Guest Author: Joann Von Kampen
The idea that some have about NEEDING a credit score baffles me a bit. Is it really true? Do you NEED a credit score?
I bought a house over the summer and I’ve never had a credit card in my life. I had an established payment history (insurance, cell phone bills, things like that) that they used, but other than that, I’m not even sure I have a credit score, as again, I’ve never had a credit card in my life and I don’t plan to.
But I have observed several “Dave Ramsey followers” and of course others, insist on keeping their credit score high. Doesn’t money (cash) talk? That’s always been my idea, but maybe I’m completely wrong.
My parents were in debt for a very large part of their life (and mine). They took Dave Ramsey’s Financial Peace University about 12 years ago through their church. They started following his plan right away and began paying their debt off.
In the meantime, I went to college and always tried to save my money. Never signed up for a credit card. Didn’t know much about Dave Ramsey and his teachings, but I just knew it was good to save money. I was VERY lucky, my parents paid for my school (cash!) so I didn’t graduate with student loans. (Hold on a minute: Yes, Following Dave’s plan allowed them to cash flow my college!)
Once I graduated, I got a job and moved back home with my parents. It was a goal of mine to only live with them for two years and purchase a house. I did not want to move to an apartment. In fact, on my way home from college for the last time, I promised myself I wouldn’t live in an apartment again. I moved back into my parents house in January after graduating in December and I took FPU in February of 2014. This class changed my life.
I started saving as much as I could. I’m a teacher, so I don’t make a lot, but I saved and saved while paying the few bills I had.
I am proud to say that I was engaged in November 2015 and we were set to marry June 2016. Of course like most couples we wanted to have a house we could move into together. He’s from Canada and was busy paying off school debts, so he was not able to contribute to the savings for a home at this point. So I began looking for homes in my price range with a plan to put down 20%. I found an area where they were building and jumped on it. At this point, I had over $50,000 saved.
I did have to get a cashier’s check for a large amount for the mortgage company, it was amazing being able to put 20% down and I still had a good chunk in savings. We got married in June and my husband and I are going through the immigration process so currently he is not able to work. Thanks to Dave’s plan, I have my savings and overall budget planning and we are able to live on my income. He will be able to work in the next 4-6 months once the government gives us the okay and he gets his green card.
Once my husband starts working, we plan on tackling the mortgage payment and throwing anything we can at it. Our Goal is to have it paid off before we are 30 (I’m 25 now, he’s 24).
I have never once paid any sort of extra deposit nor have I ever been treated unfairly and made to pay more because I do not have a credit card.
My parents continue to share this message with others by leading FPU in Spanish at our church. I have met and spoken with Andres Gutierrez (FPU Spanish representative from Ramsey Solutions) several times and my mom spoke to him the day we got the keys to the house as a guest on his radio show, It was awesome!
We have not had to finance anything in terms of furniture or anything we need for our home. We have been able to cash flow everything we need and the things we want.
I am a huge advocate for Dave Ramsey. His plan works. You just have to be disciplined and live like no one else so you can live like no one else.
Cash is king. It really does talk.