Credit score versus debts?

Visualize Whirled Peas: Credit score versus debts?
I’m amazed at the number of posts in this section concerning credit score. Is this because of all the TV commercials touting “know your score”. Pay $ 29 per month and know your score. “Free (not free) Credit Report dot calm?

Again, I’m amazed at all the questions concerning how to get/establish/maintain a credit score. If you simply use credit as a convenience and not a means of enhancing your lifestyle, you will be fine. If you simply avoid borrowing money, avoid debt and pay your accounts each month (in full) you will do just dandy.

Explain your opinion, if different..

Answers and Views:

Answer by WRG
I don’t disagree but the way credit scores are calculated is very complex. I can fully understand where people don’t know how changes can effect them.

Answer by tropnhof.
That’s all true. But, if a person has made some misstep somewhere, has paid a credit card bill late or something, then it effects ones credit score. If you have good credit, buy a new car, cancel a credit card or apply for a new credit card, all of that effects your credit score.
If you want to buy a house, it’s good to find out your credit score first; a very high score gives you more bargaining power when you go to a bank for a loan. A low score, you have less bargaining power, and you might want to wait a year until your score is higher. There are legitimate reasons to want to know your score, even if it’s just out of idle curiosity.

Answer by BoSox
I think it’s because credit has increased in importance over the last few years.. 10+ years ago cash was the way to go, no credit no problem, your income alone was fine.. And look where we are now, an in debt society. People have little choice but to be wise with credit and establish at least 1 credit account these days if you’re over 25.. If you’re younger it’s not as big of a deal to have no credit, banks don’t really expect youngins to have much credit or any at all, if anything they prefer you to have none when you’re young, shows responsibility… But adults over 25 or so, yes…. Credit’s becoming quite the necessity. I’ve seen people turned down from mortgage loans offering 20% down, had a bit of a safety net set aside and a steady income, but they had no credit at all… Credit’s more important today than ever. Unless you’re rich, you need it.
So to all the posts, I think the responsibility of having and managing credit is finally starting to hit people.

Answer by tudorjason
People do seem to care more about their scores than their actual credit reports. A score is just a number that generalizes your report. You can get your reports for free, but if you’re willing to purchase your score, why not use a source that provides an actual FICO score? That’s what I always think.

It probably is because of all the commercials, like freetriplescore.com or freescore.com. Unfortunately, they are misleading and the information they provide isn’t really useful to people because it’s inaccurate.

I do agree that people should use credit as a convenience. People definitely used credit to improve their lifestyle; not just with credit cards but ARM mortgages and other things, and people got themselves into trouble.

There is one argument I disagree with though. Obtaining debt is practically the only way that most Americans can afford a home, a car, and sometimes an education. So we can’t avoid debt and avoid borrowing money.

But definitely living within one’s means, paying on time and in full, and checking reports is good enough.