Dave Ramsey and Fico Score

[wmweeza]

---

@vanskills wrote:
I personally think Dave Ramsey is an idiot..i

---

I heartily agree.

Some of his advice is good for those renting who have debt and need some advice on how to chip away at it, but for anyone with okay finances who manages debt and makes it work for them (or in the case of cards PAY them) it's stupid advice.

[Anonymous]

I spent a decade as a license real estate agent.  Yes, you can get a mortgage without a credit score.  Credit scores are relatively new, and people were getting mortgages long before credit scores.  It was done via manual underwriting.  This is where a person sits down and looks at you as a whole.  He checks to see if you pay the water, gas, electric, etc. on time.  He calls references, and actually researches you to decide if you get a loan.  Moderator Edit - Please do not iclude links to outside comapnies.  This is a violation of MyFICO's Forums Terms of Service. Thank you for your understanding and cooperation.

Irish80
MyFICO Moderator

To go the manual underwriting route, one usually has no credit score.  To get "no score", you must pay off and close all your credit accounts.  About six months later, you won't have a credit score. 

[Anonymous]

---

@Anonymous wrote:

I spent a decade as a license real estate agent.  Yes, you can get a mortgage without a credit score.  Credit scores are relatively new, and people were getting mortgages long before credit scores.  It was done via manual underwriting.  This is where a person sits down and looks at you as a whole.  He checks to see if you pay the water, gas, electric, etc. on time.  He calls references, and actually researches you to decide if you get a loan. 

To go the manual underwriting route, one usually has no credit score.  To get "no score", you must pay off and close all your credit accounts.  About six months later, you won't have a credit score. 

---

Wrong on so many levels lol. 

[Anonymous]

Tydawg is mistaken.  FICO requires a minimum of ONE credit account that has been active within the last six months to have a score.  Therefore, if one pays off and closes all his accounts, in about six months he will not have a score. 

[Anonymous]

Your original post was misleading. If someone were to go the "manual" UW route that you speak of their credit score should be irrelevant so why would they need to cancel all of their cards first? That is what I was referring to. Additionally the mortgage company you speak of does not even list their rates online (that I could find). Seems they are more interested in luring people to call them. 

[Anonymous]

Not misleading:  Read again.  I spent a decade as a licenses real estate agent.  I worked with them quite a few times for clients.  Rates were the same as everywhere else. 

To go the manual underwriting route, one usually has no credit score.  To get "no score", you must pay off and close all your credit accounts.  About six months later, you won't have a credit score. 

[NC_Mtg_Loaner]

To the OP:

It's a type of mortgage loan qualification using " non-traditional credit".   

It's tougher to qualify for because--in addition to the previously mentioned limited supply of lenders who operate this way,  you'll be required to provide at least a 12 month history of account payment information from trade lines like utilities and such, but in all reality it's likely easier (and more peaceful experience for you) to open two revolving accounts and in a few months (of paying those bills on time and managing the accounts property) you'll have the qualifying score needed in order to obtain great terms on a mortgage loan in today's lending environment.

[marty56]

Getting a great FICO score is free but takes time unlike being rich which may not happen as hard as you try.  Dave helps those who can't help themselves and I find him entertaining.  Use any or all of what he says but you will have to maintain your FICO score, rich or not.

[Anonymous]

---

@marty56 wrote:

Getting a great FICO score is free but takes time unlike being rich which may not happen as hard as you try.  Dave helps those who can't help themselves and I find him entertaining.  Use any or all of what he says but you will have to maintain your FICO score, rich or not.

---

DR loves to brag about how he doesn't have any FICO score at all.  Obviously, this is because he has enough liquid assets to be able to purchase anything he wants.  To DR, credit is a tewel of da debil.  This is why I HIGHLY recommend Clark Howard - the guy subscribes to and teaches the same finanancial independence principles as DR does, however; he also realizes most average Americans don't have access to DR's fortune and he teaches common sense credit building/rebuilding techniques and principles (IOW, building one's various FICO scores) in addition to what DR teaches.  IMO, CH is MUCH more worthy of your listening and web surfing by FAR.  Just my opinion... YMMV as always :-)

[Anonymous]

I'll say this. Mrs. AT7 and I did do the Dave Ramsey class after we got married. At the time, I was debt free except a mortgage. She had a $40k in credit cards, auto loans, and student loans.

We sacrificed a lot and paid all that off in 11 months, on the salary of a cop and an office clerical worker. Together we made $111k.

Since then, Mrs. AT7 has been able to quit working and stay home with the kid. We have only taken out a car loan since, and we paid it off in less than six months.

We literally have a year's worth of mortgage payments sitting in the bank as an emergency fund. We save tons of money for retirement and send our kids to private school.