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Is Fair Isaac Corp score (FICO) FAIR to financially prudent people?
There is no doubt in my mind that Dave Ramsey's credit score is too low. I know this because my score is under 800 (high 700's) and yet, 100% on time payments, 11 year average age, less than 10% utilization, zero negative comments. I have paid off mortgages early. I pay cash for cars. The only debt I have is monthly credit card charges which are paid in full each month and on time.

Okay, so what isn't fair? FICO does not factor earrings or assets into the credit rating. It actually penalizes you for paying cash for cars or paying off mortgages.

Who would you rather lend to:
Someone who has liquid assets equal to 10 times their available credit and who owns cars and homes with no debt; or
Someone who is underwater on their car and home, but makes timely payments?

The latter, all other things being equal, has a higher FICO score!

Credit Karma says more credit cards will help your credit rating because it is a sign that more lenders trust you! That is probably true but is ridiculous when those lenders are making their decision based on your FICO score in the first place!

The truth is, I don't need a higher score because I have no intention of borrowing any money. It just chaps me that my credit score isn't as high as the scale goes. But a credit risk tool that ignores assets and income is ridiculous!

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