Nothing irks me more than someone telling me that I am not financially responsible based on my credit score. Basically, if you never borrow money, then your credit score is 0. This makes sense: if you never borrow money, then you don’t have a credit rating. Personally, I’ve never taken a loan from a bank and have never owned a credit card. I haven’t checked, but I expect my credit rating to be non-existent. My lifestyle does not depend on a “good” credit score. The only loan I intend on taking is for a house. Other than that, I will acquire goods and services using the money that I have attained.
Unfortunately, this is a mindset not shared by the majority of Americans (including our Government, a topic for another time). The mindset of Americans says that everyone will need to borrow money at some point, so to ensure that you will be given money, you need to borrow money ahead of time to prove your worth. Proving your worth ensures a good credit score, which in turn ensures your financial success. A majority of Americans worships the credit score. A majority of institutions rely solely on the credit score to determine a person’s financial responsibility. This brings me back to my opening statement: Nothing irks me more than someone telling me that I am not financially responsible based on my credit score.
Consider the following example. Someone with no credit score wishes to rent an apartment. This particular landlord depends solely on the credit score to determine whether his potential tenants are financially responsible. Upon seeing no credit score, the person is denied the opportunity to rent the apartment. Why is this a flawed situation? Because what the landlord doesn’t know is that the potential tenant has enough money in his bank account to purchase the entire apartment complex!
At this point in the process, I did not realize that AT&T was solely using my credit score to authorize me for service. Later I would find out differently.
3 comments:
It seems to me that what irks you even more than being told you are not financially responsible, is being forced to become "financially responsible" the way the credit industry tells you to become financially responsible.
AT&T is basically saying we trust the credit industry more than we trust you.
Most Americans thus say, "I need the credit industry to trust me."
Which is why most Americans "worry" about their credit score. You can improve this by using credit cards, taking out loans, etc. and paying your debts back on time.
What I don't understand, is that if you do acquire goods and services only using money that you have attained (instead of purely on credit), than you can actually take advantage of the credit system and get stuff like free airplane tickets, free gas, etc just by using credit cards and building your credit score.
And then you don't have to worry about what stupid AT&T thinks about your financial responsibility.
your financially irresponsible
This mindset could be seen as Biblical. Jesus said that he who is faithful in the small things will be faithful in larger things. People that loan money also believe that if you are faithful to pay off small debt (monthly credit cards bills, car loans, student loans, etc) then you are more likely to be faithful in paying off a large house debt.
However, I too think that avoiding small debt is a better indication that you would be able to pay back a mortgage. And mortgage lenders DO look at you current assets as well as your credit history to determine you eligibility for a loan.
But it would be wise to consider getting some credit cards. After all, if you want to borrow money for a house one day, you will need to "play their game" to get it.
So get a credit card and start charging!!
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