My first time shopping for an apt I was 21, no credit and I went straight to the leasing office to apply. I mentioned I didn’t have credit so I wouldn’t pull up on a credit run. She was like, no credit is better than bad credit, no worries.
To my own research In USA, individuals living in cars due to partial homelessness result from a complex interplay of factors. High housing costs relative to income, stagnant wages, and income inequality drive this issue. Job loss, weak social support, medical expenses, evictions, and lack of affordable housing also contribute, while systemic problems and inadequate policies further perpetuate the phenomenon.
Considering the present situation, diversifying by shifting investments from real estate to financial markets or gold is recommended, despite potential future home price drops. Given prevailing mortgage rates and economic uncertainty, this move is prudent, particularly due to stricter mortgage regulations. Seeking advice from a knowledgeable independent financial advisor is advisable for those seeking guidance.
I've remained in touch with a financial analyst since the start of my business. Amid today's dynamic market, the key difficulty is pinpointing the right time to buy or sell when dealing with trending stocks - a seemingly simple task but challenging in reality. My portfolio has grown by more than 5 figures within just a year, and i have entrusted my advisor with the task of determining entry and exit points.
My CFA ’Melissa Terri Swayne’ , a renowned figure in her line of work. I recommend researching her credentials further. She has many years of experience and is a valuable resource for anyone looking to navigate the financial market.
Appreciate this recommendation, hopefully I can get some insight to where the market is headed and strategies to beat the downtrend with when I hear back from Melissa.
I'm 37 year old African American woman, I've never had any landlord check my credit. I've never had an eviction. I've only used private landlords, and just proved my income and I put up 2 month's rent.
Great video! I’m totally up for a small series. Renting cars next, buying a house, getting a credit report for work/background check. I can’t think of other things that I was told I’d need a credit number for, but I would love to hear about how I actually don’t need it!
I bought a house w a zero score. I was helping coach an FPU coach and the leader told the class that you need a score for insurance. I immediately stepped in and corrected that. Absolutely not true. BAD credit will increase your payments but zero credit makes no difference
I always used a debit car for car rentals. I wouldn't anymore sense i had fraudulent charges to my bank account after renting a hotel room. It really jacked up a vacation i was on not having access to money because my account was frozen. I got a credit card after that first credit card ever at 51 years old.
@@donatelloslappafello1108 I’ve dealt w fraud w credit and debit cards. It will jack up a vacation for sure regardless if you don’t have a backup. I drove to CA to see my friend and my credit AND debit card both got shut down because of suspected fraud. I literally wasn’t sure how to pay for gas to get home. So having a credit card vs a debit card literally makes no difference. It’s the exact same hassle. Now since then (this was about 9 years ago or so), any time I’ve encounter this, it is dealt is so much faster. Regardless of it being credit or debit, you need backups when traveling.
In my case it was a little bit difficult to rent a home wihtout credit score. Some landlords wanted up to 6 months of rent upfront - which was an issue after moving to the USA. Thankfully, we were able to find a landlord that was willing to rent us without any extra conditions. This was in Austin, Texas. Oh yeah - FIRST! :D
Great video, George! Now that you have your own channel, you guys should go off an old idea you had on The Ramsey Show: where you would go undercover to a timeshare presentation and pummel them with questions to expose the shady things going on there! Just to see them squirm, haha.
So he proved the point that going through life without a credit score is more expensive. Deposits often don't come back to us, and it's not always fair. Also worth mentioning that in a if there is a competitive place, you're not going to be their top choice. They have other people with 800 scores that are a safer choice.
Thank you for making this video. Makes me feel better with applying for an apartment without a credit score for the first time! You guys are the best ❤
In Oregon certain companies will deny you with no credit score or require upwards of $7k for deposits. Our baseline deposit is one months rent but they can increase it for very arbitrary reasons. One place I looked at a while ago was $1200 rent (reasonable) but the deposits would have been $4k to move in. Absolutely insane!
George, I just want to say you are my favorite personality. Got an update: down to only 2 people I owe, my mother and sister are now on the plan, and I have 2nd round interviews on a new job!!
Thank you for making a video on this!!!! This is so clear, to the point, and helpful!! I still have relatives that believe the only way is through credit. :/ I'm glad I can share this with them now. 🎉
You also don’t have to make 3 times rent at most places if you have 6 months rent in your bank account, well at least in sd. Which was helpful as a student.
All thru high school when talking about credit cards I was told not to get a credit card, cuz ultimately they can really be something that could screw up your life and that it's just all around a bad idea. I still stick with that advice, a debit card or cash for me. I dont ever plan to own a credit card!
As someone who followed the Ramsey way growing up, this really bit me when I was moving cities a few years ago. Landlord after landlord straight-up turned me down because I had no credit score, even though I made enough to more than qualify for the apartment by every other factor. I eventually did find a place, but it simply is false to say that you don't need a credit score to rent - some places you do. Is it dumb? Absolutely. But it's still the reality in many parts of the country.
I get it, but it shouldn't be this way. If more people stop using credit then this won't be a standard. As a landlord, I used credit to know if a renter was good or not... but I found that I couldn't use credit at all because most people that rent have bad credit... it's just a fact. I ended up not even using credit and just used income and calling their past landlords as a tool.
@@src4409 so how would you treat a senior with an excellent credit score, but only pension income who is looking to test a city to see if they want to move there permanently?
@@kodomotachi1 If even one place will not rent to you unless you have a credit card, then the phrase "you don't need a credit score to rent" isn't true under all circumstances - i.e. it's a false generalization.
You just made George's point while trying to discount his message. You showed you do NOT need a credit score. He never said it was going to be seamless or smooth, just takes a little more effort - like your story!
If you have a student loan, as soon as you’re done with college they will start reporting whether you pay or not. Many people are already in the credit score game before they even know it.
That’s why they preach cash flowing your education. For one, you’ll be more likely to look at community colleges instead of expensive universities for the same education. That’s what I did: community college and spent my time either working, studying or going to class. Paid for my degree out of pocket
@@nicholasselke5214 Well not everyone’s parents are multi-millionaires so if you want a good-paying job, it’s either trade school, degree, or sell drugs like Big Meech lol
Usually in my area deposit is a full rent month rent which you can get back if u show youve maintained your apartment when u leave. If u leave before 1yr lease u have t9 pay the additional months but some landlords are lenient with this. Michigan
I’m closing in on retirement, and I'd love to move to a warmer climate, but home prices are ridiculous now.. do I look at other assets and wait for housing crash, or go ahead with house purchase anyways?
I wholeheartedly concur. At 60 years old and newly retired, my external retirement funds total around One million two hundred fifty thousand dollars.. With no debt and minimal retirement fund allocation relative to my portfolio's value over the last three years, I recognize the importance of a financial advisor.
The higher deposit might be a hurdle for some people. I have seen apartments ask for 2 months of deposit for people with bad credit so I’m guessing it can get pretty expensive with no credit. Not advocating for debt but it can be cheaper to do stuff if you have good credit.
In this case, you have to weigh the pros and cons of not paying interest on debt. The average consumer will pay $130k in interest in there lifetime- surely putting a few extra down on a refundable deposit will be worth it
That happened to a friend of mine in Southern California. She rented through a management company. The late check fee was $50.00, three late checks and the renter was out. She mocked the contract she signed until her first late rent check (with $50.00 extra late fee added) overdrew her bank account (an additional $25.00 bank fee), then it was "Oh these people are bloodsuckers, they are ripping me off." We told her the apartment sounded too expensive for her. 😂😂
Can you make a video on how to book hotels or airbnbs without using a credit card? I have always been told I need to put my credit card down for a $100 “liability” charge. I have always paid for vacation with cash and it’s always a pain to find a hotel since I cut up all of my credit cards. Love the videos very excited for your book to be shipped out!
I’m not from USA and I never knew they look at your credit/debt rating when you rent. They dont even care about your income as long as you can pay the security deposit
Congratulations, George, you proved that someone would need to prove their income, have more disposable income, and put more money up front to rent a property without a credit score. That's all well and good for people who can afford to do that, but that situation is certainly not going to apply to many of your followers.
I moved to US without a credit score. One month deposit was required, and salary requirement was 3 times the rent. Additionally, they insisted I pay my rent directly from payroll to a 3rd party company. The 3rd-party company will then pay on my behalf. What sucked most was that I have to pay the 3rd-party company monthly to pay my rent for me. These terms will be reviewed once I have built enough credit. Infuriating but I had to go with this arrangement.
Most private landlords don't require a credit score and have no way to even look it up. Just prove you have the income and/or savings to pay the rent and give me a security deposit. We discriminate against people with no job; no money; or "mommy will pay all my rent."
Not true at all, I always background check my tenents, there are a ton of apps for it and cost a mere $25 which I have the applicant pay, the only time I was stupid enough to not check was my very first tenant when I had zero experience in real estate and was naive and trusted people, they destroyed my apartment and disappeared without a trace, ever since then my property manager runs a full background and credit check, never had a problem since.
There are a lot of things that you don’t need, but they sure do make life a lot easier, convenient, or less expensive. Sure, you don’t need a credit score per se, but using a little discipline to get a good credit score sure does make a lot of things easier to obtain & a lot less expensive over time, like getting a better interest rate on a mortgage.
It might be a good idea to apply gazelle intensity when you buy a house, and buy one that you can actually afford. It would usually be smaller than you want, but most people don’t need a house nearly as big as they’re buying In my area, I can easily find a livable house for $120k. I take home about $60k per year. I’d have that house paid off in less than four years. Therefore, I’d pay far less in total interest than someone with an 850 credit score that takes the entire 30 years to pay off their mortgage
Just want to point out that this only works if you don't have a credit score. It doesn't work if you have a low credit score. If you have a score at all, they will use it. So It's better to pay off all your debts if you can.
Last week I viewed and applied to rent in a multi family home run by a family business. (Shout out the Kennedy's of Southern Iowa). They didn't even look at our credit score, they did however call my church's treasurer and asked for my income as a pastor. I needed to make 2250$ a month, with a 1450 deposit for a 2 bed 2 bath. When the elder who owns the property saw my application he immediately approved and said I'm worth a 1000 credit score.
Not having to make extra deposits on things like rent and utilities are reason enough to have a good credit score. When I got my first cell phone, I didn't have a credit score and had to make a pretty sizable deposit, and I had to do the same thing when I got Internet. Now I don't have to do stuff like that.
@@TheLadyaec of course. I didn’t have bad credit, just no credit. Light bill deposit was 650, water bill was like maybe 200 and the cable was like 250. That’s over a grand you wouldn’t have to pay with good credit. I like Dave Ramsey, but credit means a lot in this day and age as an average earner.
I wonder if this works in the real world. Im pretty sure they would tell everyone that so they apply. After you apply, they will reject you and pocket the application fee.
I can tell you from experience that having a moderately not awful credit score is very helpful in renting applications. When I had my best credit rating, I had very low cost move-in fees. When I had some issues, there would always be HUNDREDS of $$$ in extra fees. YOU DO NEED to have a solid credit history to make renting as cheap as possible.
Yeah, it is possible but for those starting out in their career (lower income and no little savings for the extra large deposit) it can be anything from an expensive route all the way to a deal breaker. Non corporate landlords - which can be hard to differenciate from corporate ownership groups - is the best bet for no credit score unless you have a trust fund or a high entry level salary.
I had no idea that landlords or property mgrs would make it that easy. Back in the early '90s, I had a terrible credit score and was out of work. I came into a moderate amount of money and offered the landlord/owner of an apt complex to allow me pay 1 year up front. They gladly accepted -no problem. This was in Austin. Nice to know there's an easier, less expensive work-around.
The way the dude worded it, you would need to make 38x3800 per month = 144,440 per month. When George asked if he just needed to make 144k per year, the guy said yes. LOL, it had me scratching my head for the first moment.
Mr. Sunflower who can't rent a car at the Knoxville Airport needs to read the fine print of the rental car companies. Many of them say a credit card is absolutely required but in the fine print it explains a bunch of hoops you have to jump through to rent with a debit card. It's a little annoying, but definitely possible. Or an alternative could be to rent a car on Turo. Plenty of cars available to rent in Knoxville on Turo with no credit check required and debit cards accepted.
I did it. Had to go through a mortgage company… I didn’t know about Churchill mortgage at the time… my credit union had never seen a zero credit score and didn’t know what to do w someone like me lol
I will not accept anyone who isn’t making 5x the rent, doesn’t have 6-12 months of reserves, or a 720+ credit score. My partner rented to someone with no credit and we’ve spent over $22k and a year of our time dumping the bum back out on the street. Never again…
I have no debt either and haven’t had for at least a decade. I have an 800+ credit score. I use a credit card for most purchases. If I need a big ticket item I use my savings. So what is the reason for not using credit at all ?
The Ramsey personalities think people are stupid so math doesn't matter. When you talk about Trad vs Roth 401k's, you shouldn't compare (22500 Trad) vs (22500 Roth) because the take home would be significantly different. You would instead need to compare (22500 Trad) vs (16000ish Roth) OR (22500 Trad + Invest the difference into a brokerage) vs (22500 Roth). But the Ramsey personalities say things like "well people are stupid and they don't invest the difference so Roth is better because it tricks them into saving more". They tell people to pay off low interest rate mortgages because "interest arbitrage only makes sense if you invest the difference and people are stupid and don't do that so paying off your mortgage is the correct thing to do." "People are paying 20-30% interest to gain points, credit cards are the devil. They will ruin your life." I too have never paid a cent of interest on a credit card and I don't have to jump through any weird hoops when taking a loan out on a vehicle and I don't have to worry about the bank freezing my account and spending a month doing an "investigation" when I have fraud. Instead I call up my CC company and go "that wasn't me" and they reverse the charge, cancel the card, and send me a new one. I am putting $ away in a HYSA for a new car but you bet your ass if I get a low interest rate than I am going to beef up my EF to handle the extra monthly payment and slam the rest into VOO. If I ever get a house with a low interest mortgage, you bet your ass I won't be making extra payments on that mortgage... any extra will go straight into VOO. And I will get those low interest rates using my long perfect credit history. IDK why they chose to tell people they are stupid and shouldn't do this or that when they could instead educate people on how to properly arbitrage low interest debt and how to properly use credit cards. I also don't understand why they don't just admit that a $1000 emergency fund is no longer enough. Just say "save up 1 months expenses that can't be put on a credit card such as rent and utilities. From there pay down high interest debt. Once that is done, increase your EF to 3-6 months total expenses." Personal Finance subreddit has a good flow chart that I feel is way better than any BS the Ramsey people spew. IUL's are terrible. That is something I agree with. But the answer to why an IUL is bad is that you are better off with Term Life and investing the difference. Why they are OK with educating people on the proper way to handle life insurance but refuse to apply the same logic to 2-3% mortgage vs 8-10% S&P500 is beyond me.
Here in northern VA I rented an apartment and a house over the years.. Having an excellent credit score, and I still had to put down a month's rent as deposit anyway. So it really doesn't matter. It might have helped waive a water or electric turn on. But you get those back after a year anyway.
Those fees without the waiver for electric and water are in the hundreds of dollars. I get what you're saying- but to really move out on your own these days into an apt. W/out credit score takes $1000s now. - not just a deposit and maybe a month's rent in advance
Note: they said you can apply with them, they did not say they would approve your application! Good luck. If you are fortunate enough to get a place with zero credit score, it is going to cost you a lot more in deposits on everything with no or bad credit. You do NOT have to have debt to have a good credit score.
I never used my credit score to rent, but i always rented from individuals or as someone not on the lease with roommates. I don't see the harm in having a credit score, but to each their own. Its better to not owe than owe, so whatever it takes to do that is the right way IMO
You definitely will be denied most places. Those that do allow it will basically make you pay 3-5x more money down than if you just had a credit score to reference.
The simple fact of the matter is that for many, they will need a loan for a car. You will definitely need one for a house. The better your score, the better your terms will be. Your car insurance is also affected by this. I agree zero debt is ideal. In my case I just have a credit card that I pay off every month so I don't have debt. If you want to do the debit/cash method for your day to day activities, just put maybe one or two purchases on your CC and pay it off immediately. You'll get a pretty high score just by doing that. I think that's a happy medium.
38x rent yearly is ROUGHLY the same as 3x rent monthly (38 vs 36) and so NYC is not that bad since there is no increased deposit. One is income burden and the other is income plus deposit $$$ burden
It's true, that if you don't have your heart set on a specific place, you don't have to have a credit score. On the other hand, a lot of apartments won't let you rent from them unless you can pass a combined Background Check/credit score. My apartment complex wouldn't let me rent without a credit score.
lol why not just build your credit, like have a great payment history, keep your balances low and don't apply for a lot of credit. Paying an extra deposit makes it even more expensive.
What's that place that had fixed amounts for deposits??? That's amazing. Most will run your credit and ask how much you have on you, and charge every imaginative fee possible. It's $50 to just look at the application.
this is a bad video. A good credit score makes it alot cheaper and easier to get a rental. If you have a 750 CS or more , the deposit is much much lower. In dallas a 1b1b renting for 1400, asked for 500 deposit with good credit opposed to 1400 or one month rent with no credit
So if your one baby steps 2, it would be impossible to rent an apartment. Notice that this is for people who are debt-free and don't have a credit score vs. the majority of people who do have debt, such as student loans, car payments, etc. George, please do a video on someone who is currently working on paying off debt and trying to find an apartment; most of the time, 9 out of 10, it would be denied.
think about how much that extra month deposit would make if invested , just sayin' get a credit score, stay out of debt and invest the money that you aren't using for extra deposit. If George ever branches out on his own and away from Ramsey - he'll have a credit card before the ink is dry on him Ramsey resignation letter.
Now buy auto insurance in a state where credit scores are factored into determining the rate, and see the shocking difference between what it costs with no credit score vs having very good or exceptional credit!😜
Can you make a video about the process of selling a car you’re underwater on? Getting a loan, transferring title, etc. that’s one of those things that’s mentioned all the time on the Ramsey show but idk how it actually works
@@15KHPCLUB no my car is paid for and doing just fine, thank you. Although I appreciate the condescension towards a total stranger. Actually, I was referring to the advice that is given almost daily by Ramsey personalities to callers who owe say 30k on a car that’s worth 25. The advice is always to get a personal loan for the different and enough to buy a cheap car in cash, then sell the car private party, thus reducing your debt from 30k to maybe 10. I have seen a lot of people in the comments confused about how to sell a car private party when you still owe money on it, and I just thought it would be helpful for George to give a walkthrough on the process
the irony is i had the same problem with trying to get a rental car while on vacation too, since i use cash i offered to pay 3x the amount for deposit and they still wouldn't take it (this happened both in san antonio and cancun)
Having credit cards doesn't mean you have debt. Pay your card off in full every month and you actually earn extra money from rewards programs. Having a high credit score results in paying $100,000 or more LESS on a mortgage and you achieve this with credit card and auto loan payment histories. You definitely need a credit score unless you plan to rent your whole life.
False. There is a reason why credit scores only exist in backwards hellholes like the USA. Credit scores are one of the reasons the rest of the world laughs at America.
I understand why you keep telling people it's bad to have a credit card, because some people don't have the discipline to pay off entire amount monthly, but if one does it actually makes life eaiser and saving faster. I can have my entire paycheck colecting month worth of interest while getting all my spending, that I of course fully budget for, on a credit card and then at the end of the statement period I pay the whole thing off. Never paid a single cent on interest rates on a cc, but earned extra money and extra bonuses from the cc and from having my salary untouched collecting interest. If you can't budget don't have cc, but if you can, it will earn you more.
@@autchicab it's not debt when I pay it immediately without any interest rate. And when I gain savings from it. Debt costs you more it doesn't give you extra.
@@aerated that makes absolutely zero sense as a comparison, I don't gamble with anything, there is no risk involved. There's no random chance involved. There is zero logic behind your statement.
I have a credit card score that varies between 750 to 810. I've never had anything good come from it. Nothing bad either. But it's like the price of tea in China.
I appreciate what you're trying to do, but didn't you actually prove the point? Needing to come up with thousands of more dollars or have a ridiculously higher income does not answer the problem when you could use a credit card responsibly and save that money. I agree, if you're already making a very decent income, then maybe you have the luxury of having no credit score, but most people here aren't in that position.
Of course they are going to tell you that you can still apply. What they won't tell you is that they will pick a different tenant that has a good credit score instead.
Once again for the audience: you WILL get a better rate on your mortgage with a hight credit score over no credit score. How do I know? I worked directly with Churchill Mortgage (Ramsey supported). Want to save on interest on your home? Have a high credit score.
Technically you may not need a score; however ridiculous rents and competition with others also needing to rent with scores may find you getting declined.
![BLACK BAG - Official Trailer [HD] - Only in Theaters March 14](http://i.ytimg.com/vi/Du0Xp8WX_7I/mqdefault.jpg)
My first time shopping for an apt I was 21, no credit and I went straight to the leasing office to apply. I mentioned I didn’t have credit so I wouldn’t pull up on a credit run. She was like, no credit is better than bad credit, no worries.
But you had income history first, so stubs, and 3x the rate? Some ppl have to move first to be next to the job.
To my own research In USA, individuals living in cars due to partial homelessness result from a complex interplay of factors. High housing costs relative to income, stagnant wages, and income inequality drive this issue. Job loss, weak social support, medical expenses, evictions, and lack of affordable housing also contribute, while systemic problems and inadequate policies further perpetuate the phenomenon.
Considering the present situation, diversifying by shifting investments from real estate to financial markets or gold is recommended, despite potential future home price drops. Given prevailing mortgage rates and economic uncertainty, this move is prudent, particularly due to stricter mortgage regulations. Seeking advice from a knowledgeable independent financial advisor is advisable for those seeking guidance.
I've remained in touch with a financial analyst since the start of my business. Amid today's dynamic market, the key difficulty is pinpointing the right time to buy or sell when dealing with trending stocks - a seemingly simple task but challenging in reality. My portfolio has grown by more than 5 figures within just a year, and i have entrusted my advisor with the task of determining entry and exit points.
My CFA ’Melissa Terri Swayne’ , a renowned figure in her line of work. I recommend researching her credentials further. She has many years of experience and is a valuable resource for anyone looking to navigate the financial market.
Appreciate this recommendation, hopefully I can get some insight to where the market is headed and strategies to beat the downtrend with when I hear back from Melissa.
I'm 37 year old African American woman, I've never had any landlord check my credit. I've never had an eviction. I've only used private landlords, and just proved my income and I put up 2 month's rent.
Where did you find private landlords?
I'll take a no credit over a bad credit.
Great video! I’m totally up for a small series. Renting cars next, buying a house, getting a credit report for work/background check. I can’t think of other things that I was told I’d need a credit number for, but I would love to hear about how I actually don’t need it!
I bought a house w a zero score.
I was helping coach an FPU coach and the leader told the class that you need a score for insurance. I immediately stepped in and corrected that. Absolutely not true. BAD credit will increase your payments but zero credit makes no difference
I always used a debit car for car rentals. I wouldn't anymore sense i had fraudulent charges to my bank account after renting a hotel room. It really jacked up a vacation i was on not having access to money because my account was frozen. I got a credit card after that first credit card ever at 51 years old.
@@donatelloslappafello1108
I’ve dealt w fraud w credit and debit cards. It will jack up a vacation for sure regardless if you don’t have a backup.
I drove to CA to see my friend and my credit AND debit card both got shut down because of suspected fraud. I literally wasn’t sure how to pay for gas to get home.
So having a credit card vs a debit card literally makes no difference. It’s the exact same hassle.
Now since then (this was about 9 years ago or so), any time I’ve encounter this, it is dealt is so much faster. Regardless of it being credit or debit, you need backups when traveling.
In my case it was a little bit difficult to rent a home wihtout credit score. Some landlords wanted up to 6 months of rent upfront - which was an issue after moving to the USA. Thankfully, we were able to find a landlord that was willing to rent us without any extra conditions. This was in Austin, Texas.
Oh yeah - FIRST! :D
Do you think being an immigrant might have been a factor?
@@JeanValjean875 It might have been, but I don't really know.
Also never pay that much rent in advance. You never know when you need to break the lease early.
@@coya8coyman of no word has no credit I wonder why lmao
Great video, George!
Now that you have your own channel, you guys should go off an old idea you had on The Ramsey Show: where you would go undercover to a timeshare presentation and pummel them with questions to expose the shady things going on there! Just to see them squirm, haha.
I would love to watch this 😂
Do it, George! I know you read the comments!
I fourth that !
Oh please do it.
Yes!!!!! I might even share that video!
So he proved the point that going through life without a credit score is more expensive. Deposits often don't come back to us, and it's not always fair. Also worth mentioning that in a if there is a competitive place, you're not going to be their top choice. They have other people with 800 scores that are a safer choice.
Thank you for making this video. Makes me feel better with applying for an apartment without a credit score for the first time! You guys are the best ❤
Love hearing this! You made this video worth making. Best wishes!
can't wait to see how that turns out
I got your book and I’m sooo happy to have the chance to support you.
Thank you so much for buying the book!!
In Oregon certain companies will deny you with no credit score or require upwards of $7k for deposits. Our baseline deposit is one months rent but they can increase it for very arbitrary reasons. One place I looked at a while ago was $1200 rent (reasonable) but the deposits would have been $4k to move in. Absolutely insane!
Oregon, especially Portland, is absolutely a horrible place to rent. I’m so glad we own our home!
George, I just want to say you are my favorite personality.
Got an update: down to only 2 people I owe, my mother and sister are now on the plan, and I have 2nd round interviews on a new job!!
Congrats! you're killing it! :)
I loved how they all had to check. Lol...they never heard anyone say they have no debt and no credit score!
George, Please don’t regret that joke. It was a solid Dad joke. Solid not runny 😂
I see what you did there! And I’m with you! George should never apologize for his jokes. The lamer the better!
We would definitely love to see more videos on how to live life without a credit score!! Trying to share all of this with our adult children.
Thank you for making a video on this!!!! This is so clear, to the point, and helpful!! I still have relatives that believe the only way is through credit. :/ I'm glad I can share this with them now. 🎉
You also don’t have to make 3 times rent at most places if you have 6 months rent in your bank account, well at least in sd. Which was helpful as a student.
All thru high school when talking about credit cards I was told not to get a credit card, cuz ultimately they can really be something that could screw up your life and that it's just all around a bad idea. I still stick with that advice, a debit card or cash for me. I dont ever plan to own a credit card!
You call Pennsylvania they won’t even let you have a dog.
LIVE MASSS🎉 good looking out!
Real world examples. Thank you for this.
Great fun to watch your illustrative and informative video. Please make more like this!
No one ever said you can't rent an apartment without a credit score. It just reduces your options - not every landlord will allow it.
I've heard several people say it. Lol
Or increases the cost by requiring a higher deposit or co-signer.
As someone who followed the Ramsey way growing up, this really bit me when I was moving cities a few years ago. Landlord after landlord straight-up turned me down because I had no credit score, even though I made enough to more than qualify for the apartment by every other factor. I eventually did find a place, but it simply is false to say that you don't need a credit score to rent - some places you do. Is it dumb? Absolutely. But it's still the reality in many parts of the country.
I get it, but it shouldn't be this way. If more people stop using credit then this won't be a standard. As a landlord, I used credit to know if a renter was good or not... but I found that I couldn't use credit at all because most people that rent have bad credit... it's just a fact. I ended up not even using credit and just used income and calling their past landlords as a tool.
You don't, it just takes more time and searching to get a place.
@@src4409 so how would you treat a senior with an excellent credit score, but only pension income who is looking to test a city to see if they want to move there permanently?
@@kodomotachi1 If even one place will not rent to you unless you have a credit card, then the phrase "you don't need a credit score to rent" isn't true under all circumstances - i.e. it's a false generalization.
You just made George's point while trying to discount his message. You showed you do NOT need a credit score. He never said it was going to be seamless or smooth, just takes a little more effort - like your story!
Your videos are so fun to watch! Thanks for brightening my day!
I couldn’t afford to live in an apartment anymore. Wow. This has been enlightening.
If you have a student loan, as soon as you’re done with college they will start reporting whether you pay or not. Many people are already in the credit score game before they even know it.
Although they're almost certainly using credit cards at 18, so...
That’s why they preach cash flowing your education. For one, you’ll be more likely to look at community colleges instead of expensive universities for the same education. That’s what I did: community college and spent my time either working, studying or going to class. Paid for my degree out of pocket
@@nicholasselke5214 Well not everyone’s parents are multi-millionaires so if you want a good-paying job, it’s either trade school, degree, or sell drugs like Big Meech lol
Ty George for the best stress reliever ever!! Proverbs 17:22❤🤩😊
While waiting for a answer on the phone, I was waiting for the" If this call is an emergency please hang up an dial 911.
Usually in my area deposit is a full rent month rent which you can get back if u show youve maintained your apartment when u leave. If u leave before 1yr lease u have t9 pay the additional months but some landlords are lenient with this. Michigan
I’m closing in on retirement, and I'd love to move to a warmer climate, but home prices are ridiculous now.. do I look at other assets and wait for housing crash, or go ahead with house purchase anyways?
Prioritizing effective personal finance management holds greater significance than the sheer amount saved, irrespective of income source..
I wholeheartedly concur. At 60 years old and newly retired, my external retirement funds total around One million two hundred fifty thousand dollars.. With no debt and minimal retirement fund allocation relative to my portfolio's value over the last three years, I recognize the importance of a financial advisor.
Someone who has the fiduciary license is better like CHRIS RYAN STEWART
He appears to be well-educated and well-read. I ran a GOOGLE search on his name and came across his website; thank you for sharing.
Looks efficient from what i am seeing, maybe i will send a mail to get insights
The higher deposit might be a hurdle for some people. I have seen apartments ask for 2 months of deposit for people with bad credit so I’m guessing it can get pretty expensive with no credit. Not advocating for debt but it can be cheaper to do stuff if you have good credit.
In this case, you have to weigh the pros and cons of not paying interest on debt. The average consumer will pay $130k in interest in there lifetime- surely putting a few extra down on a refundable deposit will be worth it
@@Pap-yy1xf You can have good credit without paying a dime in interest.
That happened to a friend of mine in Southern California. She rented through a management company. The late check fee was $50.00, three late checks and the renter was out. She mocked the contract she signed until her first late rent check (with $50.00 extra late fee added) overdrew her bank account (an additional $25.00 bank fee), then it was "Oh these people are bloodsuckers, they are ripping me off."
We told her the apartment sounded too expensive for her. 😂😂
Or just save two months rent...?
for sure
Can you make a video on how to book hotels or airbnbs without using a credit card? I have always been told I need to put my credit card down for a $100 “liability” charge. I have always paid for vacation with cash and it’s always a pain to find a hotel since I cut up all of my credit cards. Love the videos very excited for your book to be shipped out!
I’m not from USA and I never knew they look at your credit/debt rating when you rent. They dont even care about your income as long as you can pay the security deposit
This is the video I have been waiting for, thanks George
Great! Now let's do a mortgage next!
Bruh they talk about this all the time. You can call Churchill yourself and ask. I did it and the guy told me what they advertised
Congratulations, George, you proved that someone would need to prove their income, have more disposable income, and put more money up front to rent a property without a credit score. That's all well and good for people who can afford to do that, but that situation is certainly not going to apply to many of your followers.
I moved to US without a credit score. One month deposit was required, and salary requirement was 3 times the rent. Additionally, they insisted I pay my rent directly from payroll to a 3rd party company. The 3rd-party company will then pay on my behalf. What sucked most was that I have to pay the 3rd-party company monthly to pay my rent for me. These terms will be reviewed once I have built enough credit. Infuriating but I had to go with this arrangement.
Most private landlords don't require a credit score and have no way to even look it up. Just prove you have the income and/or savings to pay the rent and give me a security deposit. We discriminate against people with no job; no money; or "mommy will pay all my rent."
Agreed. When I got my apartment, my roommate had no credit. Was told explicitly no credit is always better than bad.
Not true at all, I always background check my tenents, there are a ton of apps for it and cost a mere $25 which I have the applicant pay, the only time I was stupid enough to not check was my very first tenant when I had zero experience in real estate and was naive and trusted people, they destroyed my apartment and disappeared without a trace, ever since then my property manager runs a full background and credit check, never had a problem since.
It's an apartment. It would have been a dump to begin with. @@JohnyJedi
@@JohnyJedi
You don’t charge an application fee to cover the background check? And you can look at credit history not the credit score.
You can run a credit check
There are a lot of things that you don’t need, but they sure do make life a lot easier, convenient, or less expensive. Sure, you don’t need a credit score per se, but using a little discipline to get a good credit score sure does make a lot of things easier to obtain & a lot less expensive over time, like getting a better interest rate on a mortgage.
It might be a good idea to apply gazelle intensity when you buy a house, and buy one that you can actually afford. It would usually be smaller than you want, but most people don’t need a house nearly as big as they’re buying
In my area, I can easily find a livable house for $120k. I take home about $60k per year. I’d have that house paid off in less than four years. Therefore, I’d pay far less in total interest than someone with an 850 credit score that takes the entire 30 years to pay off their mortgage
Just want to point out that this only works if you don't have a credit score. It doesn't work if you have a low credit score. If you have a score at all, they will use it. So It's better to pay off all your debts if you can.
YES to more videos about not having a credit score, please
Last week I viewed and applied to rent in a multi family home run by a family business. (Shout out the Kennedy's of Southern Iowa).
They didn't even look at our credit score, they did however call my church's treasurer and asked for my income as a pastor.
I needed to make 2250$ a month, with a 1450 deposit for a 2 bed 2 bath.
When the elder who owns the property saw my application he immediately approved and said I'm worth a 1000 credit score.
Not having to make extra deposits on things like rent and utilities are reason enough to have a good credit score. When I got my first cell phone, I didn't have a credit score and had to make a pretty sizable deposit, and I had to do the same thing when I got Internet. Now I don't have to do stuff like that.
Great point…..when I rented my first place. The light, water and internet deposits totaled over a grand
Utility deposit?
@@TheLadyaec of course. I didn’t have bad credit, just no credit. Light bill deposit was 650, water bill was like maybe 200 and the cable was like 250. That’s over a grand you wouldn’t have to pay with good credit. I like Dave Ramsey, but credit means a lot in this day and age as an average earner.
I wonder if this works in the real world. Im pretty sure they would tell everyone that so they apply. After you apply, they will reject you and pocket the application fee.
Real life renter here -- no credit card/score, and still renting in good standing. Also have rented in multiple states across the US. It can be done.
America is not part of the real world. The real world laughs at America.
@@nathanorr1200 Friends and family don’t count bro.
@@15KHPCLUB Got that right. My parents kicked me out at 17... It can be done.
I was never asked for a credit score when renting but the credit score was invaluable in securing a lower rate on my mortgage.
I can tell you from experience that having a moderately not awful credit score is very helpful in renting applications. When I had my best credit rating, I had very low cost move-in fees. When I had some issues, there would always be HUNDREDS of $$$ in extra fees. YOU DO NEED to have a solid credit history to make renting as cheap as possible.
Credit scores only exist in backwards hellholes like the USA.
Yeah, it is possible but for those starting out in their career (lower income and no little savings for the extra large deposit) it can be anything from an expensive route all the way to a deal breaker. Non corporate landlords - which can be hard to differenciate from corporate ownership groups - is the best bet for no credit score unless you have a trust fund or a high entry level salary.
My daughter just got an apartment in Albuquerque. They made her pay a much larger deposit because she didn’t have a credit card.
Sounds like she didn’t shop around
Define “much larger”. To those of us without debt, “much larger” isn’t a problem. 😊
What do you do about paying more for car insurance since rates are based on your credit score ?
The guy at 2:30 hard baited me. I thought he mean 38x the rent per month!
I had no idea that landlords or property mgrs would make it that easy. Back in the early '90s, I had a terrible credit score and was out of work. I came into a moderate amount of money and offered the landlord/owner of an apt complex to allow me pay 1 year up front. They gladly accepted -no problem. This was in Austin. Nice to know there's an easier, less expensive work-around.
The way the dude worded it, you would need to make 38x3800 per month = 144,440 per month. When George asked if he just needed to make 144k per year, the guy said yes.
LOL, it had me scratching my head for the first moment.
Mr. Sunflower who can't rent a car at the Knoxville Airport needs to read the fine print of the rental car companies. Many of them say a credit card is absolutely required but in the fine print it explains a bunch of hoops you have to jump through to rent with a debit card. It's a little annoying, but definitely possible. Or an alternative could be to rent a car on Turo. Plenty of cars available to rent in Knoxville on Turo with no credit check required and debit cards accepted.
Can you do another video where you show us how to go about getting a mortgage without a credit score? Underwriting?
I did it. Had to go through a mortgage company… I didn’t know about Churchill mortgage at the time… my credit union had never seen a zero credit score and didn’t know what to do w someone like me lol
However, most apartments will require a higher to much higher deposit without a credit score. That's a huge difference.
Im okay to pay as long as it dosent require a credit score
You didn't even watch the video, did you?
I will not accept anyone who isn’t making 5x the rent, doesn’t have 6-12 months of reserves, or a 720+ credit score.
My partner rented to someone with no credit and we’ve spent over $22k and a year of our time dumping the bum back out on the street.
Never again…
I'm going to cut up and cancel my credit cards this year. Been weaning myself off the past several months and transferring bill to my debit card.
38x... WHO THE F**** are they trying to RENT TO.. NFL STARS??? New York Crazy as hell.
I have no debt either and haven’t had for at least a decade. I have an 800+ credit score. I use a credit card for most purchases. If I need a big ticket item I use my savings.
So what is the reason for not using credit at all ?
The Ramsey people give advice meant for everybody and most people don't do a good job with credit cards.
The Ramsey personalities think people are stupid so math doesn't matter.
When you talk about Trad vs Roth 401k's, you shouldn't compare (22500 Trad) vs (22500 Roth) because the take home would be significantly different. You would instead need to compare (22500 Trad) vs (16000ish Roth) OR (22500 Trad + Invest the difference into a brokerage) vs (22500 Roth). But the Ramsey personalities say things like "well people are stupid and they don't invest the difference so Roth is better because it tricks them into saving more".
They tell people to pay off low interest rate mortgages because "interest arbitrage only makes sense if you invest the difference and people are stupid and don't do that so paying off your mortgage is the correct thing to do."
"People are paying 20-30% interest to gain points, credit cards are the devil. They will ruin your life." I too have never paid a cent of interest on a credit card and I don't have to jump through any weird hoops when taking a loan out on a vehicle and I don't have to worry about the bank freezing my account and spending a month doing an "investigation" when I have fraud. Instead I call up my CC company and go "that wasn't me" and they reverse the charge, cancel the card, and send me a new one.
I am putting $ away in a HYSA for a new car but you bet your ass if I get a low interest rate than I am going to beef up my EF to handle the extra monthly payment and slam the rest into VOO.
If I ever get a house with a low interest mortgage, you bet your ass I won't be making extra payments on that mortgage... any extra will go straight into VOO.
And I will get those low interest rates using my long perfect credit history.
IDK why they chose to tell people they are stupid and shouldn't do this or that when they could instead educate people on how to properly arbitrage low interest debt and how to properly use credit cards.
I also don't understand why they don't just admit that a $1000 emergency fund is no longer enough. Just say "save up 1 months expenses that can't be put on a credit card such as rent and utilities. From there pay down high interest debt. Once that is done, increase your EF to 3-6 months total expenses." Personal Finance subreddit has a good flow chart that I feel is way better than any BS the Ramsey people spew.
IUL's are terrible. That is something I agree with. But the answer to why an IUL is bad is that you are better off with Term Life and investing the difference. Why they are OK with educating people on the proper way to handle life insurance but refuse to apply the same logic to 2-3% mortgage vs 8-10% S&P500 is beyond me.
Oh they have you well trained. The concept of credit scores is absurd and is only used in hellholes like the USA
Here in northern VA I rented an apartment and a house over the years.. Having an excellent credit score, and I still had to put down a month's rent as deposit anyway. So it really doesn't matter. It might have helped waive a water or electric turn on. But you get those back after a year anyway.
There is no such thing as an "excellent credit score".
Those fees without the waiver for electric and water are in the hundreds of dollars. I get what you're saying- but to really move out on your own these days into an apt. W/out credit score takes $1000s now. - not just a deposit and maybe a month's rent in advance
In norcal you need 1st, last and and security deposit...PLUS you need to earn 3 times the monthly rent. Worry about credit later.
Note: they said you can apply with them, they did not say they would approve your application! Good luck. If you are fortunate enough to get a place with zero credit score, it is going to cost you a lot more in deposits on everything with no or bad credit. You do NOT have to have debt to have a good credit score.
You just have to live in a hellhole like the US in order to have a credit score
This is great information to share. I love your videos! Thank you!
Yeah….you kinda proved that having credit would HELP in the city’s.
I never used my credit score to rent, but i always rented from individuals or as someone not on the lease with roommates. I don't see the harm in having a credit score, but to each their own. Its better to not owe than owe, so whatever it takes to do that is the right way IMO
$144k income to rent a studio in New York 😳🤦
You definitely will be denied most places. Those that do allow it will basically make you pay 3-5x more money down than if you just had a credit score to reference.
You will definitely be laughed at if you have a credit score, because it means you are American
The simple fact of the matter is that for many, they will need a loan for a car. You will definitely need one for a house. The better your score, the better your terms will be. Your car insurance is also affected by this.
I agree zero debt is ideal. In my case I just have a credit card that I pay off every month so I don't have debt. If you want to do the debit/cash method for your day to day activities, just put maybe one or two purchases on your CC and pay it off immediately. You'll get a pretty high score just by doing that. I think that's a happy medium.
38x rent yearly is ROUGHLY the same as 3x rent monthly (38 vs 36) and so NYC is not that bad since there is no increased deposit.
One is income burden and the other is income plus deposit $$$ burden
It's true, that if you don't have your heart set on a specific place, you don't have to have a credit score. On the other hand, a lot of apartments won't let you rent from them unless you can pass a combined Background Check/credit score. My apartment complex wouldn't let me rent without a credit score.
Why would you want to rent an apartment? They are not fit for human habitation.
The holding music 🤣
now I'm gonna be a little bit of a party pooper here. the sample size is way too small to be accurate.
At this living in NY is just dumb. Making almost 145K for a $3800 studio?! What in the what
lol why not just build your credit, like have a great payment history, keep your balances low and don't apply for a lot of credit. Paying an extra deposit makes it even more expensive.
What's that place that had fixed amounts for deposits??? That's amazing. Most will run your credit and ask how much you have on you, and charge every imaginative fee possible. It's $50 to just look at the application.
Ok. That intro had me going full Emperor’s New Groove with “I DON’T MAKE DEALS WITH PEASANTS.” Biggest disappointment of my year so far lol
Fun fact: many countries don't use a credit system. Credit cards aren't pushed in many countries.
this is a bad video. A good credit score makes it alot cheaper and easier to get a rental. If you have a 750 CS or more , the deposit is much much lower. In dallas a 1b1b renting for 1400, asked for 500 deposit with good credit opposed to 1400 or one month rent with no credit
There is no such thing as a good credit score. Credit scores are one of the reasons the rest of the western world laughs at the USA.
It's called I don't have Kamel to cosign or put in a good word for me
" I can vouch for him to pay on time "
So basically, don't live in New York.
Or anywhere else in the USA.
So if your one baby steps 2, it would be impossible to rent an apartment. Notice that this is for people who are debt-free and don't have a credit score vs. the majority of people who do have debt, such as student loans, car payments, etc.
George, please do a video on someone who is currently working on paying off debt and trying to find an apartment; most of the time, 9 out of 10, it would be denied.
No sane person wants to rent an apartment. Those places are full of pests.
That on hold music 😂
Let's talk to get around in this world without a decent credit score, sorry everybody's not a millionaire like you for Dave
Pretty easy to get around in this world without a credit score. Precisely because the world laughs at America and its credit scores.
think about how much that extra month deposit would make if invested , just sayin'
get a credit score, stay out of debt and invest the money that you aren't using for extra deposit.
If George ever branches out on his own and away from Ramsey - he'll have a credit card before the ink is dry on him Ramsey resignation letter.
Now buy auto insurance in a state where credit scores are factored into determining the rate, and see the shocking difference between what it costs with no credit score vs having very good or exceptional credit!😜
Can you make a video about the process of selling a car you’re underwater on? Getting a loan, transferring title, etc. that’s one of those things that’s mentioned all the time on the Ramsey show but idk how it actually works
Why would you sell it?
Does it not run and drive or you just wanna one-up your friend’s mommy-bought Beamer?
@@15KHPCLUB no my car is paid for and doing just fine, thank you. Although I appreciate the condescension towards a total stranger.
Actually, I was referring to the advice that is given almost daily by Ramsey personalities to callers who owe say 30k on a car that’s worth 25. The advice is always to get a personal loan for the different and enough to buy a cheap car in cash, then sell the car private party, thus reducing your debt from 30k to maybe 10.
I have seen a lot of people in the comments confused about how to sell a car private party when you still owe money on it, and I just thought it would be helpful for George to give a walkthrough on the process
the irony is i had the same problem with trying to get a rental car while on vacation too, since i use cash i offered to pay 3x the amount for deposit and they still wouldn't take it (this happened both in san antonio and cancun)
There is literally no excuse or valid reason for renting a car. Do not do it.
Having credit cards doesn't mean you have debt. Pay your card off in full every month and you actually earn extra money from rewards programs. Having a high credit score results in paying $100,000 or more LESS on a mortgage and you achieve this with credit card and auto loan payment histories. You definitely need a credit score unless you plan to rent your whole life.
False. There is a reason why credit scores only exist in backwards hellholes like the USA. Credit scores are one of the reasons the rest of the world laughs at America.
I understand why you keep telling people it's bad to have a credit card, because some people don't have the discipline to pay off entire amount monthly, but if one does it actually makes life eaiser and saving faster. I can have my entire paycheck colecting month worth of interest while getting all my spending, that I of course fully budget for, on a credit card and then at the end of the statement period I pay the whole thing off. Never paid a single cent on interest rates on a cc, but earned extra money and extra bonuses from the cc and from having my salary untouched collecting interest.
If you can't budget don't have cc, but if you can, it will earn you more.
That just means you personally are comfortable with debt and that the credit card companies have done a good job advertising to you.
“I don’t know why you tell people not to gamble. I have a lot of fun playing blackjack every now and then”
@@autchicab it's not debt when I pay it immediately without any interest rate. And when I gain savings from it. Debt costs you more it doesn't give you extra.
@@aerated that makes absolutely zero sense as a comparison, I don't gamble with anything, there is no risk involved. There's no random chance involved. There is zero logic behind your statement.
@@eweliyi Don't bring logic into a Ramsey video. That's just asking to get roasted LOL
Would this work if a family wanted to move into an apartment? Compared to a single person moving in?
Great video!
I have zero debt except $365k on a house working $900k, and a 829 credit score.
I have a credit card score that varies between 750 to 810. I've never had anything good come from it. Nothing bad either. But it's like the price of tea in China.
I appreciate what you're trying to do, but didn't you actually prove the point? Needing to come up with thousands of more dollars or have a ridiculously higher income does not answer the problem when you could use a credit card responsibly and save that money. I agree, if you're already making a very decent income, then maybe you have the luxury of having no credit score, but most people here aren't in that position.
Of course they are going to tell you that you can still apply. What they won't tell you is that they will pick a different tenant that has a good credit score instead.
This 100%. If it is a competitive rental with dozen of applicants, your will go straight to the bottom of the pile...
Once again for the audience: you WILL get a better rate on your mortgage with a hight credit score over no credit score. How do I know? I worked directly with Churchill Mortgage (Ramsey supported). Want to save on interest on your home? Have a high credit score.
Once again, for the audience: The concept of credit scores is absurd, and causes the rest of the western world to laugh at the USA.
😂 I started to bust out laughing about the New York rent. Why do people live there ?
Yes so you have to pay MORE money if no credit score. Credit cards are ok if you know how to use them properly.
Technically you may not need a score; however ridiculous rents and competition with others also needing to rent with scores may find you getting declined.
@@deathorjusticeaccurate
George is all of us while we’re on hold 😂