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Here are the Best Pens for Bullet Journal Lovers on a Budget

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Best pens for bullet journal

The bullet journal craze has taken the world by storm, and most of us know someone who has started one in recent months (or years). For some, the color-coded bullet lists and charts help sort through their to-do list in an easy way. If you’re going to invest time in a bullet journal, you will want to get the best bang for your buck. Below you’ll find a list of the best pens for bullet journal writing.

What is a Bullet Journal?

If you haven’t heard of the bullet journal craze, don’t worry. Because they are a fairly new trend, the history behind them is short.

Ryder Carroll, a designer based in Brooklyn, is responsible for creating the Bullet Journal method. Carrol has had ADHD his entire life and often had trouble focusing. Once he designed his first bullet journal, it helped him sort through his thoughts. It has also proven to have a positive impact on many users’ mental health.

Each page is designed to fit your preferred organizational style and can include your favorite colors. Your bullet journal can be whatever you what it to be.

Best Pens for Bullet Journal Writing (Under $20)

That being said, bullet journals can get pricey. If you’re using your bullet journal to track your savings or other finances, it seems a little hypocritical to spend a ton of cash on journals and pens. Here are a few of the best pens for bullet journal writing on Amazon (and a few budget journals too).

If you’re really strapped for cash, you can find decent bullet journal pens on Amazon for less than $10. Here are a few to consider.

Journal Planner Pens (18 Count) $8.99


This pack of pens comes with 18 colors and is truly one of the best pen packs for the money. Some reviews do comment that some of the pens don’t last as long, but if you’re trying bullet journaling for the first time, these are a good price!

24 Dual Tip Fine Point Bullet Journal Pens $10.99


On Amazon, you can grab a 24-count set of bullet journal pens for $10.99. For many, this is the perfect number of pens to get started with. Additionally, they have decent user reviews!

36-Count Smart Colored Pens $13.99


For a few dollars more, you can get a large pack of 36 pens. According to Amazon reviews, the pens work really well for calendars, note-taking, and (of course) bullet journals.

Fineliner Pens (48 Count) $14.95


For finer writing and coloring jobs, these pens are fantastic. In addition to being good quality and a good price, you also get a case for your pens.

The Most Bang For Your Buck – 60 Count Pens $15.99


Of the pens on this list, this set gives you the most bang for your buck. You can get 60 fine-tipped journaling pens for just $15.99.

Using Your Bullet Journal to ImproveYour Finances

You can use bullet journals to track literally anything. Whether you want to track some sort of progress, or you want to track your food or water intake, a bullet journal can be a way to organize your life. They can even help to sort your finances. Here are a few ways to get your money right with a bullet journal.

  • Bullet journal budget tracking – Jot down your monthly budget in your bullet journal. You can reference this throughout the month to stay on track.
  • Track your savings – Set a savings goal and track every dollar you put in in your bullet journal. You can visualize your savings and, for some, it is a great source of motivation.
  • Pay off your debt – Snowball your debt and track it in your bullet journal. List your debts smallest to largest and then update it as you make payments and pay off debt. This is a great way to stay motivated on your debt freedom journey!

Readers, do you bullet journal? How has it helped you organize your life?

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How to Start a Lending Library for Your Church or Other Organization

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how to start a lending library

Public libraries are great money savers for readers, but what can you do if your reading interests are more specialized than those of the general public? Many community organizations, historical societies, and places of worship offer small libraries of special-interest materials for their members. If your organization does not have a lending library, consider starting one of your own. Here’s how.

How to Start a Lending Library

You already share interests with your fellow SCUBA divers or philatelists; why not share your books? Bed and breakfast owners might also consider offering their guests a small selection of reading material to enjoy during their stays. Starting a library is not as expensive or time-consuming as it sounds. Specialized library supplies can be replaced with common office supplies, and a small collection doesn’t require an elaborate cataloging system.

Begin by asking members of your organization to donate books and other media on your subject of interest. You may wind up with some items that are outdated or in poor condition, but you will most likely get some generous donations, as well. You can also ask for monetary donations to buy new materials; if you do, ask the group for recommendations on the best books and videos on the subject.

Once you have enough materials to start a library, decide how you want to organize them, how you want to let people know what’s available, and how to manage the circulation. You can also consider promoting the library by writing reviews of items available for checkout in the organization’s newsletter.

Organizing the Books


This can be as simple as placing them in alphabetical order by author, or as complex as using the Library of Congress cataloging system. When I put together the library for our church, I alphabetized the fiction books and used the Dewey Decimal system for the non-fiction so that people could find books on similar subjects next to each other. (I searched the public library’s catalog for the same or similar books to get the appropriate Dewey Decimal number.) You can group materials by subject on the shelves and alphabetize within the subject.

Cataloging

A library of more than a hundred items or so should have a catalog to let people know what the library owns. Sophisticated cataloging software is available, or if you have a volunteer with computer skills, you can customize an ordinary database for the library’s catalog. There’s always the low-tech route, too—for our church library, we use index cards for a card catalog and place the cards in a box.

Each database entry or catalog card should include, at the minimum, the item’s title, author, and location on the shelf. I would also include publication date, publisher name, series, and subjects. The Library of Congress has a list of formal subject headings used by public and academic libraries, but you may choose to devise a set of subject headings that better suit your organization’s membership. (For example, the formal subject heading for books on the theology of end times uses the word “Eschatology,” but few members of our congregation have formal theological training, so our catalog cards say, “End times.”) I recommend keeping a list of subject headings so that the terminology is consistent throughout the catalog.

People may search for a book by its title, author, subject, or series, so be sure any computerized database is searchable in these areas. If you are using index cards for the catalog, make a separate card for each and alphabetize them all together.

Keeping Track of the Books

To manage the circulation (keep track of what’s checked out), you may either choose to set hours of operation and have volunteers staff the library, or you may design a self-checkout system that allows people to access the library at any time. If you choose the latter, it’s unlikely that you will be able to collect any fines, but you should still decide on and post guidelines for how long readers can check out items so that no one has to wait too long for a popular book or DVD. If you choose a self-checkout system, you might also consider holding orientation sessions (especially when the library is new) to let people know what’s available and how to check it out.

Preparing the Books

You can prepare materials to add to the library at a relatively low cost with items from an office supply store. To start our church library, I used address labels, envelopes, index cards, rubber cement, and contact paper. I printed out labels with the church’s name on it to place on the title page and labels with the book’s shelf location (Dewey Decimal number or first three letters of the author’s name) to place on the spine. On hardcover books, CDs, videos, and DVDs, I covered the spine label with contact paper; on paperbacks, I covered the entire spine and the vertical cover edges with contact paper (to reduce the wear that comes with multiple readings).

I then took a small envelope, cut off the top half of the flap side of the envelope, and sealed the bottom half to create a card envelope, which I glued in the back of the book using rubber cement. I wrote the title of the book on an index card with columns for people to write their names, phone numbers, and due date beneath the title and placed the card in the envelope pocket. (Caution: If your library is open to the public, learn about any applicable privacy laws before using cards with personal information on them.) Library users can take out this card and place it in a second box to indicate that the book was checked out.

Maintaining Your Lending Library

If you expect your library to grow beyond the original collection, you should also consider how you will handle donations and/or budget to buy new books, as well as how you will hold library users responsible if they do not return an item. (Will you expect them to pay to replace it with an identical item, ask them to donate a similar item, or just tell them to keep it and enjoy it?) Think, too, about what you will do if the library grows too big: will you weed out old books or find more storage space?

Each lending library has different needs, and each librarian or library committee (which may be just you) will have different ways of meeting those needs. Whatever decisions you make about how to operate your organization’s library, you will find that a little work and a small budget can create a valuable resource for everyone in your organization. As a bonus, you (the librarian) will often get to be the first person to read any interesting books donated to the cause!

Have you started a lending library and have any tips? Share with us in the comments below!

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How Much Does a Divorce Really Cost?

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how much does a divorce cost

Most people know divorce can be costly. Along with having to divide a couple’s assets, both parties have to contend with a variety of expenses, including costs such as filing fees, lawyers, and certain services. If you want to know how much a divorce costs, here’s how to estimate what you may need to pay.

How Much Does the Average Divorce Cost?

A typical divorce in the United States costs around $15,500. The average hourly rate for a divorce lawyer comes in at $250.

However, there are a lot of factors that determine how much a divorce costs. In some cases, it is possible to get a divorce for less than $500. In others, it can cost $30,000 or more to divorce a spouse.

The Factors That Determine the Cost of a Divorce

How much a divorce costs depends on a variety of factors. For example, where you are getting a divorce plays a role, as different states (and even counties) may charge different fees.

Additionally, if you opt for a do-it-yourself divorce, you’ll spend less than if you need to hire a lawyer. Similarly, deciding to use mediation or a collaborative divorce may be less costly than the traditional approach.

Whether you have children or not also impacts the final price tag. Plus, if you and your spouse generally agree on the major points, such as the division of assets, child support and custody arrangements, and similar considerations, the process may be less expensive than it the situation is more contentious.

The need to go to trial also makes a divorce more expensive. If you can avoid going to trial, you can save money on your divorce.

How Much Does the Least Expensive Divorce Cost?

While the actual cost varies by location, a divorce can cost $500 or less. However, both parties must agree on all major issues, a circumstance known as an uncontested divorce. Additionally, one of the parties will need to create their own divorce papers.

Usually, fill in the blank divorce papers can be purchased as part of a kit or you can use an online service to draft your own paperwork for a fee. In some cases, you can actually get a packet from your local court or state website for free or merely for the cost of printing, allowing you to save as much as possible.

Once the documents are ready, the person filing will need to pay a filing fee. These vary by state. In California, one of the most expensive states for filing for divorce, filing a petition for dissolution of marriage costs generally costs $435. In Mississippi, the cost is only $113.

However, if the filing fee is genuinely unaffordable, many states allow you to submit a form and request a waiver. Usually, you will have to show proof of financial hardship to qualify for a waiver, though it is worth pursuing if you are a low-income household or experiencing significant financial difficulties.

You also need to pay a fee to have the other party served with the papers. Again, this typically varies, though isn’t as costly as the filing fee.

Hiring a Lawyer to Handle Your Divorce

When you need to hire a lawyer to assist during your divorce, the lost goes up dramatically. In most cases, attorneys charge by the hour, so your exact cost will vary depending on the amount of work they have to do to handle your case.

Hourly rates for lawyers are commonly several hundred dollars, with some even exceeding $500 an hour. They usually charge for a variety of activities, including the time spent on phone calls, emails, text messages, paperwork preparation, legal research, preparing for depositions and discovery, preparing for court, and representing you on the day of your hearing.

However, you do not have to use a lawyer for every part of your divorce. For example, you can opt to only use an attorney for the creation of your paperwork, allowing you to gain access to their expertise for just that task.

Other Costs: Mediation or a Collaborative Divorce

Using mediation or collaborative divorce is less expensive than the traditional option that involves going to trial. If you go the mediation route, you and your spouse get together with a neutral third party who helps you resolve any disputes.

If you choose a collaborative divorce, both parties will need an attorney. However, you will attend meetings together instead of going to trial, working to resolve any issues until an agreement is reached.

The cost for mediation or a collaborative divorce can range from a few thousand dollars to $9,000 or more, depending on how complex the case is and how many meetings are necessary. But, in most cases, it is cheaper than going to trial.

What If We Have Children?

If you have children, you can use any of the options above to get divorced. However, it makes the case more complex as you have to address items like custody agreements, visitation, and child support.

Essentially, if you have kids, expect it to cost more than if you were a couple without children. The only exception may be if you choose to use the do-it-yourself approach, though there could still be additional fees or requirements that add to the overall cost.

Is a Legal Separation Cheaper Than a Divorce?

In many instances, a legal separation costs about the same as a divorce. You still have to create formal documents and file with the court, so those charges are usually similar to those associated with a divorce. Similarly, if you use mediation or lawyers to come to an agreement, you won’t be charged less just because it isn’t a divorce.

However, if you believe that you may reconcile, then a legal separation may be a better option. With a legal separation, you remain legally married but are able to create separation between your lives formally. Under this agreement, you are not allowed to get remarried unless you choose to divorce. You also have legal rights to inherit from one another and to certain benefits, like Social Security.

Plus, a legal separation is reversible. If you resolve your issues and wish to reconcile, you can file to remove the legal separation. With a divorce, the dissolution of the marriage is final. If you ultimately reconcile, you would have to remarry legally to reestablish the union.

Are you divorced? How much did getting divorced cost you? Share your experience in the comments below.

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You Need More Than Money to Join the Upper Class

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join the upper class

I used to think social class was directly tied to wealth — if you were rich, you were upper class; if you were poor, you were lower class. If you were neither rich nor poor, you were middle class. Of course, even then I had a sense that because “rich” and “poor” are such relative terms, a rich person has more money than I do, a poor person has less, that most of us think of ourselves as middle class even if we’re not.

My parents own a home in a retirement community in Florida. The people there dress down, get involved in all kinds of activities — everything from a kitchen band (whose members play utensils like instruments) to a rowing crew — and are generally pretty friendly. You might consider them middle class, but many have accumulated more wealth than the average American, and they maintain two homes, one in Florida and one up north.

Upper Class vs. Middle Class

Once when we visited my parents, my husband and I drove to a nearby community (also inhabited mostly by retirees) for dinner. The entire atmosphere there was different. Everything about the neighborhood shouted, “Upper class!” The buildings were fancier, the clothes dressier, and the people not as friendly. My parents’ neighborhood has several athletic courts, a community building, and boat docks; the other community boasts several blocks of restaurants and boutique shops. As we strolled down the streets, where I felt a bit uncomfortable in my middle-class clothes, it struck me that many of the people who lived there could have a lower net worth than my parents and their neighbors. They might be upper class, but they are not necessarily wealthy — in fact, they could be deep in debt.

Social Class is More Than Just Your Net Worth

I finally realized that social class is not just about how much money you have, but also about how you spend your money and how you present yourself. Earning a high salary is not enough to break the bonds of social class, nor is winning the lottery. Those who are born to the upper class have the advantages of being taught from infancy upper-class social skills and vocabulary and of being surrounded by the things (clothes, furnishings, etc.) that signify good taste. Anyone who wants to be a part of the upper class, but is born in a lower class, must be a sharp observer who can understand and imitate the social graces of the upper classes. (Incidentally, those of us in the middle and lower classes also learn the social skills, vocabulary, and tastes of our respective classes, but few people try to imitate us.)

Class and wealth are closely related, and it’s unlikely that someone in the upper class is broke or that someone in the lower class is a millionaire. If you knew that Bill had $10 million net worth and Bob had $10 net worth, you could probably guess which class each belonged to. However, Bill might wear his hair in a mullet, decorate his home with velvet Elvises, and invite all his friends over for NASCAR parties, while Bob makes a high salary but spends it immediately to pay the mortgages on three homes, a vacation in Europe, and new Dolce & Gabbana suits.

Do Appearances Matter?

A reader commented that looking poor may prevent you from socializing with wealthy people, who can help you increase your own wealth. This argument has some merit. Appearances and actions do mark us as members of a particular social class and, in some sense, actually make us part of one class or another. However, not all wealthy people are part of the upper class, and not all upper-class wealthy people will refuse to socialize with you just because you are not wealthy or upper-class, as well.

Many middle-class people and even some lower-class people have accumulated a great deal of wealth. Socializing with wealthy people of the class in which you feel comfortable can be of more benefit to you than trying to fit in with a group of people who not only make more but also spend more than you do. Middle-class, wealthy people have contacts who can help you find a better job; they also know how to save and invest the money they do earn. Advice from them could be even more valuable than advice from someone who spends their income on all the trappings of the upper class.

I often wonder why so many people think upward mobility is a goal worth the effort. To fit in with the upper class, not only would I have to learn how to act differently from the way I grew up, but I would also have to spend a lot of money on the right clothes, the right car, the right home, and the right education. And even if I do learn to fit in with members of the upper class and benefit from their wealth-gaining insight, I still might not be able to increase my income enough to cover the extra expenses.

Why Do People Overspend On Upward Mobility?

Juliet B. Schor, The Overspent AmericanJuliet B. Schor, in her book The Overspent American, argues that we spend more money on socially visible goods, largely because we fear “falling down” to a lower class. Ironically, overspending almost guarantees that we will fall if we lose our source of income. If we already spent all our money to buy prestige, we would have nothing left to buy necessities. I wonder why we don’t fear climbing up the social ladder instead. After all, it costs a lot to live like someone in the upper class. Plus, moving into a new social class requires a new way of presenting ourselves, and when that happens, there’s no guarantee that we will still feel comfortable with our old friends in the social class where we used to be at home.

I’m not arguing for a caste system. I certainly believe we should be free to move from one social class to another, and I enjoy interacting with people from all social classes. I also have nothing against anyone whose goal is to be part of the upper class. But I, for one, am happy in the middle class. I’d rather maintain my position here, where I already feel comfortable being myself, and maybe one day I will have enough money to retire to a nice, middle-class retirement community in Florida.

Photo credit: Flicker.com/ caribb

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10 Important Things Money Can’t Buy

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things money cant buy
We talk a lot about money: How to get it, how to spend it, where to spend it, and how to save it. For all the time we devote to talking about, worrying about, and dealing with money, you’d think it was the most important thing in the world. If the time spent obsessing about money truly equated to its worth, there would be nothing you couldn’t do or have without money. Money would be the only thing that mattered. But is money really as valuable as our obsession level leads us to believe?

Money Can’t Buy Everything

Money is important, obviously. Without it we’d have no roof over our heads, food in our bellies or clothes on our backs. Money allows us to do and have more things than we can without it. It’s a means to an end. But, for all that money is useful and good to have around, for all that it can buy, there are quite a few things that it can’t buy. Even if you have millions of dollars, there are some things you’ll never have with money alone. So what can’t money buy? Here’s 10.

1. Lost Time

Money cannot buy back lost time. As each day passes, it is lost and you can never get it back. When you miss that chance to say, “I love you,” to someone special, or you tell your kids, “Not now, I have to work,” that opportunity is gone. No amount of money that you make in the future will get that day, that moment, back.

2. Happiness

It’s a cliche that money can’t buy happiness, but it’s also true. It can buy you some fun and fleeting joy-a cool vacation, a big TV, a fast car-but it can’t buy the true happiness that comes from liking yourself, having stable relationships, and good a familial support system.

3. Happy, Well-Adjusted Kids

Money can buy your kids a lot of clothes, toys, and gizmos, but it can’t turn them into secure, responsible, well-mannered, intelligent people. That only comes from the time you spend with them and the things you teach them. Money might help with some aspects of parenting, but it’s been proven many times that kids, once their basic needs are met, benefit more from parents spending time with them than the amount of money spent on them.

4. Love

It’s another cliche that money can’t buy love, but a true one. Money can buy initial attraction or even lust, but “true” love comes from mutual respect, caring for each other, sharing experiences, and growing together. There’s a reason that people who marry only for money rarely end up happy. Love at it’s best functions regardless of whether you have a lot of money or very little.

5. Acceptance

True, you can buy things that make you fit in-the latest cars, clothes, shoes, or electronics — but these things don’t represent true acceptance. If you really want your peers to accept you (beyond high school where a pair of shoes really does make you part of the in crowd), you’d do better to focus your energies on making yourself valuable to those around you. Being a good friend, a kind and helpful person, and someone who excels at what they do will go further in gaining acceptance than the stuff money can buy.

6. Health

Money can buy healthcare and medicine, but it cannot replace health once it’s lost. It’s far better to take preventative action such as watching what you eat, exercising, not smoking, and getting regular physicals than to rely on money to save you once your body has started to fail you. Money also can’t buy back your youth. No amount of money you make in the future will replace those days when your body could do anything easily and look good doing it. You can spend thousands on “treatments” to preserve your youth, but it’s an illusion. Once your youth is gone, no amount of money will get it back.

7. Success

Some people succeed by being slimy and paying/bribing their way to the top. But these are the exceptions, and I would hope you wouldn’t aspire to that. Success comes from hard work, applying your gifts in the best way possible, and paying your dues to move ahead in the world. There is very little that money can buy you to help you succeed. It might be able to buy you some training or equipment, but the majority of your success is determined by the work you put in, not the money you spend.

8. Talent

People are born with certain talents. Money can certainly nurture a talent. You can buy music lessons or coaching sessions to nurture your talents, but money cannot buy a talent. You can learn to do certain things well — I’ve learned to play the piano after years of lessons — but you can’t buy the true gift to do it well. Even after years of lessons, I don’t have the ability to make the piano truly sing, whereas others in my family have had that talent from birth.

9. Class/Manners

There are plenty of rich people who are rude and crude and plenty of poor people who demonstrate perfect manners and respect for others. And vice-versa. The amount of money you have doesn’t determine whether you behave well or poorly. You can’t buy manners and classy behavior; parents and family members who want to see their offspring behave well in society teach and practice it at all levels of society. Money doesn’t confer good behavior. Money can buy you entry into a better class position, but it cannot make you behave with class.

10. Peace

If money could buy peace, I think we’d be there by now. Think of the amount of money that governments have spent over the years in the name of “peace.” Has it worked? Nope. Peace isn’t something you buy. I think peace only comes from acting fairly, humanely, and treating others (people and countries) as we would want to be treated. And even then, it might not be possible. But for sure money won’t buy it.

Considering What’s Really Important

I’m not suggesting you give up the pursuit of money and go on some monastic quest for deeper meaning. It is important to manage your money well, to educate yourself about money, and earn enough to secure your financial future. However, it pays to stop and think every now and then about the things you would still have even if you didn’t have money. How much money you have doesn’t determine your family, your health, and your gifts and abilities. There are things that no amount of money can buy and it’s worthwhile to pursue them even as you worry about money. Money is important, but maybe it’s not the most important thing in the world.

Is there anything else money can’t buy? Share with us in the comments below!

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(Photo Credit: Flicker.com/Photo4jenifer)

21 Reasons Dave Ramsey Sucks at Giving Credit Score Advice

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Dave Ramsey credit cards

There are huge disadvantages of having no credit score. I actually know this better than most. After living over ten years in Japan, I came back to the US naively assuming that the credit history I had built over there would transfer back to the US. That wasn’t the case and I found myself having to deal with numerous situations without a credit score. From my personal experience of having to deal with all the negatives that come with having no credit score, as well as knowing a number of others who experienced a similar situation to me when they returned, I can say with conviction that Dave Ramsey gives horrible credit score advice.

For those unfamiliar, Dave Ramsey refers to a credit score as the “I-Love-Debt Score” and makes the statement that “the only way to have a good credit score is to go into debt, stay in debt, and continually pay your accounts perfectly — without adding too much debt or paying too much off. In other words, stay in debt for as long as you can.” This is patently false as I currently have no debt whatsoever and yet have a good credit score. Others do too.

He then advises that since you are working to become debt free, once you reach that goal you “…don’t need a credit score, anyway, since you don’t plan on using credit!” While this might sound nice, I can attest that even when you are debt free, a good credit score comes in extremely handy. I would even argue that having one is essential if you want to truly be financially savvy since it can save you a lot of money. If you care about getting the most out of your money, a credit score, whether we like it or not, is important to have.

While you may have heard some of the below arguments before regarding why a credit score can be important, my guess is that some of my arguments you may never have considered before. Below are 21 reasons that it’s important to keep a good credit score even if you’re debt free (and why Dave Ramsey sucks at giving credit score advice).

Wasted Time

This one is huge and one that I rarely see mentioned. I can’t over emphasize this point enough, and I would argue for this reason alone, you want to keep a good credit score. Not having one will mean that you will have to spend a lot more time when it comes to numerous financial situations, including any of the ones mentioned below. If you believe that your time is worth something as I do, wasted time can be a huge cost. Even when you are able to get what you want, you usually have to spend a lot more time explaining why you don’t have a credit score even though you don’t have any debt. I had to spend countless extra hours, many being extremely frustrating, sorting out my financial situation which should have been straight forward and simple all because I had no credit history.

Difficulties Even When Successful

Another problem with having no credit score is that even when you successfully get what you want, it’s much more difficult to get it than if you had a good credit score. Not having a credit score often means going through several layers of management until you can reach someone who will approve what you need. The fact is that for most entry-level employees, if anything isn’t exactly correct, they can’t approve it. That means that people who don’t have credit scores have to work much harder to get things than others that have a good credit score can get without any hassles.

Poor Customer Service

This is another aspect of not having a credit score that is often not mentioned, but the reality is that if you have no credit score, you don’t get treated nearly as well in many situations as you do when you have a good credit. When institutions look up my credit these days, they always seem to come back with a smile and an attitude that they are willing to do anything they can to help me. When I had no credit score, they always came back with concerned looks and a demeanor telling me that it was going to be difficult to help me even if they did the best that they could. The fact is, having a good score means that you will get better treatment from anyone who looks it up.

Lack of Financial Flexibility

Having a good credit score gives you a lot of financial flexibility that isn’t available for those with no credit score. When you have a good credit score, there are many financial institutions that want to work with you. That’s not the case when you have no credit score. Having a quality credit score means that you can get a much better deal when it come to virtually any financial transaction than you could get with no credit score at all. When the unexpected happens and you need to get funds for something that you had never anticipated, you simply have more flexibility in getting them than you do without a score to your name. This include the flexibility of financially helping out others if you choose to do so.

Increase Large Transaction Risks

One of the things that I immediately realized when I was still trying to get a credit card (which I was having trouble doing because I didn’t have a credit score) was the additional risk that came when making large purchases. I have always put the purchase of my airline tickets on credit cards because years ago I had a ticket on an airline that suddenly went bankrupt. Since I had made the purchase with a credit card, the credit card company refunded the amount back to me since I never received the service I had paid for. Had I not paid with a credit card in that instance, I would have simply lost the money. I had to make a number of large purchases upon arriving back in the US and although I was able to make them in other ways, I felt a bit uneasy knowing that if things went wrong, I really had no protection simply due to the lack of a credit rating.

Emergency Cash

Having lived through the Great Hanshin Earthquake (along with a number of smaller natural disasters), I know the importance of having access to emergency funds. When these disasters happen, it’s often impossible to get access to money that you have in your bank account (in the case of the Hanshin Earthquake, it was over 2 weeks before I had access to those funds). It helps to have cash in the days immediately after the disaster when many of the electronic transaction systems are down, but it also helps to have a credit card. During that time, my credit card was a lifesaver in securing a hotel room and other needs when I needed to spend thousands of dollars to get out of the city and find other lodging, but still didn’t have access to my bank accounts. Living in an area of the US where I knew a similar disaster could take place, I found that I needed to keep a lot more cash on hand in case of an emergency. I ended up losing interest on the cash I took out of the bank account plus there was the risk that it might get stolen, or in an emergency I wouldn’t be able to get to where I kept it in my house. Even with a large amount of cash on hand, I still felt my financial preparation was far from adequate had a true emergency happened. That is not the case now that I have good credit and credit cards.

Debit Cards Have Drawbacks

It’s often argued that there really is no need to have credit cards if you have a debit card, but in my experience, there are some definite drawbacks to this argument. I had a friend who had his debit card stolen and his account compromised. While he eventually got all the money that was taken out of his account back, his account ended up being frozen for a few weeks while an investigation took place. During this time, he had no access to any of his banking funds. As mentioned above, in an emergency you might need to access more funds than are in your debit card account with no way to transfer additional funds to it. It also doesn’t cover you with large transactions like an airline ticket refund if an airline goes bankrupt.

Difficulty Getting Security Clearance

One of my friends who came back after living overseas for a number of years landed a great job, but the job required security clearance. The lack of a credit score turned out to be a major stumbling block for him to get his clearance. He eventually did, but it took a lot of time and effort since his lack of one sent up a red flag, and even ended up meaning much more scrutiny in other areas of his life as well to get the clearance. Again, if you consider time and aggravation as a cost, then there is a definite one when you don’t have a score to your name.

Difficulty Getting an Apartment

I remember talking with one apartment manager when returning to the US that told me as soon as I mentioned that I didn’t have a credit score that I wouldn’t get approved for an apartment in his complex. He explained that there was high demand for the apartments so it simply wasn’t worth the risk to management even though I had a good explanation as to why I didn’t have one. While I did eventually find an apartment, the lack of a score caused some type of issue at each complex I looked at, making the entire process much more difficult than it ever should have been, and definitely much more so than if mine had been good.

The Possibility of Divorce

Nobody ever thinks they are going to get divorced when they first get married, but the truth of the matter is a high percentage of couples do. If you go into a divorce without a credit score, this can cause a number of issue both during and after. When people believe that they will never have to take out another loan when they become debt free, they are probably at a point where they never think they will get divorced either. The problem with divorce is that it can be an extremely expensive process and can quickly wipe out any savings and emergency funds that you might have had. Once divorced, financial circumstances can greatly change to where loans you thought you would once never need, might be needed to bridge gaps until you can create a new budget for your new reality. Hiring lawyers, finding a new job, getting a new place to live all become more difficult without a score in an already stressful time.

Difficulty Getting Loan Approval

If there is ever a situation when you need a loan, not having a credit score will make it many times more difficult to secure it than if you have a good credit. The thing is, even if you anticipate never needing to get another loan again, circumstances change and life could place a wrench into your best laid plans. Even if you are debt free at a moment and don’t anticipate ever needing a loan, that can quickly change if you unexpectedly lose a job and are unable to find a new one as quickly as you hoped. Life throws curve balls from time to time and if you are thrown one without a good credit to your name, recovering from it can be a lot more difficult than if you had it.

A More Expensive Mortgage

If you need to take out a mortgage, you will end up paying much more if you don’t have a credit score. The problem is that no credit score is equivalent to a bad credit score to most lending institutions. If they have no records that you can pay off your debts, they assume the worst and assume that you can’t. This means no score is the same as having a terrible score in the eyes of lending institutions. While you still may be able to secure a loan (and you may not), you will end up having to pay a larger interest rate to do it which can mean paying tens of thousands of dollars more over the lifetime of the loan.

Difficulty Securing Utility Services

When I needed to get utilities in my name after returning from Japan, I couldn’t just call and have them turned on like I expected. Several required me to pay a deposit in order to put the service in my name since I had no credit history of paying these bills in the past. It makes for an extra step in the process, it takes more time to get the service and you lose the interest that you could have earned from the money that you must give as a deposit.

Trouble Getting a Cell Phone Contract

Upon my return to the US, I was actually denied the first cell phone contract I tried to get due to no credit history. I was eventually able to secure one, but I ended up having to pay a deposit to do so much like I had to when it came to the utilities. While the deposit wasn’t a huge amount, I did lose the interest that I could have been earning on it. Far more frustrating was the extra time and headaches (and the costs associated with them) caused by not having a score that would have never come into play if I had a good one.

Possible Negative Effect on Job Opportunities

One thing that many people fail to realize is that as many as 70% of companies will check the credit history of a candidate for a job before they hire. With so many qualified people in the job market these days, it’s often the little things that end up determining who gets hired. A lack of a credit score compared with someone with the same qualifications that has a stellar one could be the difference in who gets the job. Similar small details can make the difference on promotions within certain corporations, especially for sensitive positions. If you lose a job or are passed over a promotion, that can mean thousands of dollars in lost income.

Pay More for a Car

There have been a number of surveys over the years that show that some car dealers have a tiered system on how much they mark-up a car depending on the credit score of the individual buying the car. Those who are deemed the least credit worthy, which would include those with no credit score, can be charged as much as 3.5% more for a car than those with top scores. This has nothing to do with the interest rate on a car loan, but the actual amount that is charged for the car. That means that even if you don’t need a car loan, you can potentially end up paying more for a car when you don’t have a score.

Another way that lack of a score can cost you more, as pointed out by Anni in the comments, is that you can often get dealer discounts by financing a car worth thousands of dollars, then pay off the car loan soon after. I know that this situation arises because I did it once for one of my car purchases. I had the cash to purchase the car in full, but there was a deal to save $2000 through the credit section of the car maker if I agreed to finance the car, so it made good financial sense to do so. I took the $2000 discount and the loan, but as soon as the $2000 credit came through, I paid off the entire loan. The key here is that to take advantage of these car maker financing discounts, you have to qualify for them, and if you don’t have a credit score, you’re not likely to do so.

A More Expensive Car Loan

If you do need to take out a car loan, you will end up paying thousands of dollars more in interest charges with no score than you would with a good one. Interest rates for those with good credit are usually in the low single digits, while those without will pay double-digit interest rates on the exact same loan. While you may not think you will ever need to take out a loan again, something that you never expected like a divorce or a lost job could result in you needing to get one.

More Expensive Insurance

The insurance industry is in the business of assessing risk. They look at a wide variety of things to determine the risks of the individuals and families that use their services. One of the things that they look at is your credit score. Having one that is poor makes you a higher risk than an individual who has one that is high. The problem is that having no score doesn’t allow them to determine whether you are a higher or lower risk, so they will always make the assumption that you are a higher risk when the risk is unknown. What that all means is that if you have no score, you will end up paying more for life insurance, car insurance and homeowners insurance than you would if you hade a good score.

Difficulty Getting a Credit Card

One of the things that Dave Ramsey says is that you don’t want credit cards, but this is only true if you can’t control yourself. The truth is that credit cards are only a disadvantage if you don’t pay them off fully each month. Once you are out of debt and have built an emergency fund so that there is no need to put expenses on your credit card that you can’t pay off in full each month, credit cards are actually a financially savvy tool to use. They give you insurance in many transactions you may not have otherwise, they may provide additional insurance for you with certain purchases such as airline tickets and car rentals, and they can even pay you cash back for purchases you would otherwise make. The problem is that if you ever find yourself in a situation where you need a credit card, but you don’t have a score, it can be extremely difficult to get one. Even when you do, you can expect to have a very low credit limit that will take years to grow to where it can be useful for larger purchases. I know because the only credit card I could qualify for when I returned was with a bank that I had been with for over 20 years, and they still would only give me one with a $500 limit to start.

Difficulty Getting School Loans

If you ever decide to go back to school, having no score can make it difficult to secure loans. Again, many assume that they will never need to go to school again, but further education might be the only way to secure a job if you happened to lose the one you have. If you can’t qualify for student loans from your school or federally funded loans to pay for your education, you will have to turn to private loans which have interest rates much higher and can end up costing you thousands of dollar more for the same education.

Difficulty Getting Business Loans

If at any time you decide that you would like to start a business, not having a score can hurt you financially in trying to secure a loan for the business. When banks give business loans to individuals, they want to see that they have a track record of paying out the other loans that they have taken out. With no score to your name, that record doesn’t exist and you become a greater risk to give a business loan to. With no score, you might not be able to qualify for one at all without putting up a large amount of collateral, and even if you do, you are likely to pay a higher interest rate on the loan than if you had good credit. You will definitely have a much more difficult time securing the loan which can mean many more hours (if not days) trying to get the money you need.

Dave Ramsey gives lousy credit score advice because he fails to take into account that life can get messy in ways that we never anticipate. In addition, he doesn’t take into account the costs associated with the extra time and aggravations that can come with not having a score. If it were true that you needed to always remain in debt in order to have a good credit score as he states, I might give him some slack, but the fact is that this statement is patently false, I know because I’m currently debt free with a good score. While I’m certainly not saying that all the advice that he gives is bad, the advice he gives regarding credit scores sucks.

Finally, if you don’t like my analysis and want to see what Dave Ramsey has to say, think about getting a copy of his book The Total Money Makeover. The book is an combination of educational handbook, inspirational coaching guide and self study manual. It has sold something like 5 million copies – so its a good example of his best work.