How to get an 850 credit score without debt.

And the answer is it’s impossible.

It is impossible to get an 850 credit score without debt.

In fact, it’s impossible to even get an 800 credit score without debt. And here’s why.

The FICO, you guys know it goes from 350 to 850.

In order to get your score to raise, that means you need debt.

The two individuals we’re talking about is one, Grant Cardone, and two, Dave Ramsey.

Two different philosophies on different times of debt.

We’re going to talk about both of those.

But if you understand that the FICO is built off of debt, meaning, to have an 850 credit score, guys, let me tell you what has to happen.

You literally have to have had perfect payment history since you were 18 years old.

I don’t even think that you can get to an 850 credit score before you’re 42 years old.

Analysts say you got to be 42. From the time you’re 18 to the time you’re 42 years old to literally be able to get an 850 credit score.

But what does that mean you did?

That means that you’ve paid the banks thousands and thousands of dollars in interest.

That’s all it is.

Okay, it’s bragging rights.

I’ve got an 850 credit score, but think about it this way.

How much and how many thousands of dollars have you paid the banks in credit card debt to get to that 850 credit score?

I’ll tell you what FICO is.

FICO, was designed for banks, credit scores are designed for banks.

Because if you think about it, purchase a house, purchase a car, credit card.

By the way, credit cards are the most marketed instrument in the world.

Think about it for a second. All the people that I’m talking to, the millions of Americans.

You guys probably have one, maybe you have two, maybe you have 25.

It is the most marketed item in the world.

Needed a very good job on it. And it is designed for banks to make money.

Think about it. You’re paying interest over and over again.

Now, yes you could have bragging rights, but remember that a 760 credit score, or an 850 credit score, there is no difference.

There are both what they call class A credit scores.

You’re going to get the best interest rate, the lowest down payments, and the best terms and conditions on a 760 versus an 850.

An eight 50 is good. You tell your friends, “Hey, check out my carton man, I got an 850, It’s a Brighton.

Anything over 760 is the same.

But, let’s talk about the two philosophies. Dave Ramsey, says in biblical terms, that you do not want to have any debt.

That means no mortgage debt, no car debt, no credit card debt, zero debt.

On the other hand, Grant Cardone, says you cannot have anything and build any kind of empire without debt.

You need to have debt.

In fact, Dave Ramsey Show, the ABC where he goes and speaks at his place that he does the studio from.

He had to have built debt in order to facilitate where he’s at today.

Now they’re both multimillionaires, so who is right, who is not?

And I think my philosophy on it is going to kind of take both sides. Understand that the typical American right now in 2019, the average median income is $63,000.

That’s what the average American makes because there are people that are multimillionaires, there are people that make $17,000 a year and less.

But the average is 63.

Now, Dave’s side says, save, save, save, save, save, save, save.

No debt. Pay your house in cash, pay your car in cash.

Now, if you’re making $63 then we’re just going to say $63,000, a year and you already have a home or maybe an apartment, or cars and you’ve got family and you got food and you got expenses.

And the average American lives paycheck to paycheck, and the average American doesn’t have 500 in savings.

How many hundreds of years is going to take you to get to a $200,000 house to pay in cash?

It’s a little unrealistic in my opinion, to be able to buy house cash, number one.

Number two, in a different opinion, is, I wouldn’t buy a house at all and we’ll talk about that. Grant says, “Debt’s not your problem.” Grant says, “Hey, you need to have debt, because debt is leverage.”.

If you need to buy equipment if you need to buy a car if you need to buy a house, which should be another topic.

Because I’m going to share with you how to leverage out too.

If you need to do those things, you need to leverage debt at low-interest rates, so you can maximize and save during that period.

But debt is not your problem, in my opinion. Debt has nothing to do with the problem.

In my opinion, income is a problem.

Now, what that means is, you need to raise your income, not focus on debt.

Raising your income would make you then think, okay, if my income keeps rising, as long as I don’t go out.

Just because I raise my income and go out and spend all this money on this and spend money on this and go buy fancy cars.

And get a bunch of credit cards and rack them up, that’s silly.

Just because you raise income doesn’t mean that you go spend more.

That being said, who’s right and who’s wrong?

Do you believe the side that says that you do not need any debt at all?

Or do you believe the side that says have debt so you can leverage to save more money?

That’s the controversy. But there is no way to get a credit score.

In fact, there was no way to get a credit score at all without debt.

Why?

Because you’ve got credit cards, you’ve got revolving lines, you’ve got installment lines, you’ve got vehicles.

You’ve got mortgage payments, you’ve got rent payments. That is all debt.

Every bit of the FICO Score is designed for debt.

My recommendation is this, get a few credit cards.

Don’t go crazy.

You don’t need 200 credit cards.

You just need a few credit cards.

And my personal opinion is, I wouldn’t buy a house.

As a mentor, I teach a lot of people that buying a house is probably something that I wouldn’t do, I would actually rent.

Because you can take that money.

The idea and the quickest way to wealth, think about this for a minute.

The quickest way to get wealthy is to have less debt, not more debt.

Because if you’ve been making $63,000 a year and you’ve got all these expenses, how could you possibly save, save, save, save, save, right?

That’s what the average American with 500 bucks in there… you have less than 84% have less than 500 bucks.

How could you possibly buy a car or house cash?

It’s going to take too long.

You have to leverage debt, so you’ve got to be smart about the debt.

But the quickest way to become wealthy is, technically, and this is what Dave says, which I agree with this.

The quickest way is to leverage, right?

Invest early, but leverage debt, small amounts in the beginning and then pay off your debt.

Maybe it’s getting a couple of credit cards, maybe then it’s leveraging, getting a house with your credit score, getting a low-interest rate, buying a car, and then slowly working to pay those off.

Because once you are debt-free, even if you’re making $63,000 a year… think about it this way, even if you’re making $63,000 a year and you have no car payment, and you have no house payment.

And your credit cards were paid off every month very easily, think about how much of that 63 would actually go towards investments.

A lot more. You’ve got 1,500 on mortgage payment, $500 car payment, and 500, 600 bucks a month in credit cards.

Dave’s right in the aspect of, yes, you should get debt.

In the beginning, he doesn’t even say do this. He says, starts with no debt, which I don’t believe in that.

You’ve got to have some debt, in the beginning, to get the items, and then pay them off as fast as possible.

And I’ll do another show on this one too, as far as how to pay off your debt as fast as possible.

I also, contrary to that, believe that you need to raise your income, whether that’s a side hustle, whether that’s getting with your employer.

Maybe, you’re self-employed, think about another product.

You need to have multiple products, multiple services that you offer, not just one and increase income.

What I focus on is 5% on debt.

I really don’t even look at the debt that I spend, but I do focus everyday 95% on how I can increase income.

That’s where my focus is. If I can make enough money, the debt, I don’t really think about it anymore.

Keep increasing income and the debt will not be as unmanageable.

That’s how you get to an 850 credit score. It needs debt.

Don’t walk around brag and say you got an 850 credit score because, to me, that just means you’re an idiot.

That means that you have a ton of money, thousands and thousands of dollars to banks.

I mean, yes, it’s needed, but it’s not really smart, to be honest with you.

Yes, you need a credit score, right?

Because you want to be able to leverage things, but in the grand scheme of things, don’t brag that you have an 850 credit score.

Brag that you are debt-free eventually and that you can live your life, invest and have more passive income than your work income.

The goal in life you should have more passive income each month than you have in the hours that you’re working.

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