I recently finished reading Dave Ramsey's Total Money Makeover. My wife and I have a good amount of debt between our student loans and auto loans. I like a lot of his ideas about snowballing your debt and staying away from debt altogether.
My only concern with this is that it will basically kill your FICO score. We are looking to purchase a home down the line with a large downpayment after we kill this debt. He claims you don't need to use your FICO score but I don't see how this is possible and also I believe having a poor FICO could hurt us in other ways in the future.
Can anyone provide some insight on this? How important is the FICO? What are some good ways to maintain a good FICO score without using a credit card? Is this another area Ramsey is incorrect on?
Thanks in advance!
My only concern with this is that it will basically kill your FICO score. We are looking to purchase a home down the line with a large downpayment after we kill this debt. He claims you don't need to use your FICO score but I don't see how this is possible and also I believe having a poor FICO could hurt us in other ways in the future.
Can anyone provide some insight on this? How important is the FICO? What are some good ways to maintain a good FICO score without using a credit card? Is this another area Ramsey is incorrect on?
Thanks in advance!