Credit Is Required To Live In Society?

[Music] brought to you by the every dooll app start budgeting for free today Jade we were talking during the break about something that we've been seeing a scary Trend that's been happening for 30 years now but it's only getting worse with time and that is the idea that the credit score is the scoreboard that you need to win financially and it's ingrained in us at a young age I mean to the point that that last caller on his 18th birthday at midnight it's like I got to get my first credit card and I don't blame him for that that's culture telling us they're saying it's a necessary right of passage to becoming an adult yes to the point your first credit card out of 17 yeah George we had a caller call in last week I I think I was on with you maybe it was Ken but she was so sweet you know and she just was like hey I'm just calling I want to know what's the best credit card I should sign my son my son up for he's going to be 18 years old and so of course you know I told her the the information around credit scores and how really it's just your interaction with that how much debt you have how long you've had it the different types of debt you've had what percentage of your debt that you're actually using to what's available and that's how they measure your credit score and so as we do we pulled that clip and posted it on social media and the responses were wild to me because it just shows Society has done a really good job of just masking the idea that you can be free and just completely taking up all the space saying You must have a credit card hard because in the comments if I can just read can I guess that what they were I'm guessing it's like these people who you would think are paid by the credit bureaus and credit card companies to defend them yeah I love this one it says hey this is an idic response this is not a real world response and in my head I'm thinking I have nothing to gain I'm not taking your interest I'm just some girl on a radio on a podcast trying to help you out we're not getting paid by the debit card companies to take down big credit right okay then this one uh it says Jade it is necessary you're coming from a place of privilege oh that one that one must have stung in a weird way it did because I'm like What's the privilege I I I started with $30,000 and $460,000 of debt such privilege I don't know so then this one says Jade it is required the word that I kept seeing over and over is it's required and I was like man the brainwashing it has worked it's taken I devoted a whole chapter of my book Breaking Free from broke just to credit scores because I had to help people understand the very first thing before we talk about any other debt is credit scores and it's the only three-digit number that Americans obsess over as much as their weight it's crazy and when you look into it I walk through like here's what the credit score is actually made up of payment history amounts owed length of credit history new credit and the mix of credit your PO per of debt if you will so you have to be in repayment your entire life you have to play their game perfectly and keep your debt keep it a long time keep going into debt have a nice mix of debt make your payments perfectly and we'll give you this blessing of a score which does what helps you get more debt but do you see what do you see what George is saying in order to satisfy those requirements we have to be in a repayment mode our entire life that's seriously jacked and it's crazy because it has nothing to do with how well you're doing financially you can have an 800 credit score and you might not have 800 bucks in the bank right and as we've seen from I mean callers call in I have a great credit score but I'm in crippling debt living paycheck to paycheck the bank doesn't give a rip about you and people think wow what a blessing it is to have Capital One offer me a more credit on this line of credit or offer me a higher credit score if I do XYZ yeah they could give a rip about your freedom I get the intent behind it parents are going well I want my kid to be able to to buy a car Jade what do I do maybe avoid buying a car that is way too much for an 18-year-old to have and just pay cash and the truth is if you are already in a p in in a car which most in a car payment which most of us were or most of the listeners probably are I started in two car payments and we said okay now that we know that credit's not really helping us it's not a crutch let's sell off one of these vehicles which we did and then we paid off the other one over time it took like two or three years to pay the car off then we had no car payments and we had one car and then we said okay the next time what we're going to do is we're going to save up a little bit extra we're going to put it with the trade in and we're going to buy our next car in cash that's how you get out of it and then from then on you just buy your cars in cash every time you trade in you add a little bit to it and that's how you trade up so there's that what about renting George because that seems to be the this is the big one I dug into I did a whole video where I called I contacted the rental car companies I looked at all the fine print every single Major Rental card company has a debit card policy meaning there is a way to rent with a debit card here's the stipulations and usually it's a higher deposit sure and so you just plan for it or you pay for the the rental in full and plus the deposit and so it's really not that big a deal and there's so many Alternatives around it but people always in their head say but what if and no my friend said one time that's the worst right it's so it's just this idea that we're depending on what somebody else said for but for some reason they don't care about what we said and then renting an apartment is a big one renting an apartment talk about that little Jimmy he needs a credit score to rent an apartment I've rented multiple Apartments even houses with landlords without a credit score again I called these people I called apartments across the country I called landlords they said well are you employed I said yeah uh do you have a criminal background no I'll pass the background check I said but I don't have a credit score they said okay that's fine we'll just need an extra extra money for the deposit and a lot of times they just want to see other trade lines if you can show I pay my utility here's the record I pay my phone bill here's the record I just don't borrow money I think that makes you look more respons very similar process for how I got a house without a credit score yeah talk I got a mortgage I didn't pay cash I got a mortgage without a credit score so did I by the way way and people go well no no lender will do that we're like have you not heard of Church Hill mortgage they've been partnering with Dave for 30 years now and they specialize in these loans and all it is it's a real person looking at a real financial situation instead of being lazy letting the computer automate it based on your credit score yeah and they go okay well have you paid bills on time yes do you have consistent income yes yeah okay here's a mortgage and let the record show because a lot of people think oh well it's easy for you guys you work for Ramsey of course you can get it done I had a zero score before was even a thought to come work here and I bought a house with a zero credit score before it was even a thought to come work here so don't try to let that be the we just want what we want is for you guys to open your mind and accept that there is a way that doesn't require you being in bondage it doesn't require you being manipulated by debt and I get it sometimes isn't it weird how and I know I'm crossing a little bit of a line here but sometimes when you've been abused for a while you start to protect the abuser and I feel like in this case we've been abused by debt and credit and like in America like debt is this drug and we've just it and now we're starting to defend it no not my credit score I need that don't take that away I'm like guys let's let's take a breather here and they think there's like a thousand loopholes like my life is 10 times harder every day because I don't have a credit score it's really does not affect my day-to-day life um and people say well Jade I need a credit score for my job the application requires it they're checking your credit score to see if you've been delinquent you've had bankruptcies right if you have no score it's not going to affect your job people try to use that one on me all the time and that's a good point that's the a very clear delineation we want to make a zero credit score is not a bad credit score a zero credit score simply means I have no dealings with debt and if I did in the past I paid it all off and once you pay it off takes about six months to a year for it to roll to zero indeterminable that's a great Point people contact me and say hey I heard you talk about the no score loan on the mortgage I want to do that and I say well do you have a score they say yeah it's bad that's why I want to do this I go no this has to be a no score loan not a low score yes so big difference there and again we don't care about the score but we don't want you to have a bad score that means you're missing payments you've been delinquent that can hurt you financially that can hurt your ability to rent or buy a house and so we want you to have no score which means you got to get rid of the debt and it's amazing what happened Jade when I dropped this scoreboard of having the credit score back in 2013 I paid off my debt and like said it'll disappear eventually it does it did and then I realized oh I can just like use my own money people think well George you just need to be a credit card person they you just need to be disciplined and I go well why don't you just be disciplined enough to use your own money and only buy things when you have the cash and they go well you're missing out on the rewards I go I've done the math bro I got to spend a hundred grand to get two grand back you got to spend a lot to get that yes that is insane and so I guarantee you I can show you how to save two grand with your everyday spending using your own money money create your own reward system and stop helping Capital One sponsor the next Taylor Swift tour love that and build big buildings downtown while you can't afford your groceries so debt in credit not necessary not required and not needed is what we're saying all you need to do is take control of your money and it'll take care of the rest you're going to be okay I promise you just try it 30 days attempt this no credit card spending use your own money see what happens and watch your credit score disappear and realize it was a terrible scoreboard in the first place create your free every doll budget today the simplest way to budget for your life