The FICO credit score: Do you really need to maintain a high score?

For many years now, creditors have been using FICO for determining your credit limit and the interest rates charged to the consumer.

The scores are provided in your credit report, which is prepared by credit rating agencies such as Equifax, Experian and TransUnion. The scores can range from 300 to 850, but you are encouraged to have a high credit score because creditors offer relatively lower interest rates to people having higher scores –and lower rates to consumers with lower scores.

The calculations are based on many different aspects of your credit behaviors. For example, points are added every time you make your payments on time, when you show stability in your payment history, and many other areas.

Your FICO credit score thus automatically represents your credit worthiness, i.e. your ability to repay your debts on time. It is not surprising then to know that creditors look at your credit report every time you apply for a loan.

Having a high FICO credit score is no doubt beneficial, but the question is, ‘do we really need to become so very dependent on such scores? Isn’t there a simpler way of becoming more self-reliant and consequently eliminate the need or the desire to maintain a high credit score?’

Well, the answer is both, ‘yes’ and ‘no’. Yes because there really is a radical solution for eliminating the need for a high credit score and no because it all depends on you - whether you want to use the solution that will free you from debt, or not.

However, once you know how easy it actually is to eliminate the need for maintaining a high credit rating, it is highly unlikely that you will not utilize the suggested solutions.

So, what actually is the solution, you might be wondering? Well, the solution is that you just have to put an end to taking on additional debt and become committed to paying off your existing debt as quickly as possible, i.e. stop using any type of credit, big or small.

Yes, the solution is a zero FICO credit score. It does sound quite ridiculous at first, especially since we’ve all become brain washes by TV adds that tell us our FREEDOM depends on a high FICO credit score. However, you will be amazed when you realize the true power in living a life free from debt.

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