Should you follow the world's wisdom?
Recently read this article about a guy pursuing the 'perfect credit score'. What really struck me was his comment that a high credit score (in the US called your FICO score) means, "You're trustworthy".
The Bible says what we should aim for is not to borrow money (although if you do of course Scripture says you are to always pay it back) but rather to save up and pay for things exercising self-control until we have worked and saved enough to buy. Proverbs 22:7 is a good sample teaching of Scripture when it says, 'the borrower is a slave to the lender'. So credit (borrowing with an ability to pay back) is not sinful whereas debt (borrowing when you have no ability to pay back) is. But also, borrowing is spending tomorrow's income on today's expenses and for all of the 'want' purchases in our lives would be very, very unwise and we believe contrary to Scripture.
I would STRONGLY - did i say that 'strongly' enough? Encourage each Harvest person, couple or family to take our Financial Peace University FOCIS group (Finding Out Christ Is Sufficient) which will be offered again this winter. This is an amazing and in many ways, life changing course, taught by financial expert
Dave Ramsey (via DVD) and will give you all you need to either begin your financial life Biblically and wisely or make some needed changes to get things back to a healthy and Biblical place.
In this 13 week course Dave points out how the real perfect credit score is 0 not 850. The lenders (credit card companies, banks, etc.) want us to think that we are wise and 'trustworthy' when we borrow lots and repay. But that is because they are making money off of our borrowing habits. It is far better in every way to never borrow (not possible for all - at least right away) but rather pay cash for everything. Now if you are reacting to this statement I really encourage you to take the FPU class this winter as you will discover some amazing truths which I think could really bless you. I have watched and/or listened to the course twice and am working through it again. Over 100 Harvest people have taken it and discovered the truths which are so practical and helpful. So - lots of advance warning - start planning now to take this amazing class when offered this winter right here at Harvest!
Here is the article I read which I found so typical of worldly wisdom but so contrary to God's wisdom.
Norm
(MONEY Magazine - Ismat Sarah Mangla, staff writerAugust 26, 2010: 8:17 AM ET)
-- A major league pitcher dreams of throwing a perfect game. High schoolers
eyeing the Ivy League study furiously in hopes of earning 2400 on the SAT.
Meanwhile, Chris Peplinski is pursuing his own brand of flawlessness: an 850
credit score.
The 37-year-old stay-at-home dad from
Rogers, Ark., has already nabbed 813 on the FICO scale, the credit scoring
system most lenders use in sizing up potential borrowers.
That ranks him above more than 82% of
Americans and comes with a big payoff: It entitles him to ultralow rates on
loans, saving him tens of thousands of bucks over a lifetime.
Nevertheless, Peplinski won't be
satisfied until he hits the maximum: 850. Why? "Your credit score tells a
lot about you," Peplinski explains. "A high score means you're
responsible and in control of your life. “You're trustworthy."
To reach his goal, Peplinski
voraciously reads up on every element that goes into a FICO score, checks his
number every three months, and tweaks his behavior to eke out every possible
additional point.
Two years ago, he took out a car loan
even though he and his wife, Chrissy, had the cash to buy their wheels
outright. He figured that adding to his mix of credit might boost his score.
In spite of Chris's best efforts,
landing an 850 may be a quixotic goal -- only about 0.5% of Americans manage
it, FICO reports. "The 850 score is kind of like a unicorn," says
John Ulzheimer, a credit scoring expert with Credit.com who used to work for
FICO. "Everybody talks about it, but nobody's seen it."
The reality is that you don't need to
catch the unicorn to catch the best rates. But adopting some of the habits of
Peplinski and other members of the 800 club can help you improve your own
score.
And that can translate into real money:
On a $300,000 30-year fixed-rate mortgage, the most credit-worthy borrowers
will pay $14,200 less than those one tier below, $25,600 less than those two
tiers below.