What benefit does manual underwriting gain you in interest rate?

Have you actually sat down and talked with the bank you're looking to use? Have you talked with other banks?

I have a low credit score. Manual underwriting is used when people don't have scores. The same rates are available.  It's done by a person, not a computer. Yes, spoken to some lenders.

Only debt my wife and I have is the house. I am also really opposed to debt. However, I also know that in today's day and age, having a good credit score is important. I buy things with my credit card and pay off in full every month. We pay an extra $350 toward our mortgage principal every month (and our minimum mortgage payment is only $400 per month INCLUDING insurance and taxes so we are WAY over paying on our mortgage). My credit score is over 800.

Dave Ramsey has some good recommendations but I doubt he recommends what you are trying to do with your credit score.

You also say you have only been married for two years. What if your marriage ends unexpectedly.....divorce or death. What then?

From your link:

"Now don’t go out and trash your credit score and say “Dave Ramsey told me to!” That’s not what we’re saying."

Having a good credit score opens doors that might otherwise be closed.  Also, having a good credit score doesn't mean you have to use it.  

Also, today a zero credit score can be as bad and in some cases worse than a bad credit score. Years ago I was in the zero credit score zone so I know a little bit about it.

I have credit cards with no balance on them.  I use them for certain purchases that I would normally pay with cash.  Using the cards allows me to keep my credit score high while also giving me some consumer protections....basically for most purchases, the credit card company assumes more of the risk than I do.  If I paid cash, I would shoulder 100% of the risk personally.  Think of a careful use of a credit card as a form of insurance.  

If someone doesn't have the personal self discipline to handle a credit card, maybe that person needs to learn self discipline.  

I am vehemently opposed to paying interest for purchases if I can help it.  But, life throws curve balls sometimes.  Having a good credit score means you have easy and usually fairly inexpensive access to credit if needed.  

Dave Ramsey has some good recommendations and I agree with him way more than I disagree with him.  But, going "full retard" on anything is usually pretty ignorant.  I think the OP is mostly on the right track but his desire to have no credit score seems rather silly and pointless to me.  "Full retard" does aptly describe his worship of Dave Ramsey.

It's exactly what he recommends. Paying off and closing all credit accounts and using cash/check/debit to pay for everything.

Read my post above and click the link.


Also in the same post of mine you quoted, I asked what if you unexpectedly get divorced or your spouse dies. What then?


We obviously aren't going to convince you otherwise so good luck.  

If you are interested in an alternative perspective, consider reading this link.  

If you do read the link, read the comments too.  The writer agrees with Dave Ramsey on a lot of things.  He just disagrees with him on his thoughts on credit scores.  The comments have a post by someone who is a "certified" instructor for Dave Ramsey and he also disagrees with Dave Ramsey on credit scores.  

This quote is from the last part of this article........

"While I’m certainly not saying that all the advice that he gives is bad, the advice he gives regarding credit scores sucks.

Finally, if you don’t like my analysis and want to see what Dave Ramsey has to say, think about getting a copy of his book The Total Money Makeover. The book is an combination of educational handbook, inspirational coaching guide and self study manual. It has sold something like 5 million copies – so its a good example of his best work."

Remember, Dave Ramsey is a millionaire probably many times over.  What works for him may not work 100% for normal income people.  His comments on debt for most people are spot on though.  

Good luck in your search for a non-existent credit score.

What does divorce or death have to do with anything?  If one of us dies, the other will get $1million in insurance and will already be debt free.

If we get divorced, we will still be debt free. I fail to sense a problem.

I follow Uncle Dave's advice on about 70% of what he says. I deviate by working to maintain an excellent credit score and invest more then the 15% he recommends. Also, as soon as the primary residence is paid off I will purchase another property for investment and carry a note on it.

With self control you can have your credit card  free cake and eat it too while qualifying for the lowest mortgage rates possible. Concerning debt a mortgage is no more evil then a credit card or a car loan. All are borrowing money for desire, necessity or leverage.

Dave Ramsey's advice is designed for people who do not have the self control to manage their credit.

You should be working to get the highest score possible, not a zero score.  I haven't paid a dime of interest in a couple of years and maintain an over 830 score -- because someday I'll buy another house and that score is going to determine how much that house costs me.

Bottom line, your strategy is great if you can't handle credit.  It's ridiculous if you can.

So car loans are stupid, yet you still got one.

Credit/debt aren't evil.  They are tools that can be used properly or improperly, just like a table saw or lawnmower.

Car loan was before I saw the light. Once I did, I paid off the loan.

This was a nice little read here seeing all the opinions. Entertaining it was. The OPs score can/will go to 0 when the existing information on his credit report falls off over time and there's no reporting about him to the credit reporting agencies for 6 months. It happened to me.

Cash is King. I haven't used a credit card in a long long time. I have my reasons. #1 is I like to live within my means. It's not as easy as most people think.  It takes some doing. Some say you should have at least 1 credit card just in case of emergencies. That's exactly how you get into debt. I don't have one and I don't need one. My ATM debit card works everywhere just like a credit card. Another reason is I don't like greed. It changes people and not in a good way, it can become very ugly. There's a saying greed is the root of all evil. If I don't have the cash money to buy something I don't need it. That's the way I prefer to live my life. Lots of money, being wealthy won't make you happy. Neither will hi limit credit cards. Sure it would be nice to be fabulously wealthy but that's not the most important thing in my life. Not by a long shot. I took the position that if you have debt you really don't have anything. You're in the red or else you would pay the debt. I hope you all have a good day.

ETA: Visa, MasterCard, Discover, AMEX didn't get to be corporate giants by letting people use credit cards for free. They get about +/-3% of every single credit card transaction from the merchant. Just for juggling money. And then they charge OMG interest rates to to people which damages their whole life. I think they are greedy who's sporting that awesome Wells Fargo card? I don't want to support this system of debt slavery against Americans.

Debt is a Tool...  It can work FOR you or AGAINST you.

Just like a power saw, It can help you do more in less time, or it will saw off your fingers if you don't pay attention...

YOU have the control and are responsible for what you do with it...

But in the reality of today's world, having a zero credit score is not a positive thing...  

But if that is your Big Goal in life, then rock on Brother!!!  ...  America!  Home of the Brave & Land of the Free!!!

I hear you bigger hammer. That's the ole irresistible temptation! No thanks. The truth is if you really do have cash, you don't need credit. I didn't have a credit score goal, it just happened. Have a great day.

ETA: Neither a borrower nor lender be. -Ben Franklin

I have credit cards and pay nothing for them. They pay me to use them. I pay off in full.  I built a house last year. Used the credit card to purchase materials and paid off in full monthly. I got a lot of cash back....and bought among other things, a Glock 43 with the cash back. A free pistol for using a credit card works for me.

Those who can't control credit use need to learn self control.

I exercise self control by not using credit.

OP I dont blame you. MY dad has a zero credit score. If he needs something he pays cash. I am not that well off yet, but getting there.

No loans at all.

Good luck.

   


FDR