Pick Your Community: | Hopkins | Muhlenberg | Daviess | Christian | Fayette | Henderson | Lakes | McCracken | Warren | 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.

Most Read This Week (Site-Wide)

August 21, 2014 5471

Muhlenberg Task Force on Trail of Home…

in News by Wes Miller
August 18, 2014 4410

Man Injured in Early Morning WKP Accident

in Top Stories by Rita Dukes Smith, SurfKY News Director
August 18, 2014 4159

Owensboro Board of Commissioners…

in News by Beth Cecil
August 20, 2014 3951

Park Avenue Trespass Call Leads to…

in Top Stories by Madisonville Police Department
August 18, 2014 3946

Unlawful Solicitation

in News by Sgt. J.D. Winkler

Most Read Stories from Hopkins County

August 20, 2014 3951

Park Avenue Trespass Call Leads to…

in Top Stories by Madisonville Police Department
August 18, 2014 2694

Madisonville Man Charged for Shoplifting,…

in Top Stories by Madisonville Police Department
August 21, 2014 1833

Pedestrian Struck on East Arch Street,…

in Top Stories by Officer Ryan Clark
August 20, 2014 1657

Dawson Springs Woman Arrested for Driving…

in Top Stories by SurfKY News
August 18, 2014 1470

Madisonville Firefighters Recognized for…

in Top Stories by Rita Dukes Smith, SurfKY News Director

Most Read Stories from Owensboro

August 18, 2014 4159

Owensboro Board of Commissioners…

in News by Beth Cecil
August 18, 2014 3946

Unlawful Solicitation

in News by Sgt. J.D. Winkler
August 18, 2014 3830

RiverArtes Opening at OMFA

in News by Owensboro Museum of Fine Art
August 19, 2014 3297

Free Arthritis Exercise Program will be…

in News by Woody Maglinger
August 19, 2014 3216

Municipal Art Collection on Exhibit at…

in News by Mary Bryan Hood

Most Read Stories from Muhlenberg County

August 18, 2014 4410

Man Injured in Early Morning WKP Accident

in Top Stories by Rita Dukes Smith, SurfKY News Director
August 18, 2014 3851

Luke's Flea Market Vendors' Home Away…

in Top Stories by Charles W. Riley II, SurfKY News
August 18, 2014 3651

'How Dry I Was'

in Top Stories by Rita Dukes Smith, SurfKY News Director
August 19, 2014 3164

'Another One Bites the 'Duct'

in Top Stories by Paul McRee, SurfKY News
August 19, 2014 2506

Drakesboro Woman Injured When Tree Falls…

in Top Stories by Martha Clark

SurfKY News Group, Inc. Central Office & Printing Division
1125 Nebo Rd.  •  Madisonville, KY 42431  •  270.452.2249 (fax)
Main Number: 270.452.2727 (phone)  •  Printing Division Direct Line: 270.821.8600 (phone)

SurfKY Owensboro News Bureau
920 Frederica St. / Suite 210  •  Owensboro, KY 42301  •  270.683-8060 (phone)


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

social 03social 04social 22social 21social 06