Zero Fico Score

[Anonymous]

I was listening to the Dave Ramsey Show Friday night.  He stated he has a zero fico score!  Zero because he has no debt.  I have never read of anyone having this.  What would the fico report say?  Anyone have a zero score also?

SandyK

[Anonymous]

Probably what he means is he pays cash for everything in his life, and has for some time, so FICO has no data to compute for him.

And I really doubt he actually has a "zero" unless his house is paid for in cash, or the note was PIF at least 10 years ago so that the mortgage co has fallen off his CR. Ditto for his cars. And how does he pay for all his plane tickets and hotels for public appearances w/o a major CC in his name? Hhhmmmm...

[MidnightVoice]

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sankofa wrote:

I was listening to the Dave Ramsey Show Friday night. 

That is a mistake - he suggests wasting money and some of his advice is really unsound

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sankofa wrote:

He stated he has a zero fico score!  Zero because he has no debt.  I have never read of anyone having this.  What would the fico report say?  Anyone have a zero score also?

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someone with less than 6 months of credit history will have no score, which is totally different from a zero score.  The lowest FICO score is 350.  Hence there is no such thing as a FICO score of Zero.  Also, people with no debt can have a very high score

This is the sort of mistake that DR frequently makes.

[Anonymous]

ivyalmighty wrote:

 And how does he pay for all his plane tickets and hotels for public appearances w/o a major CC in his name? Hhhmmmm..

         Complimentary tickets perhaps? 

         SandyK

[Anonymous]

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MidnightVoice wrote:

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sankofa wrote:

I was listening to the Dave Ramsey Show Friday night. 

That is a mistake - he suggests wasting money and some of his advice is really unsound

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He sure has a large following.  There wasn't any of his classes in our area until last week when a billboard at the Lutheran Church around the corner advertised his Financial Peace University classes will be taught there starting the next week.  This really peaked my interest to watch his television show. 

SandyK

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sankofa wrote:

He stated he has a zero fico score!  Zero because he has no debt.  I have never read of anyone having this.  What would the fico report say?  Anyone have a zero score also?

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someone with less than 6 months of credit history will have no score, which is totally different from a zero score.  The lowest FICO score is 350.  Hence there is no such thing as a FICO score of Zero.  Also, people with no debt can have a very high score

This is the sort of mistake that DR frequently makes

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           Oh that's right MV, 350 is the lowest so zero isn't possible for a fico score. 

           I have been told he doesn't advocate debt of any kind and everything he

           has is paid for in cash.

           SandyK

Message Edited by sankofa on 04-13-2008 11:31 AM

[MidnightVoice]

I would guess he has a company to take in all that money he gets from making fiscally incorrect advice, and that the company has the cards 

[MidnightVoice]

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sankofa wrote:

           I have been told he doesn't advocate debt of any kind and everything he

           has is paid for in cash.

If you have a ton of spare money you can book hotels, cars and plane tickets with cash (or a debit card).  But even that is fiscally less sound than getting an interest free loan from a credit card company, or an interest free loan from a car manufacturer.

Intelligent use of the financial system of this country does NOT mean debt.

[Anonymous]

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MidnightVoice wrote:

If you have a ton of spare money you can book hotels, cars and plane tickets with cash (or a debit card).  But even that is fiscally less sound than getting an interest free loan from a credit card company, or an interest free loan from a car manufacturer.

Intelligent use of the financial system of this country does NOT mean debt.

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Dave Ramsey does approve the use of a debit card vs a credit card.

I feel intelligent use of a credit card can provide a lot of benefits and save one a lot of interest on many things including houses, cars, clothing, and even borrowing cash.    It's just being intelligent about the use of credit cards, which many people aren't, including him, that  I think he is alluding to.  From reading a little about him, he has been in some serious debt and got from under it and then repeated it.  Pretty much like my hubby and me and millions of other "not going to use credit cards again people" lol, but again we're under the strain of paying off debt.  Didn't help that one of the grown kids moved back home either lol.

I have confidence in what you say MV, because you are a high achiever.  We are learning a lot from your posts as well.  Perhaps you should get a radio station and a tv program and be at the other end of the spectrum and say "Fico scores aren't evil."  and then relate how you got such high scores to the viewing audiences.   

SandyK

[MidnightVoice]

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sankofa wrote:

.  Perhaps you should get a radio station and a tv program and be at the other end of the spectrum and say "Fico scores aren't evil."  and then relate how you got such high scores to the viewing audiences.   

SandyK

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No thank you - I think I will be doing plenty of radio as it is the rest of the year!  My next stint is tomorrow    It must be "The Voice" as one of our wonderful Moderators says. 

I am a little hard on Dave, but he takes using cash to such extremes that it irritates me!

[Anonymous]

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MidnightVoice wrote:

...wonderful Moderators...

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I don't think I've ever seen you use this phrase in all the time I've been on the boards!