Stop Obsessing over Credit Scores, it is a Debt Score

Added: 2026-05-07

[00:00:01]Good morning everyone. Good morning.

[00:00:04]Just making a quick video at 5:00 a.m.

[00:00:07]before I head to work. So guys, if you didn't notice, yesterday the S&P and the NASDAQ finished at new fresh records.

[00:00:18]Um, I just checked the futures market and it seems like it's going to be another good day in the market. Seems like tension in the in the war with Iran is deescalating.

[00:00:31]Um oil price of oil, barrel of oil is dropping. Actually, they said tumbling.

[00:00:38]So, we'll see what happens. It'd be nice to see the Dow get back over 50,000 points. So, guys, like I said before, we are witnessing history right now. We are witnessing history in the stock market. We are seeing levels in the market never that we have never witnessed ever before as the market continues to climb. And retail investors like myself, consistent investors, we're going to reap these benefits. We are going to reap the benefits. It's a beautiful thing.

[00:01:15]So guys, I want to talk to you guys real quick about something.

[00:01:18]Do you guys obsess over your credit scores?

[00:01:24]Do you guys obsess over your credit scores? Because I know some individuals that really really obsess over their credit score.

[00:01:34]Uh they want to be I want to get to 800.

[00:01:38]I want to get to 750.

[00:01:40]I understand that everybody wants to have good credit. Don't get me wrong.

[00:01:45]Everybody should aspire to have good credit, but I know some individuals that obsess over their credit score.

[00:01:53]Like me, I don't really give a [ __ ] about my credit score. And I'm telling you guys, that's how I feel. I'm not telling saying anyone should not care about their credit score. That's not what I'm saying. I'm saying Frank doesn't give a [ __ ] about my credit score. I mean, I'm not going to I'm not going to pay my bills late. I'm going to make sure my bills are paid on time. But what I've noticed is as my wealth has grown, the less and less I really care about my credit score.

[00:02:29]You know, I'm not going to, again, I'm not going to like pay my bills late. I'm not going to deliberately pay my bills late or not pay my bills or something like that. Um, but I don't obsess over my credit score. It is what it is. Um because to me the only thing your credit scores signifies is how well you pay back debt.

[00:02:56]Cuz to me I like to refer to it as your debt repayment score because that's all it is. That is all it is. Because I've noticed individuals with assets, money, high net worths, they don't get they don't care about credit scores.

[00:03:15]I know if I need money, I can grab money out of multiple accounts if I need money.

[00:03:26]I haven't applied for credit. I haven't applied for credit since I bought my home. my home. I bought my home in December of 22. So, I think I started looking in like October.

[00:03:40]Um, is when my lender ran my credit and I started looking for a home was in October 22. So, I haven't applied for any credit in over 4 years and don't plan on applying for any credit.

[00:03:56]Um, so yeah, I don't obsess about my credit score. I don't because I don't envision having to apply for any credit because to me, I view it as, like I said, a debt repayment score. Because when you pay off debt, the score drops, then you take out debt, the score goes up. What sense does that actually make?

[00:04:27]If I pay my bills on time, my credit just keep rising.

[00:04:34]But when I pay something off, you pay off a car, you pay off um a loan, like a personal loan or something, pay off a home, uh pay off a like a store credit card or something like that, your score drops. That makes no sense to me. That has never made any sense to me. So, like I said, me personally, I don't obsess about credit anymore because I don't envision having to even apply for credit anytime in the future. I mean, the only thing I may do in the future is refinance my home.

[00:05:13]That's about it. That's the only credit that I envision having to do. And honestly, and if it doesn't benefit me, I'm not going to refinance my home. I just continue continue to pay it down anyway because I know I'm saving interest by aggressively pay paying it down. But when I b bought my home in 2022 when the interest rates were rising out of this world um when rates was being raised so my current interest rate right now is 6 and a half%.

[00:05:45]Um because that wasn't because I had bad credit. That was because interest rates were skyrocketing in 2022 when inflation was going through the roof. Um and the Fed was raising interest rates. So I mean personally like right now my credit score right now is probably about it's probably about 760 770.

[00:06:09]Um because I I don't you know with even with all the credit I have on credit cards, I don't use it. When I do use a credit card, I pay it off um every single month. You know, no car payments.

[00:06:21]My only credit my only credit that's being reported is my home and when I pay off a credit card.

[00:06:30]Yeah, but that's just me, guys. I I I view a credit score. I know people that that obsess over their credit score. Guys, when you at a 750, when you get to about a 730, 740, 750, you got excellent credit. You have excellent credit. You're going to get the best race out there. I mean, if you get to 800, that's just bragging rights.

[00:06:54]That that that's just pretty much bragging rights. If you get to an 800 credit score, it's bragging rights. Um, but it's also you might as well be bragging about having debt because the more debt you take out, the um the higher your credit score will probably be. So that's why I view it as a debt repayment score.

[00:07:20]And as your assets grow, guys, you really won't care about your credit score. You really won't.

[00:07:27]I'm just telling you again, that's how my feelings are. I'm not telling anyone to not care about their credit score.

[00:07:33]That's just how I feel about credit scores. It's just a debt repayment score. That's all it it rates you on is how is your ability to pay back debt, your ability to keep taking out debt, repaying the debt, take out debt, repaying the debt. That is all a credit score. Um, really when you boil it down to it, that's all they really rating you on.

[00:08:00]How well is your ability to pay back debt and how it's been in the past.

[00:08:07]So, stop worshiping about credit scores.

[00:08:10]Once you get over 730, 40, 50, the credit score is great. You're going to get the best race anyway. So, guys, have a great day. Hopefully, we have a great day in the market. This is Frank. I'm out of here.