My credit isn’t great (in the 670s). I’m assuming it’s because of my outstanding student loans (mostly with the government), if not then there’s some cosmic injustice the likes of capitalism is inevitably deeply involved with.
I think I’ve amassed enough to pay back my student loans but….why? Like, my plan since college has essentially been to never pay them back. ‘Get better interest rates on mortgage, car payments’ like who gives a fuck. Is a credit in the late 700s going to get me a house with a 1000 dollar down payment or somethinng, will it increase my credit line by 10s of thousands, will i be able to move into a luxury loft while only being able to afford a single month’s rent with the plan being to squat for the rest of time?
Is it even worth it?
A better credit score can be used to get loans at lower rates. That's it. If you don't need a loan, your credit score doesn't really matter at this time.
Good credit is worth it if you have a stable, high paying job and little debt; you can get nice credit cards with lots of perks, low interest rates on car payments and (slightly) lower mortgage rates, etc. It will not change your financial situation, and the amount you're saving in lower interest rates is infinitesimal when compared to large student debt.
You can have your wages/social security garnished to pay back your loans eventually, but it's not guaranteed that this happens. Honestly, if I were you I'd put my student loans on the absolute minimum monthly payment (if you can afford that) and not worry about it; if somehow you are able to start earning more money and get financial stability, you can pay it back and start thinking about getting a loan for some kind of purchase. If not, who cares, so long as your wages aren't getting garnished.
There’s two strategies: the bad credit one is to basically abuse people who loan you money and charge off debts and do bankruptcy to fuck them over. The gamble is that they will eventually notice and send one one thousandth of their power after you and you’ll die.
The good credit strategy is to get better and better credit and a more and more enticing c/d ratio to get loaned more and more to have nicer and nicer things. The gamble is that you have to be incredibly prepared for everything because you’re playing the long game in a system designed to screw you over.
If you’re not tied to financial things like:
- personal loans
- car loans
- mortgages
- car insurance
- renters insurance
- homeowners insurance
- rental applications
- job applications
- opening savings and checking accounts
- opening new credit cards
- opening new utilities service accounts
Then sure, it doesn’t matter at all.
Income-to-debt and debt-to-total credit available ratios matter when considering what an interest rate or insurance premium will be.
History of consistent on-time payments and low carrying balances on debt are very important.
Anything above 700 is treated as the same btw
The luxury loft idea probably not, all of these expensive "luxury" apartment places also check your income as well by asking for an offer letter (that could easily be faked though tbh)
Anything that will ask for a credit score will also ask for a stable income that's as equal or even more important in my experience
