Credit Scores Are A Scam To Keep You Poor
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- เผยแพร่เมื่อ 4 ก.ค. 2024
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Is it possible to profit by buying out dumb debt? That seems to be an unlimited resource lol.
Yup, I paid off my student loans and my score plummeted over 50 points. Whatevs, I'm not looking for more debt anyway. I'm busting out of this financial matrix.
Here's a fun anecdote: I paid off my mortgage seven months ago. Last week, my credit score dropped 76 points because of "changes in my credit history." I went from 810 to 734 because I got out of debt.
Congrats!! But wow 😅😅
Yeah your credit mix changed and it sounds like they were calculating your original loan amount into total credit available.That is a huge hit, but your glass is most definitely more than half full. Congrats !!!
They care about keeping us in debt congratulations now jump in more debt lol 😆 just playing. .
My husband trying to qualify for a mortgage. No debt: credit score 640. Me: 70k in debt, credit score: 805. So they have me more debt… lol
It’s the same thing , if you put a 1,000 purchase on your credit card. I went from a 816 to a 790 for that one purchase.
Honestly, credit scores are a legal form of discrimination.
So true
Discrimination against dead beats? Good luck with that.
Discussing credit scores is the one time I saw two white guys give each other the silent knowing glance.
Yup. Exactly.
Yea, against people who won’t pay back their debt on time. I see the pov of this guy in the video, but a business still need to know how reliable you are. And we use a credit system to do it.
The dumbest thing for me is that I have a negative mark on my credit score because of a gym membership that I stopped paying. I tried to quit that gym, but they wouldn’t let me quit without paying for the full year, even though their equipment was broken, and the place was disgusting. So I stopped paying and they sent me to collections and that is now on my credit report. But the fact that I have paid rent every month on time for my entire adult life is nowhere to be found on my credit report.
That’s because you borrowed nothing to pay rent. Collection debts lose value anyway so you can negotiate it down and pay less than what’s owed.
This is the main one that doesn’t make any sense to me!
As for the gym membership if you used a credit card for payment you could’ve opened up a “billing dispute” with your bank for a refund
This only works with good banks
Banks thatre trash for billing disputes BofA Wells Fargo & Huntington
Every other bank will do a good job
Credit scores are BS. There are so many errors in these reports they aren’t worth what the agencies charge for the subscription.
The crazy part is credit scores are being used for insurance policies, job applications, and other things not related to debt…
Makes no sense
insurance is a contract, and people who have zero ability to budget or be responsible default on their policies, driving up costs for the rest of us to make up for it. You actually get better prices for home insurance if your credit is good. auto insurance doesn't use credit score.
@@justahyundaiI think the point is that not having a car loan or mortgage hurts your credit score. You are in a better financial position, but your credit score is lower.
@@justahyundaithat entire statement is flawed because the FICO score ISNT an accurate representation of how responsible you are. That’s the whole point of what so
Many of us are saying in the comments. If I pay OFF debt, my score goes down and makes me look worse. But I WAS responsible and I DID pay back my debt. So how is that accurate in showing me to be LESS responsible.
Go defend big banks and credit lenders. 🤡
Yep, discrimination
Having been in credit repair for about 10 years, a lot of this is true.
People often confused high credit score with being wealthy
I’ve had a great credit score for many years. I’m 42 and never missed a payment on a bill. I use a credit card to buy fuel but ALWAYS pay it off within the month.
I am totally debt free so having a great score doesn’t really affect me because I don’t borrow.
It is still better to be broke with a perfect credit score than being broke with a bad one. You will able to restructure your debts and save thousands in interest rates. It will be easier to get approved for loans and insurance. It is not a measure of wealth but a glimpse into ones financial habits, wich are linked to wealth
@@famicomnintendo If you sign a contract, obviously you pay it. But, I don’t think a massive debt taken out at 17 defines a person.
Poor people of any situation really have no business borrowing any money. One mishap can tank a 700+ score down to the 500s.
@@handleyobusiness almost everybody had debts. mortgage, student loans, car loans, credit card balances, I know a couple of people who have no debts at all, and they have no assets either. You are right that people should not borrow if they are broke but the reality is people rely on credit to get through life. Borrow to get a degree, borrow to get a car to go to work, borrow to buy a house then borrow more to upgrade it. That's just the way it is for the vast majority
@@famicomnintendo agreed.
Just lost 13points and I don't see the reason why. Credit score is really a scam for us to take out more debts to get more Credit score 🙃 😅
Years ago my bankruptcy dropped off and I was excited to see my score go up. Silly me. It dropped 60 points.
Nice work. I’ve been on the AMS51V$ train for a while, never sold as they are always building.
I just filed for bankruptcy and even though it said it was a derogatory mark, my credit score went up 59 points soooo. Idk it’s totally a scam
Congrats 2 U🎉🎉🎉🎉🎉. Why do you think most “IN THE KNOW” people and businesses file for BANKRUPTCY? Because it does indeed IMPROVE YOUR CREDIT SCORE😮😮😮😮!
This guys tell is as it is = RESPECT
debt is modern day slavery
Yes its modern slave chains
And we enter into this servitude voluntarily, with big smiles on our face because...just wait until my co-workers see my new car or I tell them about our new house!
Actually, the Bible talks about debt. It says that when you owe someone, you are their slave.
no because it's voluntary.
@@JohnSmith-fo5cx yes voluntarily as long as you don't want an education (student loan) a house (mortgage loan) car (car loan). and once you have taken out a loan, the chains of slavery are there. there is a reason why these things are so expensive and a reason why wage growth is not keeping up. there is also a reason why you learn history and religion in school but absolutely nothing about finance and saving.
It makes sense to the companies who sell your information. It's always about money. The companies pretend it's not, but it always is
If you need a loan to buy anything... You are the furthest thing from rich.
Including buying a home.
If your only loan is a home. Thats step one if you have a loan for everyday expenses (credit card) you're at the bottom.
Rich people use liens too genius. They pull equity against their assets... which are loans.
@@DarkHorseParatrooper and when they get over leveraged they sell assets to clear the debt... Buying assets with leverage is a risky endeavor.
@butwhytharum ever heard of buying a business with a loan? 😂
@@BelligerentWaffles yeah it's what venture capital firms on wall St do...
Then drive the business into the ground and put people out of work. And who's on the hook for the loan? Tax payers because the bankrupt business that was saddled with debt to pay the loan the vc took on to buy it... It's a scam.
@@BelligerentWaffles I started a business without a loan. Being in debt is the number one reason why businesses fail.
So glad you are saying this. As a financial coach I encourage my clients not to be obsessed with the score but ensuring the information being reported is accurate. Also not of the information is necessary to be reported as these are private companies that make money off this data. Equifax, trans, experian.
Paid off my car and my credit score dropped. Canceled an unused cc and my credit score dropped. Can't win. I would never be able to buy a car outright😆. Agreed with most everything else you said. They need to get rid of those bureaus altogether.
In the short term canceling an account can lower your score but that’s not really the issue if you have multiple accounts it will effect your score much less
Everything on this video is absolutely true. Credit score can save you money but only if you are fiscally repsonsible. Pay off your card every month, get the rewards and move on. 800+ credit score will get you a 1/2 to a full point off your loan on a property
Pay off your mortgage and become debt free? You lose 40 points. All it measures is your debt.
You don’t really need that credit score anymore if you built it up for a home loan and have now paid it off. Unless you want to buy another house.
Either way you really need around 760+ credit score to get the best rates. So if you’re still around there you should be fine.
We had a lot of debt paid it all off over a 5 year time frame. When we started we had a 770 FICO score but that was after we paid off our mortgage. After our last CC was paid off our score dropped as others have said 50 points.
When it comes to cars is cash always best. I've known a few people who go to a dealership, they negotiate a price ans financing on the car, then they just do a payoff
I find it amazing that paying a loan off decreases your credit score. Having no "Debt" decreases your score. I wanted to be debt free prior to retirement, and my credir score decreased nearly 100 points. The real problem is that other services look to your score to base their pricing. Insurance costs are related to credit scores. Because I no longer owe debt, I have to pay more for insurance, even though it is paid in full up front. If I purchase a new auto (even with cash), they want to run my credit. It is a racket that needs government intervention to correct.
Depends on your finances . 1000$ in AMS51V$ is 4000 AMS51V$ if it goes to 50% of ath in 2024 thats a 600% gain. If it goes equal to ath . Its a 1200% gain.
In English please? 😂
Sounds like you want to pump and dump your crypto. crypto is a scam
I've not once in my life checked or cared about my credit score. I always considered it a marketing scam. I determine myself what I can afford.
You should check it to make sure other people aren’t using your identity for credit that’s about it.
I bought a house last year then froze my credit because I don't need to open any more lines of credit for a long time (I hope never).
Thank you, THANK YOU for making this PSA. LOL. Credit Score is a SCAM! I deleted my Credit Karma for this exact reason! I closed out a CC that I paid OFF and my credit score went down 30 points!!! WTF?
I just paid off a credit card and my score went from 720 to 619.
I have 5+ paid off cards that I’ve never carried a balance on my score is 790 😅
Being a guy from South Africa with not much capital. I used my credit score to buy multi lets properties and not I use that money to buy dumb stuff😅
People like you love to “ brag” because you got some information over others.
@@777sweet Your entitled to your own opinion I get that. But invested in my self to learn what i know now. I sacrificed alot to get to where I am including eating food that I don't like just because i couldn't afford those ones so please. Open your mindset and stop thinking like people like me are enemies we are not. We teach other as well
But don't you need a good score for better interest rates for a mortgage ? It's kinda the ONLY reason I'm trying to get it up from 340 from last year lol
I have been saying this for years now.
really not a rocket science, but people just dont understand. Thanks for sharing.
FICO and credit scoring, the way it's setup today is pretty slimy. I wouldn't call it an outright scam like when you buy a new car at a dealership, but it's definitely not a fair system. It needs to be tweaked. For example if you pay off a car loan your score drops right after. Really?? Come on bro. You can do better then that. I just play along with it, there's a way to use the system to your advantage to build your credit score, unfortunately this is the system we have in place and we have to use it until it's changed or replaced by Congress.
Can't believe that this needs to be taught. I did this decade of sacrifice and I am hella cash flow positive. This video is certainly positive reinforcement that I did the right thing.
Gotta do the decade of sacrifice between 20-35, otherwise, it is harder to accept reality. Sooner you start, sooner you finish.
Use credit cards for the benefits and pay the shit off.
Amazing video
I guess I am ultra risk lover. Even though I don\'t hold meme coins, I only hold AMS51V$ and ETH . Fingers crossed
I've been saying forever that insurance and credit scores are scams. I think if regular and poor people have to obsesss over something, and people with money often don't give it a second thought, something is up with it. The fact that paying off a collection or charge-off actually hurts your score shows this is a scam
I paid off all of my loans early and my credit always stayed in the toilet until I realized that the credit score reflects how much money the banking system has made off of you not how trustworthy you are...
My credit score shows N/A. I been out of debt for so long, I no longer have a credit score. It's like I never had one. 20+ years without using credit at all. You'll have a credit score showing N/A like my. Been out of debt since I was 36. Been paying everything in cash since then. I'm 60 and not worry one bit I don't have a credit score. Cash rules anyway.
You're winning the game.
Thank you so much for this video. Last year I got out of credit card debt. I have zero credit card debt. I haven't used credits card in over a year and Experian just emailed me last week to notify me, that I no longer have a credit score. Once I paid cards off my credit score took a nose dive. I'm an elder millennial born in the 80's and clearly remember when a "fico score" wasn't a thing. Trust me, I'm not sad about it.....
Finally Jaspreet has came around and realize that credit scores are worthless. Debt to income ratio and net worth measures true wealth.
Yup! I paid off two cards and my score dropped. Not planning on any more lines of credit.
Galatians 5:13
13 You, my brothers and sisters, were called to be free. But do not use your freedom to indulge the flesh ; rather, serve one another humbly in love.
Have the mindset of Jesus.
Jesus is coming back!
Funny, I was just thinking this yesterday after seeing my credit take forever to go up 20 points and then instantly go down 50 points right after. Def gonna pay off my credit cards ASAP and be free from this stupid ass game lol
They also check how much over the minimum you pay. It’s total BS. Tbh credit scores don’t matter for literally ANYTHING except for home loans.
Appreciate the content!👍🏾
Very good video, thanks !!! I really appreciate watching your channel
Thanks for the info
Do you remember that "permanent record" threat from grade school? Credit scores are the same for adults. Those super secret algorithms make the whole thing dodgy. Paying non tax deductible interest is for suckers.
Thanks man
Credit score was used to give good car insurance, used to give good insurance for house, get apartment...rich talking is not understanding that 80% are workers and are not entrepreneurs...
A MM video under 10 minutes? Haven't seen one of these in a while! Thank you :)
I started playing the credit game in 2018. After gathering a few cards and "growing the garden," my average score is somewhere around 790, so that's the "bragging rights" range since most look for 740-760. My joke is: I can get the best deals on a mortgage... all I need now is money!
Love your content- nothing but good old common sense- keeping it real !!
It's crazy how someone who doesn't participate in the credit score shenanigans will be considered to have a negative or bad score... why not leave it neutral for people who have their own money and wealth but rather than giving them negative for not participating..
So true, when I am paid up and not under debt my Fico score goes down!
Thank you.....videos like this that adds in with everything else about finance money❤❤❤❤ I'm glad you made this video.
Ive been searching for this video for years. Youre the first to make it somehow MM!
Great content.👍
Thanks so much. I recently did a consumer proposal. Will never get a credit card again NVR 😅
Stay at a hotel? Rent a car? I guess you don’t travel
@@M_SC almost all debit cards are also visa or mc now. I’ve never had a problem. In the olden days yes, these were not as accepted. But as for a rental car, I don’t drive, never have. I live in a city with excellent public transportation.
@@M_SC Renting a car with a debit card tends to just come with a deposit and your current insurance policy. Never had an issue and the deposit has always come back in full.
MinorityMindset: some of the best financial commentary on the internet!
Credit score is a scam. Gone are the days where ppl save and pay for things cash bc for the most part everything is completely unaffordable. So, most ppl will need credit for cars, houses other big purchases.
I would argue, a credit score measures how well you MANAGE debt. Which is why carrying some forms of debt is better for your score than paying off all your debt.
And it's still not very good at it.
I totally agree and having a higher credit score reduces your borrowing interest rate. The world economy is based upon spending and not upon investing. Great video!
I believe that the key is to build wealth and not debt. I know that it is almost impossible to buy a home with cash in the US, but housing is bought with cash in many countries. The US government debt is paid with 40% of taxes received and this lead to higher taxes which hurts the economy.
Thanks a lot veere. I needed that video❤ thankuu❤
Thank you … I kind of knew it
Net worth is a much better thing to measure. The only useful thing that a good credit score is good for is that it is an underwriting factor when rating your insurance.
Agree. Home loans to put more in debt 😮
That is a really cool purple.
credit score is weird. I'm poor, I never have more than a few hundred bucks in teh bank. but I have had a credit card since the day i was 18 and used it for everything and paid it back twice a month and my credit score is almost always over 800. I literally have no investments, no assets or anything, live paycheck to paycheck. i guess maybe you're right, they really want me to buy something i cant afford xD
Well said SIR🎉🎉🎉. But you know as well as I that most people do not understand how TIME can be used to better their ECONOMIC SITUATION.
You are amazing!!! Thanks for the advise!! The only loan that is making money of me for now is my property!! To be continued….
Thank you.i knew i was on it
You're the man, Jaspreet!
Great video
Credit scores are big scam. Paid off my car loan, CS fell by 40 points :).
Facts 💯
Yup, your excellent points are truth to power. i just paid off a consolidation loan and saw my score drop by 10 points. Simply amazing the scams the average consumers has to be alerted to.
I'm digging myself out of debt. My score is now 753. Just pay off your debt and become free.
I cancelled my plan to buy a car
Its my dream, but letter I'll be consider again
I've never known my credit score and im 37. I've always paid cash for cars. Never paid over 800 dollars for a car. The highest I've ever rented was 500 per month. I literally pay cash for everything and live within my means
The people who give you a credit score all while printing money is the biggest scam going
AMS51V and Sauce Turbo will be huge.
I love your presentations, Jaspreet! Hah, the only people who should be getting mad at you are the ones who profit off credit scores. How can anyone blame you for sharing an explanation? Financial education should be a requirement in junior and high school, at least the basics of managing household expenses, etc. But as you say, "they want you poor" to keep you under their control. Money may buy things, but the most important thing it buys is personal freedom...
FACTS 💯💯💯
What about all the scams people asking you to invest and steel all your life times saving and in the end, they get a slap on the hand and your left with nothing. Yes they may get Short time in jail and you know they sent the money over seas and and lived high off the hog living on your money then you lose.
They are thieves but just don’t fall into that trap. Get rich quick is a scam
You can pay ur car off and ur score will drop 😂😂😂
This is very true. Everything you said is facts! I known several people throughout my life that have literally everything they could ever want in life materially plus more without even having a 600 credits score. That's because they work hard to have multiple income streams and what's even more fascinating no one has a clue including the credit system.
Its all about purchase power. If an individual is responsible with credit, the credit score can be utilized for increasing wealth. The problem is that responsible use of credit is not prevalent in any public education with the exception of finance or economics lessons. Hoping that changes soon.
Credit score is meant to keep us in debt
More accurate to day a game. And not designed to make you poor. Marketed to make you poor. As with any tool, it's up to you to use it right. Learning how to use credit is paramount
I used fixed, low interest rate loans to buy assets that later 17X my portfolio.
I use credit cards and invest all my cash back and never pay interest. I get to keep money in a high yield savings account while I’m waiting to make payments. I use margin on my stocks to be able to not sell off my assets to buy more and have my money still work for me plus loans aren’t taxed I use the borrow buy die strategy.
How about using rental income to finance a car if you own the properties?
This man is a national treasure! Jaspreet, you should become president of the United States someday.
Havent used my credit for over a year. It goes up and down, but mostly upward. I let it do its own thing lol
Oh jaspreet, you make me blush 😊
I already subscribed
3:49 hilarious!
How do you not have a debit card? You would have to visit the teller every time you go to the bank or credit union to deposit money.
Totally agree…credit score is useless 😮
I like it.
The thing is yeah the credit score will drop after paying something off but it will go back up over time!