Why FICO Stinks

I was listening to Dave Ramsey the other day and he was talking about FICO. For those that don't know what FICO is, it is simply your credit score. FICO was developed by Fair Isaac & Company as a 'method of determining the likelihood that credit users will pay their bills'.

Your FICO score is determined by five factors:

1. On-time and early payments, 35%
2. Debt level, 30%
3. Length of credit, 15%
4. Type of credit, 10%
5. New credit, 10%

The only way to have a really high FICO score is to go into debt and stay there perpetually. Dave said it should be renamed the "I Love Debt" score. The majority of the people concerned about their FICO score are those people who spend most of their income on payments and interest as opposed to wealth building.

Your FICO score is determined by your willingness to go into debt and stay in debt. Is this your main goal in life?

"The rich rules over the poor, and the borrower is servant to the lender."
Proverbs 22:7 NKJV