Comments on: How to Improve Your Credit Score http://themilitarywallet.com/improve-fico-credit-score/ Personal finance for military, veterans, and their families Wed, 08 Feb 2012 12:24:40 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Matt Wegner http://themilitarywallet.com/improve-fico-credit-score/comment-page-1/#comment-11566 Matt Wegner Sat, 13 Nov 2010 14:51:13 +0000 http://themilitarywallet.com/?p=446#comment-11566 The sad part about the credit score is that it has nothing to do with your net worth. It's based only on debt. You can't have a credit score without going into debt, and you can't go into debt without a credit score. You could inherit a million dollars tomorrow and your credit score won't change one bit. You could pay off your debts and never borrow money again, and your credit score will eventually fade away to zero. That's my ultimate goal: a credit score of zero. When I reach that goal, it means I haven't borrowed for years (I'm on year one of having no debt). To me, being debt free is more important than a good FICO score. The sad part about the credit score is that it has nothing to do with your net worth. It’s based only on debt. You can’t have a credit score without going into debt, and you can’t go into debt without a credit score. You could inherit a million dollars tomorrow and your credit score won’t change one bit. You could pay off your debts and never borrow money again, and your credit score will eventually fade away to zero.

That’s my ultimate goal: a credit score of zero. When I reach that goal, it means I haven’t borrowed for years (I’m on year one of having no debt). To me, being debt free is more important than a good FICO score.

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