Rachel: I heard this all through college: “I have to have a credit card so I can build my credit.” I heard that from professors, friends, my friends’ parents . . . everyone.
So I started wondering, Why do I need a credit score? I looked online, and I found this: Your debt history counts for 35% of your score. Your debt amount is 30%. The length of time you’ve been in debt counts for 15%. New debt counts for 10%, and 10% is the type of debt you have.
So it’s all about debt! To get a great credit score, you have to be in debt and stay in debt. Then, you use your credit score to go into more debt! A good credit score helps when you go and get a car loan—but you don’t need to worry about that because you’re paying cash for a car, right? And when you get a mortgage you can actually go through a process called manual underwriting, which doesn’t require a credit score.
So if you’re not going into debt, then you don’t need a credit score! And that’s the truth. The only reason you have a credit score is to go into more debt.
I know this is weird advice, because everyone will tell you how important a credit score is. But I’m here to tell you that it’s not. You can live life without a credit score!