Yeah good luck getting a mortgage with no credit. Generally like Dave's stuff (and we're less than a year away from 0 debt even without extra payments), but I think that's a dangerous take to put your name on.
Dave Ramsey-Financial Peace University
- Thread starter HardcoreClone
- Start date
I don't follow Ramsey, but I know he's helped a lot of people in the past with generally good advice. I suspect after so many years his takes are known to many and he is becoming less relevant. This "hot take" may be a way to bring him to the forefront again.
You don't have to be a loan monkey to have a good credit score. And getting a mortgage without a decent credit score or no credit score at all is probably not going to happen. He's setting people up to fail.
He's rich and has no credit score. It's nothing but a banking system scam. But having said that I still haven't completely opted out and cut up my cards.
So he's counting on a mortgage lender to go above and beyond to try and find a way to get you money. That doesn't happen. Maybe when interest rates were higher banks would be more interested in getting your business. But with the way things are now, they're not exactly fighting with each other to find people wanting mortgages.
He's said that for years and its still true. The only problem is that the number of bankers with a brain cell still left has been continually shrinking. You won't be able to sell your loan to Fannie Mae likely with manual underwriting but they can keep the loans in house. Now the market has become very distorted due to the FED forcing interest rates towards zero. So now, you probably won't get the best rates without a credit score but you'll still come out just fine.
He's also had to deal with a horrible credit score after filing for bankruptcy. It's no wonder he hates the credit score system because it penalized him for his early failures.
I'm not sure what you're disagreeing with me about. Ramsey's no credit mortgage take or the banking system in general?
People without debt tend to have money. If you doubt that go ask some Amish. I'd much rather make a loan to someone with assets than someone who can juggle debts.
two points:
1 - In a small town where you can get to know bankers personally it's easier to work around the system. I've done it myself on several loans. Probably less feasible in a big city.
2 - My dad has a lower score I'm assuming because he hasn't had debt since - I think - the mid-80s. I asked him about it one time and he said "I'll never need a loan so it's a meaningless number". I don't disagree with DR's premise even though the reality for most people is they'll need one.
1 - In a small town where you can get to know bankers personally it's easier to work around the system. I've done it myself on several loans. Probably less feasible in a big city.
2 - My dad has a lower score I'm assuming because he hasn't had debt since - I think - the mid-80s. I asked him about it one time and he said "I'll never need a loan so it's a meaningless number". I don't disagree with DR's premise even though the reality for most people is they'll need one.
Umm no. He hates banks and bankers because they called his $3-4 million in loans outstanding when he was young and dumb. He had taken the old using other people's money to buy a bunch of rentals. They basically caused him to lose everything. Which was perfectly their right since they had lent him a bunch of money.
I really have come to dislike banks for a different reason. They makes TONS of money and did NOTHING of value. They simply create the money to lend to someone else and charge crazy fees to do such manipulation.
I disagree with Ramsey's point on a credit score - it's just easier in today's banking world to get a small CC and keep it paid off just to play the game and have a credit score.
The credit score is nearly meaningless when it comes to an actual measure of one's financial situation and the banking world is full of a bunch of morons for relying so heavily on it.
The credit score is nearly meaningless when it comes to an actual measure of one's financial situation and the banking world is full of a bunch of morons for relying so heavily on it.
Just save up $250,000 and buy your house with cash..... duh.
I know you're being sarcastic, but even here in Phoenix where the cost of living isn't very high, $250k will get you a house but it's probably going to have bars on the windows.
Think the Budgetnista is a better follow than Dave.
Debt-free is only one part of the equation. There needs to be focus on building wealth as well. One of her lines that I'll steal and apply to my son - he's debt-free. That's great. He's also broke.
Having retirement as like what, step 5? Is short-sighted. Yes, pay down high rate debt but if you have a company 401k match, you should absolutely go after that at the same time or you're literally giving away free money. And paying down low rate debt (like a mortgage) is not always the best use of money if you can get a better return by investing.
About - The Budgetnista
Search TIFFANY ALICHE"THE BUDGETNISTA"AMERICA'S FAVORITEFINANCIAL EDUCATOR Tiffany “The Budgetnista” Aliche, is an award-winning teacher of financial education, America’s favorite, personal financial educator, and author of the New York Times Bestselling book, Get Good with Money. The...
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Debt-free is only one part of the equation. There needs to be focus on building wealth as well. One of her lines that I'll steal and apply to my son - he's debt-free. That's great. He's also broke.
Having retirement as like what, step 5? Is short-sighted. Yes, pay down high rate debt but if you have a company 401k match, you should absolutely go after that at the same time or you're literally giving away free money. And paying down low rate debt (like a mortgage) is not always the best use of money if you can get a better return by investing.
Ramsey is great for people who are financially illiterate. He is an idiot for anyone who has any clue how to handle their finances. His anti debt stance is just one of multiple idiotic ideas he has. Don’t use debt a ton but it can be useful. Credit cards are great if you can control yourself. I pay for pretty much everything on my credit card. I have paid $0 to use them and have gotten a ton of rewards.
A credit score has more to do with your behaviors towards credit than your credit situation itself. Have you been responsible and repaid your debts as agreed, or are you constantly overextending yourself and getting into trouble. You should know more about your financial situation than the bank. The score reflects whether you've made good decisions or not
