What is your goal? Why play the FICO game?

[Anonymous]

Hi, I'm looking for more inspiration to be purposeful with my finances and I want to know what yall are working towards. I'm rather new to improving my FICO score so all ideas are new ideas to me.

My first goal is to improve my loan terms on future purchases like my future dream-home and maybe a nicer car when this one dies. Also I want better terms on my car insurance and anything that pulls my credit.

My second goal is to retire early- before 55 if possible which requires a TON of work now so I'm starting early. I figure a great FICO score can only help me since "Rich Dad, Poor Dad" says debt can be the fastest way to build wealth.

[Anonymous]

You certainly save some money when you can get approved for the best rates.  I also feel it is necessary(for me) to have high enough limits where I can go out and make a large purchase and not have to worry about the reporting balances killing my scores.  

You never know when you may need credit immediately.  My car could die tomorrow and I would have to go get one.  Sudden funeral expenses?  Need a new roof before the next rain hits?  Applying for a new job and they run a credit check?  In these scenarios, you probably won't have time to fix your scores/profile so it is better to keep them as reasonable as possible.

[chhull00]

nice answer            

Overmedicated

[hernaemm90]

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@Anonymous wrote:

I figure a great FICO score can only help me since "Rich Dad, Poor Dad" says debt can be the fastest way to build wealth.

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Is this sarcastic?

[pinkandgrey]

Mostly for my own satisfaction lol

But also so I can get good rates on mortgages/auto loans, etc. 

Also, it’s kind of fun. 

[Anonymous]

My daughter was rear-ended in my car yesterday. While the damage initially looked minimal, it now looks like it could have caused some buckling that may be more expensive to fix than (the insurance deems) it's worth. However, I can walk in to any dealership tomorrow and get a car at a good rate. That's why I've studied this site for 3 years and worked to maximize my credit score. (I also really like finance, in general.) It gives you options...when you may not expect to need them.

[Anonymous]

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@pinkandgrey wrote:

Mostly for my own satisfaction lol

But also so I can get good rates on mortgages/auto loans, etc. 

Also, it’s kind of fun. 

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Yep. The satisfaction and fun. 

I don't need credit. It's nice to have it but I could live without it just as easily. It's satisfying getting that feeling of accomplishment though when you land those approvals though!

[Andypanda]

I do it to maximize my credit card rewards. Also for cases like when i need a new cell phone  I want to be able to pay it off over 24 montgs interest free, to keep my money earning interest longer.

[Anonymous]

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@Anonymous wrote:
It gives you options...when you may not expect to need them.

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This is exactly what I'm thinking, you said it well. I want the options and financial literacy to deal with the unexpected: both good opportunities and bad stuff like accidents. 

I'm seeing some forum signatures with more than $100k in available credit and even one with >$500k. Wow, those are impressive numbers but what does it afford you? What would you use part of that credit for? Or is available credit just a by-product of optimizing credit scores?

[Anonymous]

A lot of people on the forum just like seeing that total CL number get bigger, without a lot of intention of "utilizing it," outside of padding utilization and helping continuing the snowball. For me, I can attest to those lines providing a certain level of flexibility, and even opportunity, for business growth. Life is just easier with good credit.