No thanks credit score! I’m Saying No To FICO – sos034

I'm Saying No To FICO and working on my Debit Score

5 components of FICO score:What makes up a FICO score

  • 10% Type of credit (debt)
  • 10% New credit (debt)
  • 15% Credit (debt) history
  • 30% How much you owe
  • 35% Debt payment history

Each of these components are based on debt. The more you borrow and pay back the better your score, and the more you are likely to pay in interest charges. A bad score typically is one that is below 650. A good score is above 650. I believe the BEST credit score is 0.

However, the FICO Score is a one-sided system that only evaluates your debt, history and availability to borrow more and does not take into account how much money you make or how much money you have.

Arguments for the continued use of the FICO score that don't hold water:

Car Insurance rates: There is statistical evidence that shows that those with low FICO scores are more likely to file a claim, less likely than those with good FICO scores. Unfortunately, it isn't a fair evaluation for those who are living a debt free lifestyle and have a 0 FICO score.

Renting an apartment: If you had an apartment to rent, would you rather hire the guy with a 0 FICO score but can show he makes all his payments or the guy with a good FICO score because he is making all his payments on the thousands of dollars of debt he has?

The arguments for continuing to use credit to “build your credit score” no longer hold water thanks to eCredable's AMP Credit Report which reports ALL your payments, not just those based on debt. For more information go to

I don't want to improve my Credit score. I'm going to say No to FICO and work on my Debit score!


Holla From The Impala:

Top 5 signs you are addicted to Credit Cards

  • 5) You use your card everywhere for reward points, even to put air in your tires
  • 4) You show off the design of your cards to everyone you see at your Mom's birthday party
  • 3) Your stack of cards is thicker than your cell phone
  • 2) You have to give each of them a descriptive name just to keep track of them
  • 1) You are convinced that as long as you can use the card and it is not declined that you still have money to spend.

Links mentioned in this episode:

I've been beaten by a Squirrel:

Original written post this episode is based upon:

Interview with Steve Ely, CEO of eCredable:

For more eCredable information:

Interesting, unique campfire gear:

eCredable is Incredible: Using alternatives to prove credit worthiness - sos033
A MoneyPlan for Kids - sos035

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