Going into Debt To Build a Credit Score? George Kamel Says You Don’t Have To ‘Play the Game’
Written by
Jennifer Taylor
Edited by
Zuri Anderson
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Your credit score is considered a reflection of your financial health. However, George Kamel has a different mindset.
In a recent YouTube video, the Ramsey personality explained why he believes credit scores aren’t actually important. In fact, he’s actually credit invisible, meaning he doesn’t have a credit history with any of the three major reporting agencies.
“The credit score is an ingenious way for lenders to lure you deeper into their web of debt, while convincing you that you’re doing great with money,” he said. “And this little game has caused so many people to fall for debt traps and held them back from building true wealth.”
Kamel said many people believe they need to play the “credit score game” — i.e., working to earn a higher credit score to have access to more debt, to buy things they can’t afford, but this isn’t the case. In fact, he said you don’t actually one at all.
GOBankingRates breaks down what Kamel means by opting out of the credit score “game,” and if it’s possible to live without worrying about one.
Can You Live Without a Credit Score?
“You can live your life without a credit score,” he said. “In fact, living without it can help you build wealth faster.”
Personally, Kamel said that’s what happened to him.
“When you decide to pay off all of your consumer debt and cut up your credit cards, you will take back control of your greatest wealth building tool — your income,” he said. “And with that comes the welcome disappearance of your precious credit score.”
If you’re truly committed to putting debt in your rearview mirror, he said you won’t need a credit score. In fact, he said the best credit score is actually not having one at all.
Should You Become Credit Invisible?
As of the third quarter of 2024, the average credit card utilization ratio in the U.S. was 29%, according to Experian. Given this, the idea of having zero debt and not relying on credit at all might sound appealing.
However, not having a credit score can make some aspects of life more complicated.
For example, if renting a home or leasing equipment — i.e., a wireless modem or a cable box — you might have to pay a higher security deposit, according to Experian. Additionally, if you were to find yourself in a situation where you needed an emergency loan, obtaining one could be tricky.
Of course, this might not matter to you. If, like Kamel, you feel the benefits of being credit invisible outweigh any potential drawbacks, this could be the right move for you.
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