I’ve heard the FICO credit score referred to as the “I love debt score”, which really makes sense when you see how it’s made up.

A third of your score is based on how much debt you have, a third is based on how you pay off that debt, and the other third is comprised of how long you’ve had that debt, what new debt you’ve just created, and the types of debt you have.

So do you really need a credit score?  I’ve been trying to figure out if I could get by without one.  Say I’m not planning on borrowing money for anything besides maybe purchasing a house.  And for that, lots of people get a mortgage using manual underwriting (where they look at your situation, not your credit score).  I can see it may be helpful, maybe even required in most places if you’re planning on renting a house or apartment.

But if you’re not planning on going into more debt (getting loans), do you really even need a credit score?  I think I’m gonna try to get mine to “0”. 

While we’re talking about it, federal law mandates that you, as a consumer, can put a freeze on your credit report.  Freezing it keeps anybody from looking at your score which protects your identity.  It costs $10 to freeze your report, and you can unfreeze it at any time for $10 if you have to apply for a loan, get a job, find an apartment, ect.  This will even help cut down on the amount of junk mail you receive as companies will stop randomly scanning through your report.

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