The Myth of Credit Scores

I had an epiphany in the car this morning courtesy of Dave Ramsey. On my daily commute, I listen to various podcasts. Some days it’s “Stuff You Missed in History Class” or “This American Life”, but today, I chose “The Dave Ramsey Show”.

See, I’ve been focusing on cleaning up my finances recently and I had heard many great things about Dave Ramsey. Everyone could use more financial help/direction and while I wouldn’t consider myself by any stretch of the imagination to be “struggling”, I can always learn more. I can always do better.

So, I set off on my drive and hit play on Episode #7998: “Brooke’s Parents Are in Financial Trouble.” (Notice: episode 7998… that’sΒ insane.) After Dave coached Brooke through her situation and another caller through theirs, he came to a gentleman who was asking about paying off his car loan. During the call, he made a statement I’ve heard a lot and have even said myself.

Paying my car loan was good for my credit score.

This launched Dave Ramsey into a tizzy and I’ll explain to you why.

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