about their credit scores.

Can debt ever be good? There is such a thing as positive debt . Just like in establishing a responsible credit history, having debt in something like a mortgage and using it responsibly can be good for your credit score.

via Break the Code.

So it’s good because it’s good for your credit score. And what’s a credit score good for? Getting more debt. Hmmmm. That’s not self serving at all is it?

Another reason they list for a credit score being good is that it helps say “I am financially responsibly and trustworthy”. Apparently having large amounts of cash in a savings account doesn’t say that though because that factor does not enter into your credit score in any way, shape, or form. In theory, you could have $1 million in the bank and not be able to rent an apartment because of not having established credit.

My personal favorite is “I intend to always have a job or source of income so I can pay my debts”. Wow! I guess your credit score can now prevent you from losing your job! Strange, my good credit history didn’t seem to help me when my employer went bankrupt and kicked me out onto the street after nearly 18 years. However, the 3-6 months emergency fund I had in a savings account helped my family out¬†immensely! Having no car payments to keep up with didn’t hurt our position either.

Don’t buy into what they’re selling. I do recommend you make sure your credit report is accurate by getting your free credit report each year and verifying the information. Other than that, focus on getting rid of those debts and improving your cash position instead of worrying about what the self-serving finance corporations have to say about you

Creative Commons License photo credit: anitakhart