Your FICO score is an I-love-debt score, isnâ€™t it? Does it factor in your incomeâ€”or, even better, your debt-to-income ratio? Nope. Does it factor in your savings accounts, net worthâ€”anything other than debt? Absolutely not.
The only way to have a good credit score is to go into debt, stay in debt, and continually pay your accounts perfectlyâ€”without adding too much debt or paying too much off. In other words, stay in debt for as long as you can. How ridiculous is that?
I'm 25 worked at the same place for 7 years make $36,000 yr. I've had one credit card(which was a prepay through my bank), got my first loan which was a car loan this past August. Have absolutely nothing negative financially in my life, you ask me I'm the perfect candidate to e a first time home buyer!
The house is a 4 bedroom 1500sq ft fixer upper listed at $14,500!
If you ask me banks don't look at someone's financial picture in the correct way, this is why we had the housing crash and why so many houses(at least in my area) sit empty!... more