Wan’t High A Credit Score THINK AGAIN! What a 800 Credit Score Means – Building Credit

What is going on you guys my name is Daniel and welcome back to money recalled so one point in my life I used to think that 800 and higher FICO score was a really really good thing and at one point I was an idiot so let's start with the basics of just first off reframing exactly what your FICO score is so a lot of people will think of their FICO score as attached to how good with money they are you're good at paying your debts back so really what your FICO score is is the banks and institutions loaning you money know that you are a good investment you are being ranked with your FICO score exactly how much money the bank can bank on making back off of you the FICO score is really a measurement of how much you have served the bank's interest and I use the word interest intentionally because you are paying the interest back to the banks and you're in it is in their best interest to try and loan you more money when you're a good customer that pays back this interest which is how they make their money fun fact usually it's not even money that they have more often than not loans and credit cards is money that is being created given to you and then charged back to you an interest we're on this in another video fractional banking so really what a high FICO score is a stamp from the bank saying we can depend on him to further our financial interests so going back to the beginning banks don't give you money because they like you they give you money because it is making them money so back to the day it like many people I used to believe that a high FICO score actually meant that you were someone you were making good money your FICO score does not correlate to you making money any at all it does not correlate to you having a job it does not correlate you being you know financially responsible other than paying back your loans and most importantly having a high focus or does not prove that you have wealth period all having an 800 and above really proves is that you have taken out large amounts of money from the bank and you have paid them back faithfully for a long period of time so this is the exact opposite of what you want to be doing when you are trying to build up wealth and become financial freak I mean I hope I'm just really reframing this for you the way that you're looking at your FICO score right now so am I saying don't use credit cards don't go into debt period no I'm saying it is up to you to decide if it's in your best interest to actually go into this debt have those credit cards spend that extra money and remember it is a very very fine balancing act the banks and the credit card companies are there to eat you and they will and they are designed to remember there's a reason that credit cards are the number one most marketed product in the world ever is this just a coincidence no credit cards are one of the banks and financial institutions most profitable ventures so I really hope this actually helped reframe the way you look at your FICO score and help you have a new perspective on the world of Finance and remember the fastest way to actually build wealth is to be debt-free so your money is actually freed up to take on other investments that make you money and accumulate interest for you remember there's no one completely correct answer to building wealth there are principles in the past that people have used for thousands of years successfully and all you really have to do is follow them if you found this video interesting enjoyable or it helped you make sure to drop a like and subscribe