In this episode, Austin and Bob discuss various financial myths and the impact they have on personal finances. They particularly focus on debunking the belief that a good credit score is essential for financial success. Bob argues that while credit scores may be important initially, they become less relevant over time, especially for those striving to become debt-free. They explain that credit scores are heavily influenced by debt usage and payment history and emphasize the importance of having cash and a proven track record of financial responsibility. Austin and Bob also share personal experiences where they were able to navigate financial transactions without relying on credit scores. They highlight the need for individuals to do thorough research and find institutions that are willing to consider alternative factors beyond credit scores.

Key Points and Quotes Highlighted:

  1. Debunking the Myth of Credit Scores:

Austin and Bob challenge the belief that a good credit score is essential for financial success, arguing that it becomes less relevant over time, especially for those aiming to become debt-free.  

  1. Navigating Financial Transactions:

The speakers share personal experiences where they successfully navigated financial transactions without relying on credit scores, highlighting the need for individuals to do thorough research and find institutions willing to consider alternative factors.

  1. Alternative Factors in Financial Transactions: 

They discuss how some institutions are beginning to consider factors beyond credit scores, such as manual underwriting for mortgages or prepaid options for utility services.

“You don’t need a credit score, but we live in a society that makes it fast and easy if you do.”

“Cash in hand will dominate, will overpower, will put the credit score to the grave if you’ve got the money.”

“You want to do business with somebody that looks at you and says, ‘Oh no FICO, but you’ve got $30,000 to put down, we can work with that.'”

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