@FICOdawg wrote:
yup some folks here seem to equate FICO scores with being financially savvy. FICO and rating agencies reward debt.
The formula is built to allow lenders to charge you more interest.....
I never discount anyones financial intellect, but the system is designed to take advantage of those financially not aware. Everyone has an approach or knowledge most others may or may not experience, and others may be up and coming, and learning. At the end of the day, everyone is just trying to understand to make the best of their own personal experience. I have zero horses in their race, and I know only what I will be doing based on what I know to work for me.
Today, I was out with all of the in-laws, it was a really good night. In a brief stint of converstation, sister-in-law mentioned that her "financial advisor" stated you should only have one debit card, and one credit card. I recognize they do what they can and attempt to delegate their financial well being to those that work within the field. It's commendable if you don't know enough about finance, but, it's not the only path up the mountain. And, it might not be the best avenue. I've known multiple people to lose their azzes by using financial advisors. One almost lives hand to mouth today, because her husband passed thinking they were financially secure while following an advisor. Not just any advisor, but my neighbor who ran the financial establishment she invested in. At the end of the day, they make money both up and down, whether you make money or not. They make their money. Not my only story, I have a handful, but at the end of the day, no one cares more about your finances than you do.
So I chimed in and stated that we have well over 25 cards, with $XXX,XXX in credit lines, and immediately she shut down. 100% opposite in what she was told by her advisor. No understanding of AZEO. No understanding that three cards is more ideal. No understanding that even beyond that, you can build out a credit profile to that of a tank status beyond three cards, and by developing a history of satisfatory accounts paid off. By this I mean when adverse conditions hit, they barely move the needle on the FICO score. If you haven't ever experienced this, then you don't know what you are actually missing. I experience this routinely. With the stuff I do, under normal situations my score should drop noticeably, but it never does. It at times score moves higher, so ask yourself based upon what you think you know based upon the formula, can you see why that might occur? Not everyone will hold the same weight of a credit profile, nor will they walk the same path up the mountain. Anyways, that's not the point of this post.
What I find to be quite sad, is that even when the roadmap is presented, few to none are ever interested. Since you can't make the horse drink, they find success, or failure in their own understanding or there lack of, from the situation.
So be it. Such is life...
$XXX,XXX in credit lines.
Multiple weeks in free credit reward vacations.
$X,XXX in bank rewards in only 12 months.
I like FREE...
800+ FICO.
Making all numbers dance on a financial ledger.
Abuse that score responsibility.
