Quote:
Originally Posted by pyroguy
I fortunately didn't trash my credit when I was younger, but ultimately I'm aiming for a zero credit score. The only real "need" for a credit score is to borrow money. I'd rather just not borrow money. As soon as my house can be paid off I'll be happy to be done with debt.
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First off, I'm in 100% agreement with your outlook on debt but...
Your credit score is, unfortunately, used for more things than just borrowing money. Insurance companies look at it... that is the big one. Also, some utility companies and places like that. Details aside, a zero credit score is a really bad idea. You have to work within the system.
So there is smart debt.
Example - Instead of completely paying off your house maintain a small balance. You get the benefit of maintaining a payment history plus the bank deals with the insurance payments. Win/win. The negligible amount of interest you pay is totally worth it.
Finance a new car then pay it off really quickly. Whatever interest you pay is buying you a payment history and keeping that credit score high. Money well spent.
Stuff like that.
Research the subject and decide for yourself what's best for you.