Pick Your Community: | Hopkins | Muhlenberg | Daviess | Christian | Henderson | Lakes | McCracken | Webster
Davis Motor Sales banner ad

Dave Says – April 20, 2014

dave says2 300KENTUCKY (4/20/14) — Credit Score and CD's.

Dear Dave,

I’m 20 years old, and I’m trying to get out of debt. However, I’m concerned about what might happen when I’m older and don’t have a credit score. My girlfriend says I won’t be able to get a job or rent an apartment without a good one. Is this true?

Ian

Dear Ian,

No, it’s not true. I’m sure your girlfriend is a sweet person, but she has no clue what she’s talking about in this situation.

In either case you can simply explain that reason you don’t have a credit score is because you have no debt. Since you don’t have any debt, you have something known as money. That makes you very stable, and it makes you a fantastic candidate as an employee or tenant.

Listen to me, Ian. I’m a landlord, and if I had my choice between a tenant with no debt and no credit score and someone with a high credit score but lots of debt, I’d take the one who has no debt in a heartbeat. Why? Because that’s the one who is most likely to pay.

Besides, you already have a good credit history if you’ve paid your bills on time. Show them proof of that, if necessary. But taking on a pile of debt to have a high credit score or increase your current score is just plain stupid!

—Dave


Dear Dave,

Would it be a good idea to open CD accounts for my two small children?

Abe

Dear Abe,

No. A CD is a Certificate of Deposit. Basically, they’re not much more than savings accounts which carry early withdrawal penalties. They earn about the same as a regular savings account, too, which at the moment is next to nothing. There’s no reason to open them for your kids.

Now, is it a good idea to save money on behalf of your children? Of course, it is. But if the idea is simply to teach and help them save money, I’d recommend simple savings accounts. If you’re talking about wanting to save money for them—like for a college fund—I’d suggest an Educational Savings Account with good, growth stock mutual funds inside.

Even if you want to put aside college savings, I’d urge you to go ahead and open regular savings accounts for each of them. We did that for our kids, and I can tell you from experience, you’ll find tons of teachable moments about saving, giving and life in general!

—Dave

Dave Ramsey is America’s trusted voice on money and business. He has authored four New York Times best-selling books: "Financial Peace," "More Than Enough," "The Total Money Makeover and EntreLeadership." His newest book, written with his daughter Rachel Cruze, is titled "Smart Money Smart Kids." It releases April 22. The Dave Ramsey Show is heard by more than 8 million listeners each week on more than 500 radio stations. Follow Dave on Twitter at @DaveRamsey and on the web at daveramsey.com.

Disclaimer: The content supplied by columnists and letters to the Editor on this site does not in any way, shape or form, implied or otherwise, necessarily express or suggest endorsement or support of any of such content, statement, or opinions therein. SurfKY News does not necessarily adhere to or endorse content provided by outside non-staff sources.

© Copyright 2014 SurfKY News Group, Inc. All rights reserved. This material may not be published, broadcast, or rewritten without permission. SurfKY News encourages you to share this story by using one of the social media links below.

Posted on 2/2/14

SurfKY TV

2/6/2014 - posted
3/13 - 16
Started 11/8/2013
Started 11/8/2013

Stock Report

1 DOW 16,805.41
+127.51 (0.76%)    
2 S&P 1,964.58
+13.76 (0.71%)    
3 NASDAQ 4,483.71
+30.92 (0.69%)    
2/6/2014 - posted
3/13 - 16
Started 11/8/2013
Started 11/8/2013
2/6/2014 - posted
3/13 - 16
Started 11/8/2013
Started 11/8/2013
2/6/2014 - posted
3/13 - 16
Started 11/8/2013
Started 11/8/2013

Most Read This Week

October 20, 2014 7328

Uncle Lee's in Greenville is Closing Its Doors…

in Local (Muhlenberg) Top News by www.unclelees.com
October 19, 2014 4953

Kentucky Energy Department Releases Virtual Solar…

in General News For All Sites by Dick Brown
October 21, 2014 3551

UPDATE: Pedestrian Struck by Vehicle on Shamrock…

in Local (Hopkins) Top News by Officer C.P. Haynie
October 22, 2014 3262

Hopkins County Grand Jury Indictments

in Hopkins News by Karen McKnight
October 21, 2014 3143

Madisonville Police Arrest Reports - Oct. 21, 2014

in Hopkins News by Madisonville Police Department
October 23, 2014 3046

Resident Returns Home to People Using Drugs,…

in Local (Hopkins) Top News by Madisonville Police Department
October 20, 2014 2951

Man Charged for Assaulting Pregnant Wife

in Local (Hopkins) Top News by Madisonville Police Department
October 20, 2014 2937

Hopkins County Sheriff's Arrest Reports Released

in Hopkins News by Sheila Hopper
October 22, 2014 2593

Convicted Felon Charged for Handgun Possession…

in Local (Muhlenberg) Top News by Trooper Stu Recke
October 20, 2014 2432

Paul Simon Headlines COPD Tribute for Phil Everly

in Top News For All Sites by Paul McRee, SurfKY News

Stories Trending Today

October 24, 2014 2197

Central City Man Charged with Sexual Assault on…

in Local (Muhlenberg) Top News by Chris Cooper
October 23, 2014 1908

Don Everly to be Part of Rock and Roll Hall of…

in Top News For All Sites by Paul McRee, SurfKY News
October 24, 2014 1856

Miners Turn Out in Madisonville for…

in Top News For All Sites by Rita Dukes Smith, SurfKY News Director
October 24, 2014 1803

Woman Arrested for Allegedly Reporting Check…

in Local (Hopkins) Top News by Madisonville Police Department
October 24, 2014 1615

Madisonville Police Arrest Reports - Oct. 24, 2014

in Hopkins News by Madisonville Police Department
October 24, 2014 1498

Family Looking for 'Runner'

in Hopkins News by Lisa Crook
October 24, 2014 1381

County Renews Career Advancement Lease

in Local (Muhlenberg) Top News by Charles W. Riley II, SurfKY News
October 24, 2014 1344

Baldwin, Crist and Saint Selected to 2014 Second…

in Hopkins Sports by Troy Crist
October 24, 2014 1278

Tail Light Out Traffic Stop Turns to Drug Arrest

in Local (Hopkins) Top News by Madisonville Police Department
October 23, 2014 973

Security Officer Offers Identity Theft Protection…

in Local (Hopkins) Top News by Amber Averitt, SurfKY News

SurfKY News Group, Inc.
Corporate Office & Studio
1125 Nebo Rd.  •  Madisonville, KY 42431
270.452.2727 (phone)
  •  270.452.2249 (fax)


Contact a member of our staff: www.surfky.com/contact
Copyright © 2014 SurfKY News Group, Inc.  •  Terms of Use  •  Site Map

social fbsocial twsocial yt
social gpsocial flrsocial rss