@@IreneZGoodman you are broke and or in debt. Cash is King today, yesterday and tomorrow. I own a business, guess who gets clipped for 3 percent and who gets a discount?
Just know that many states or now adding criminal history even those as teen. Credit is affecting more than just income...job opportunities etc. Having a good credit score wont hurt you.
Honestly a “ramsey” score would be an awesome thing. People working the baby steps can see a number that would be improving with them for more motivation!
WRONG! I have a 820 credit score never paid 1 penny in interest. I open a credit card every few months put a few hundred dollars on it, collect some reward typically $100-$200. Then the most important step pay it off in full every month like clockwork.
I’m debt free but I always pay my bills early. And sometimes I purchase things with my credit card, then send full payment next day. I like to keep my credit score high just in case I ever need to use it.
Exactly. My husband and I have a paid off house (worth 700k), paid off cars, and we use our credit cards for all our purchases and pay them off at the end of every month. We both have credit scores around 815 and we can get a rental property on a mortgage at the best interest rates if the right opportunity comes up. We can use our cash to invest in the stock market and not worry about keeping a whole bunch of cash for a real estate opportunity that might come up. Not to mention, a lot of people want to check your credit scores, including potential employers. I'm not on board with this no credit score thing. It makes life a lot harder to navigate.
I also have a pretty high credit score 760-780 and it was stupid easy to do so if you are a responsible person and have the disciple to not use the card to buy things you can't afford. This is how I did it and I am no one special, in fact I came from nothing and was very lazy until a few years ago, I didn't even have a car or anything and now I have high credit, a job and a car. This is all I did to get a high credit score I opened a secured credit card because I had no history, my credit score started off at like 550 2-3 years ago The ONLY thing I do with my credit card is buy things I would normally buy with cash that I can afford So let's say I normally would have bought a candy bar with cash or dish soap or a item with cash, instead I used the secured credit card As others before me have said, I always made sure to PAY IT OFF so that I never paid a dime in interest Another thing is that I never used more than 30% of my limit, you want to keep your utilization or how much you are using on your limit low So if your limit is only $100 then I wouldn't buy something more than $30, and also pay it off before the bill is due That's all I did for 2-3 years and my score went from 550 up into the high 700s No tricks or gimmicks it's that brain dead easy Again this only applies to people with self control who can understand that the credit card is only to be used to buy things you can actually afford with cash In other words you are just using the credit card as a replacement for cash to boost your score and you are NOT using it for the purpose of borrowing money A credit card can also come in handy whenever your pay check isn't in your bank yet and you need to buy something and know your pay check will come in the next day or so When I bring up that example I mean only do that if you know for a fact you already worked the hours to get a pay check that is coming soon Do NOT buy something on a credit card if you don't have a pay check coming in or haven't worked the hours yet or could end up not getting the pay check you thought you would have got I haven't had any crazy emergency but I could also use my credit card was an emergency, let's say I don't get paid until Friday but it's a Thursday and I got a flat tire and need to fix it, well I could use my credit card to fix it on Thursday knowing that the next day my pay check will come in In short, don't buy things you can't afford with cash or if you don't have a paycheck coming in that will pay it off before you get charged interest I agree most people shouldn't have a credit card because they won't have self control But that doesn't apply to all of us Me and others are examples of repsonible people who use the card as if it was cash and pay the card off on time each month I don't look at my credit score as I'd it's the end of the world but it definitely makes things easier when you can use the score to prove you are responsible as a person And no one in these comments is saying they got rich off a credit card, we are just saying it's nice to have and makes things easier IF you are responsible and we are just pointing out that not everyone who has a credit card is broke or in debt or had to pay interest to get the score
This advice is really meant for financial alcoholics. Maintain a credit score. It costs nothing in interest when paid in full each month and will save from a headache in many situations. I literally only put subscriptions on different cards and make sure they’re paid in full each month on autopay. I haven’t paid a penny in interest in years and I am effectively debt free. However, I know most don’t have the discipline to do this.
@@justinacase2623 if you have enough excess in your “envelopes” to more than cover the charges then you are effectively debt free. For example, our utilities envelope has 3500 in it. What does it matter that we have utilities go on a credit card which the funds are then transferred to pay vs doing the EFT directly? Our only envelope with a negative balance is our home improvement envelope. I borrowed from my excess cash envelope to do work we planned for 2021 this year since we are stuck at home.
Pay off my credit card every month. Never paid a dime of interest in my life on it and it raised my credit score to 760. Dave can't preach this system because he has to include irresponsible people in his plan but for those who have control this makes life much easier. No 'going around the system' to buy insurance, a phone, rent a car, apartment, etc and still no interest paid.
I'm a Ramsey fan but he underestimates the effort it takes to rent apartments and get a mortgage without a credit score. Even Kevin O'leary hates debt but thinks everyone should have a credit card with a small limit and pay it off monthly to maintain a good credit score. Because it's a whole lot of effort without one.
A new cell phone plan?! You should be on a prepaid $25-$40/month plan. Dave really needs to address this, some people are walking around with a $200+ cell phone plan while in debt. Insanity.
I want to see these "low credit landlords" in NYC. I have a 625 score (and rising due) and haven't found an apartment in 10 months. And Dave, no it does not cost $100,000 to have a $780 score. All you got to do is pay your bills on time. So you can charge $20 every month and pay it every month and still have a great credit score. And that's without paying interest.
Yeah Dave is pretty out of touch with this. I have a friend who has one card that he puts less than $100 of gas and groceries on every month, pays it in full every month, and his score is in the 800s.
Agreed. A 625 credit score here in the San Francisco Bay Area? Forget it. Even with increased vacancies and lower rents, they won't give you the time of day.
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Why can't you guys just admit credit score is important? Credit score is not just used for borrowing. It's used to show you are reliable to make payments when due, such as rent (which is not debt).
@@charlesspurrier8769 Although one could argue a credit score is not necessary it sure does make things like a mortgage application much easier. And the main argument against credit cards, which is basically lack of self control, is a weak one at best. Sadly it seems most people lack self control but it would also be foolish to go around claiming credit cards are bad and a credit score is not important for everyone.
I work in property management and saying “most apartment communities will work with you” is bs. Lol. Most apartment communities screen applicants through a third party system that automatically approves or denies if you have insufficient credit or a bad score. There is no disputing or negotiating at that point.
Thank you for pointing this out! When I turned 18 and moved out, I already had bad debt and a score of 550 due to my dad not paying his apartment bill and I was on the lease, and we were evicted. After that, it was SO DIFFICULT for me to get an apartment, but I eventually did, signing a lease with 3 other roommates that had decent debt, and bringing my score up from there on my own. 10 years later and my score is now low 800s, thanks to keeping 3 cards with low to no balance & paying it off right away when I do charge something. My boyfriend and I are about to get our own place now and he has a low 500s score, which makes me a little nervous, but hopefully it won't be a problem since mine is so high now 🤞
My credit score is 800 and I paid ZERO interest ever since I got a credit card 20 years ago because I pay off every month! I have saved 1% to 3% of what I bought in the past using the credit cards so it's like easy, wise shopping. LOL
From my experience, it might depend on the city/state, but my credit score affected how much of a deposit I needed to give up front. Most landlords look at credit score yes, but what's more important to them is how much you have coming in versus how much is going out.
Depends on the person, I have a 824 credit score, have no debt except my house have 80k in cash and 1/4 million in assets besides my cash and equity in my home at the age of 36. I use a card and pay it off every month, only interest i pay is one my house, always on a tight budget but its called SELF CONTROL & STAYING ONTOP OF FINANCES!
Idk, I'm almost 100% consumer debt free and my credit score is 800. But it does take a hit every time an account closes. Then it goes back up in a few months. My debt was never that high and it was like 535 5- 6 years ago.
I hit over 800 on mine and I primarily use it for gas or stuff that I'd have to use my debit card for anyways. So I pay my bill/expense as soon as it clears and is no longer pending. And the card I use actually pays me back for what I use it on at 1.5% cash back and it's as if I made an extra 1.5% on my income towards stuff I'd have to buy anyways regardless
I don’t even use a credit card for rewards. We have our cash back go into our investment account and never see it. However using something directly connected to my primary bank account is never going to happen. We have a separate smaller account for EFT payments too. I want a buffer between my operating cash and crooks. The credit card serves that purpose
Yeah i remember my first apartment i was able to rent my without a credit score. It’s a case to case basis. If your income is good, then it shouldnt be a problem.
It also depends on where you live. In expensive, high demand markets, you're not going to get the time of day from landlords. Sure, it works in TN where Dave lives, but not in major cities in the NE or on the West :Coast (yes, there are rare exceptions, but they are just that--rare).
@@mysticaltyger2009 i do agree with that. I live in LA. Its hard to get an apartment here without a credit score. But i guess at that time i got lucky. It was also during recession.
your way of explaining this is so easily understood. this needs to be taught to all young people right in high school. might save them from getting into debt when they get out on their own.
You don't need to maintain good credit for a job. You just want to avoid bad credit, such as having bills in collections, as that's what employers actually look for when they run credit checks on potential employees.
@@chrisstaub5880 National Agency Check, Law Enforcement and Credit (NACLC) More than $25K in revolving credit debt, will prevent you from getting Badged
he actually listens to other hosts all the time. But if it doesn't help the conversation he shuts them off. In this videos case the thing she said was a technicality and only thing it will achieve is to confuse the caller. So he acted like she didn't said anything. Does Dave has "I know best" attitude that most of the guys in his generation has? yes he does. But it doesn't mean that people around him are brainless zombies. They just go along because it is his show and he decides on the narrative. It actually is part of his charisma. I am sure that he listens them after the show carefully and not care anyway :D
@@TILLEYJS most people who are good at making payments are usually financially sound. That’s why score matters with contract decisions, but not determinate of how well off you are. Also Jordan, it’s *you’re*
@@RyanAnthonyDigitalMedia Credit score never mattered with me. Paid off 30yr mortgage in 9 years and done. Didn’t even need a score to buy my home. I pay bills but never payments.
@@Francis.Rivers paying of debt? Yes good for you man! Closing your accounts? Bad choice. Good luck qualifying for a mortgages anytime soon and if you do get a manually underwritten loan(good luck) then you will get a higher interest rate.
I paid off all my credit cards this year, my score went up like 50 points. The CC company's tool is just an estimate and it's also behind by a month or two. It takes time to reflect the changes.
My credit score is 775. I’ve only had a car loan of less than $7,500.00. I paid off my student loans prior to them accruing interest. I used a gas credit card and another credit card to buy my normal purchases. If you are emotionally mature enough to handle credit cards, you should. My net worth is also pretty good for my age so having a credit card hasn’t hurt me at all
I have a credit score of 789. All I have is a few credit cards that I pay off every month before any interest is charged. I completely agree that having a good credit score does not necessarily mean you're winning with money. (i.e. having savings, investments, etc.). It is my observation, though, that people with high credit scores tend to be in good financial health, but certainly not always.
Agreed, but you don't necessarily need to have spent a 100K in interest to have a high credit score. I have never paid interest on a credit card and only paid about five grand in interest on my mortgage before I paid it off in three years. My credit score is pretty high, not that I care.
I never understood the purpose of credit cards.... Why doesn't everyone have 1 checking account with 1 debit card? The need for more than that is silly... the only reason people have credit cards is for the 2% cashback nonsense
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With sound habits that Dave definitely has - not having a credit score is literally just for effect and to prove his philosophy. He's choosing to make things more difficult because the built in theory doesn't trust the average consumer. So he literally does it to such an extreme just to prove a point to all - but if you can be the 1-5% of people who actually make sound financial decisions then choosing this goal post of no credit score is just unwarranted - but the odds are against you
780 probably cost someone 100,000 in interest? What a false assumption. Just pay off in full each month. I'd cancel my credit cards though if I could be a high income earner celebrity as part of Dave's team.
@@brockb3692 You are wrong statistically as long as you have a credit card with no annual fee. With cash back and no annual fee you would actually be paying less than using straight cash. If you are a child with no self control then a credit card is a bad idea for sure though.
@@SGyru I see both points to this. What Brock B is trying to say is by using a CC you tend to spend more. If you have $100 in your pocket for shoes you can only buy shoes for $100. However if you use a CC, the $110 or $120 pair is within reach. That is what is meant by overspending statistically and this is what the MIT study refers to. If you disagree i urge you to stop using your CC for a month or two and go 100% cash and I suspect you may spend a bit less just by being more aware. I was doubtful at first too and thought I had control of my CC finances but then when I switched over I ended up saving some, but honestly not a ton.
@@SGyru Haha, yeah he was referencing all the studies that show you buy more when you use plastic. Hence spend more. He didn't mean interest/annual fee. So yes, you are statistically spending more money.
@@Chris-dr4bl Dave relents and says using a debit card is fine and that can easily create the same flaws you mentioned where now you have access to your entire checking account and can buy the 120 dollar shoes with only 100 dollars in your pocket.
Can never understand why people want to be in debt to get a good credit score! I’m 22 with two cars and a house, all bought by saving and paying cash, still paying off house but even with the house I used owner finance and credit was not even a topic!
If you paying debts and you planning to be debt free. Dont worry about the credit score. Check on it now and then to make sure no one else is useing your name and opening accounts. Other then that don't worry about it
Having a credit score will get you a much lower interest rate on a mortgage plus its easier to qualify. I can invest the difference i save in interest rate and make hundreds of thousands over decades.....all because of working on your credit score(and never paying interest on credit cards or consumer debts) the game can reward you if you are disciplined.
1. Depends on the credit score. 2. you can get an equally low mortgage rate without having a credit score. 3. A mortgage is in fact debt, so again you only (need) a FICO score to take on debt. 4. Clearly you haven't done the math on the investing portion and have only looked at percentages. If you actually hold the correct inputs to be equal total amount per month, the difference is roughly 3-5%. But it doesn't really matter either way since both paths get you well over 2.5M for the average house cost of 275k over a 30 year period (based on mortgage length). However risk and stress is completely ignored from this equation as that is the math only. So, yeah. You spoke as someone who doesn't really know what they are talking about.
@@charlesspurrier8769 this scenario is for people with a 740+ credit score which isn't that hard to get within a 2 year span of building up credit(payoff the credit cards every month). A manually underwritten mortgage compared to mortgage using a 740+ FICO will have a drastically different interest rate so you are saving a couple hundred bucks a month depending on the loan amount. Even 200/month over 15 years will make working on a credit score worth it. Stressful? Yeah its tedious. Risky? Nope, thats what reserves are for to cover emergencies.
@@charlesspurrier8769 this is what conversations are for. I dont have time to write paragraphs after paragraphs to explain every little detail of why having a credit score is more beneficial than going to get a manual mortgage. Every scenario is different and people need to run their numbers and not just become Zombies saying "FiCo is BAd bECauSe DAvE RaMSeY SaiD So"
Open an account at a credit union, take out a secure loan. There is a small cost, but it will improve your score. You can pay it off every few months and just keep repeating it.
I do agree on alot of what Dave says except this I think credit is crucial to get ahead but buying stupid things to get your credit up is an awful idea I use my credit cards for gas and food only have a 790 credit score
I have close to an 800 credit score and it hasn't cost me anything in interest. Pay off your credit cards every month, pretend you're using your debit card when you buy things, and you're never in debt but still building credit. And signup bonuses are incredible. up to 40% returns!
Comment about the 780 credit score just isn't true.... my credit is nearly 800 and I've paid under $3,000 in interest my entire life... some misinformation right there
The only time you shouldn’t have a credit score in my opinion is if you can’t control yourself with credit. A good credit score can be very valuable. It can allow you to leverage properties which is highly beneficial. Finances isn’t quite as black and white as Dave makes it out to be.
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I could almost say the same for myself. I got this far because I paid attention to my finances. Financial management is a crucial topic that most tend to shy away from, and ends up haunting them in the near future.
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Your Ramsey score could be based on the 7 baby steps. Maximum score 700. Your progress through the baby steps increases score until you reach the next hundred (baby step).
He can have a credit card if he is very responsible! I have been a legal immigrant in the USA for more than 30 years, always used credit card, one for main use another for back up (almost never needed). Never paid any fees, nor interests all those years! Have a very high credit score! Taught my children do the same. It is simpler to use credit card than using cash. Never used debicard!
Lies most apartments WILL NOT rent to people with low or no credit. Unless u go to a bad neighborhood. You are out of touch and need to get with the times sir.
@@mikedelrossi6981 congrats to you but I live in a high priced, high wage earner area where credit scores matter. There is absolutely not one complex that will rent to someone with a credit score below 620 even then you have have to provide written explanation why.
That’s not true. I just moved in 4 months ago. I put a full months rent as a security deposit and they said that the home was mine. Rachel is right, there are way around the system
@@alyssablanco5 Congrats, you found an apartment willing to bypass proper procedure. Congratulations but that does not happen often. What I said was true and that is definitely evident by what you said happened and the area I live.
Be careful when you negotiate a settlement with creditors. You can be liable for taxes on any amount they write off as that is considered income. When I say be careful, I just mean, be aware.
Some people, i like some real estate investors actually do love debt as a means to boost returns. I will withhold asserting my judgement on that matter
Pleasee let us develop a "Ramsey Score" as a more real and true indicator of your relationship with Finances like Dave said. I liked this video a lot! Really needed it for my next few steps.
I have a 790 credit score and have never paid a penny in interest. We use credit cards responsibly by paying them off in full every month without exception and have no other debt. Our house and cars were all paid for in cash, so no debt there. Credit cards aren't safe for everyone, but I don't understand why Dave says you HAVE to have paid thousands in interest to have a high credit score. Not true in my case anyway.
I’m calling Ramsey out on his BS! Just like when he said buy a $1k car. Does he think people are this naive not to believe credit scores don’t matter? High credit scores always matter! Come back to reality grandpa 👴
DaMu I know millionaires & billionaires & they all have credit cards. Yes they are bad if you don’t pay them off every month but without them people couldn’t survive today. Nothing wrong with credit cards if you pay them off every month. Some give perks!
I agree with a lot of the stuff that Ramsey says but that part where he says that you need to have paid thousands in interest to have a 780 credit score is complete BS. I'm in baby step 5,6,7 (currently saving for a downpayment on a house). I'm in my mid-20s, have zero dollars in debt. I paid for my own college out of pocket by going to a state school. I use credit cards to do my every-day shopping but pay them off completely at the end of the month. I have gotten a couple hundred dollars in reward points from using them. I have an 802 credit score and I have paid ZERO dollars in interest in my life. Play the system, don't let it play you. EDIT: I only care about my credit score so I can get good rates for when I buy my house. so I can pay even less in interest.
I feel like this is great advice and something that we should all strive for but in reality it just doesn’t seem to play out. Rachel might be able to find ways around an apartment rent or a Verizon bill by searching for another carrier but for many of us we don’t have that luxury. For instance I can’t leave the town I live in because I have joint custody or from a former marriage and I have two small children so I’m not going anywhere for the next 10 to 15 years. Furthermore the rent in my area is nonexistent it’s almost impossible to rent anything here as the market is so tight. In addition to this home sales are greatly affected and everyone is asking top dollar in this sellers market and homes are disappearing in just days. And banks are not loaning because they can choose to be picky because there is literally a line of preapproved people waiting for the first home to go up for sale. Everything is overpriced and no one will lend you money unless your credit is really good. And if you are a family trying to survive and you have a few kids and your credit score is messed up you can’t even find a home to live in. And as far as the carrier goes we have a lot of hills and valleys around here so we don’t have a choice to just switch carrier plans Verizon is the only one in our area that even has cell phone coverage. The same goes for Internet coverage if you live outside the city you have to go with only two local providers and they are literally charging three times the rate of the same Internet providers that are in the city that will not take the risk to hit the rural areas. I feel like if you start off life in your 20s or 30s or you’re young like Rachel and you make all the right decisions and don’t end up in a bad divorce then you’re very likely to make good decisions financially. But with most of the country dealing with divorce issues it seems almost impossible to not have accumulated debt and to rely heavily on credit scores when literally you can do virtually nothing without one. In the end I’m just not sure it’s worth it if I have goals to own a $300,000 - $400,000 house but it’s gonna take me 30 years to be able to do it because I have to live in a home in my mid-40s that’s only $150,000 and then spent 20 years trying to save every penny I have to pay for cash in full for a home when I might have just 10-15 years of my life left to even enjoy it before I pass away.
Sounds like you have all the excuses figured out. Now work on the plan to do those things to make your life better. Get creative with living arrangements, find someone in your same situation and split rent.
@@justinacase2623 I agree with Tom. A credit score is a necessary evil. Yes, you can work around it more than many will admit, but a lot of times, you can't.
@@justinacase2623 I’m married 46 why in the world would I split rent with some random stranger? I have a wife and four kids I’m not in my 20s coming out of college my friend.
@@justinacase2623 yes if you follow Dave’s plan and your life is perfect and you don’t have to deal with the real world issues like a divorce at the age of 46. One thing I want people to understand is there are many of us that try and do everything correctly in life but still get shafted and things like when a spouse abandons you and literally takes everything you own including your home and destroys your finances. You may have all the intentions of doing well but the world is not perfect and unfortunately you do have to rely on credit scores to survive at times. Not everyone goes to college then gets married and then has kids and then pays off all their debt through their thirties to 40s in that order. Simply joining the military and serving your country can completely invert that equation and with good intentions. Many of us in the real world have to deal with being shafted along the way and are just trying to survive off the tools we have in our 40s and 50s and often it’s not because of bad decisions we have made. And if anything you guys should be quite aware that 75%-80% of divorces are committed and filed by the wife and it is very probable and very easy to lose track and put everything into your marriage and get completely blindsided in the end having to restart your life in your 40s and 50s. At that point you’re in the same boat many of us men find ourselves as well as many single moms just trying to survive financially.
Just pay off your balance every month on auto. I make $1000's in rewards every year, simply don't put anything on credit that you can't pay in full as soon as statement closes.
@@OhanaLulu did u ever hear Dave talk about renting with no credit score? Very informative. It can be done, don't believe what the bottle blond up front tells you. If they waited on good credit scores for renters place would be empty, just like car lots.
Scamscore! I will be out of debt by the end of the year. No delinquent problems. My friend has a higher score which she brags about, but is deep in debt. Mine is fine but not as high. I don’t focus on that. Getting out of debt is my main focus.
I live near DC and have seen my credit score drop after killing off credit cards. Once the car payment is gone will probably force me to move to a non-traditional lender to buy a house.
You don’t need a good credit score to get a cell phone line. Only to finance a phone through them. They will give you a line with bad credit. Just $0 in financing.
Absolutely terrible advice. People should be responsible for their actions. It's not a credit cards fault that you're to incompetent to measure your spending habits. A good credit score results in lower mortgage, more home and renting options, lower insurance premiums for health and auto, and credit card rewards which on average amount to a 1.5% return on all common expenses like groceries and gas when utilized correctly. Spending money you don't have will always be a bad thing whether you do it with a credit card or not. Manual underwriting is not the holy grail, it's an inconvenience for loan agencies and you will pay a premium for it.
I agree, but there are “tricks” to getting better credit such as diversification of the types of credit you have, percentage owed on card, in addition to paying on time. People don’t know enough about credit, while others may just take the right turn unwittingly.
@@Justsayingthat you're totally right. It's really sad when people think you need to overspend or go into debt to get a good score. Literally all you need to do is open one or two cards, buy groceries, and autobill your car insurance to the card and pay it off each month without missing any payments. It's not rocket science.
I have a Vantage Score of 760, and I've paid roughly $4,000 in interest. Too much, for sure, not worth it, for sure, but nowhere near the reported $80,000. I imagine in 20 years time, without ever carrying a balance, it might feasibly be $8,000, if I get lazy or make a mistake.
But this doesn't help us. We are not millionaires who can pay cash for everything. But we need credit to purchase homes rent apartments and live daily.
I have to be honest, I'm not sure Rachel should be giving advice about "It's tough but I've had to do it." That just rings hollow for me because I seriously doubt that she's ever struggled financially or needed a credit score. As for Dave, I always have to laugh at his perception of landlords and apartments. No private landlord or managed apartment complex cares if you are paying off debt, they care that you can pay the rent every month and not drive up their eviction costs. Having the mindset of "If they don't care that you are paying off debt, you don't want to live there" is just hilariously off base. If you are dealing with a REIT or any corporate apartment management company you need a decent credit score if you don't want to have to pay 2x the deposit. Some smaller landlords might not look at credit, but even today most mom and pop landlords do a background and credit check to see if you'll pay your bills. Landlords and employers use a credit score as a measure of your responsibility and if you have a low score and demonstrate you can't be responsible enough with your own personal finance, they take that as an indication of how you'll handle your job responsibilities.
@@justinacase2623 Most people don't have the money for the deposit. That's where his attitude kind of comes off as being off base when it comes to the realities of renting.
It's not an indicator of financial health but it does help you leverage your money to build wealth. Ultimatley we have to get a good credit score to be able to leverage money. Being debt free is great but leverage is the way to build wealth in my opinion.
Score doesn't tell you if you are winning financially but it certainly can open doors and make your life easier
Cash makes it even easier. Cash is King all else Jokers.
@@justinacase2623 not in today's world. It would be nice though.
What "doors" does having a high credit score open for you?
@@IreneZGoodman you are broke and or in debt. Cash is King today, yesterday and tomorrow. I own a business, guess who gets clipped for 3 percent and who gets a discount?
Just know that many states or now adding criminal history even those as teen. Credit is affecting more than just income...job opportunities etc. Having a good credit score wont hurt you.
Honestly a “ramsey” score would be an awesome thing. People working the baby steps can see a number that would be improving with them for more motivation!
My Ramsey score is my 7 figure net worth.
You need royalties
Took the words out of my mouth!
Yes!
I agree please do it I would love a Ramsey score
He called the wrong show : ) but I'm glad Dave was still able to clue him in
bahahaha right?! You know how those wrong numbers be
He thought this was the Graham Stephan show
True, he needs to call I'm gonna stay in debt and broke show. Dave's makes millionaires not permanent rats running in a wheel.
Save me 7 minutes. What did he call about? Lol
@@mikenelson8377 he wants a great credit score
WRONG! I have a 820 credit score never paid 1 penny in interest. I open a credit card every few months put a few hundred dollars on it, collect some reward typically $100-$200. Then the most important step pay it off in full every month like clockwork.
I’m debt free but I always pay my bills early. And sometimes I purchase things with my credit card, then send full payment next day. I like to keep my credit score high just in case I ever need to use it.
@RaoulDuke6666 just because you have no self-control and can't pay your card bill every month it doesn't mean the rest of us are like that
Exactly. My husband and I have a paid off house (worth 700k), paid off cars, and we use our credit cards for all our purchases and pay them off at the end of every month. We both have credit scores around 815 and we can get a rental property on a mortgage at the best interest rates if the right opportunity comes up. We can use our cash to invest in the stock market and not worry about keeping a whole bunch of cash for a real estate opportunity that might come up. Not to mention, a lot of people want to check your credit scores, including potential employers. I'm not on board with this no credit score thing. It makes life a lot harder to navigate.
@ wow thats good! I couldn't keep track of that many!
I also have a pretty high credit score 760-780 and it was stupid easy to do so if you are a responsible person and have the disciple to not use the card to buy things you can't afford. This is how I did it and I am no one special, in fact I came from nothing and was very lazy until a few years ago, I didn't even have a car or anything and now I have high credit, a job and a car.
This is all I did to get a high credit score
I opened a secured credit card because I had no history, my credit score started off at like 550 2-3 years ago
The ONLY thing I do with my credit card is buy things I would normally buy with cash that I can afford
So let's say I normally would have bought a candy bar with cash or dish soap or a item with cash, instead I used the secured credit card
As others before me have said, I always made sure to PAY IT OFF so that I never paid a dime in interest
Another thing is that I never used more than 30% of my limit, you want to keep your utilization or how much you are using on your limit low
So if your limit is only $100 then I wouldn't buy something more than $30, and also pay it off before the bill is due
That's all I did for 2-3 years and my score went from 550 up into the high 700s
No tricks or gimmicks it's that brain dead easy
Again this only applies to people with self control who can understand that the credit card is only to be used to buy things you can actually afford with cash
In other words you are just using the credit card as a replacement for cash to boost your score and you are NOT using it for the purpose of borrowing money
A credit card can also come in handy whenever your pay check isn't in your bank yet and you need to buy something and know your pay check will come in the next day or so
When I bring up that example I mean only do that if you know for a fact you already worked the hours to get a pay check that is coming soon
Do NOT buy something on a credit card if you don't have a pay check coming in or haven't worked the hours yet or could end up not getting the pay check you thought you would have got
I haven't had any crazy emergency but I could also use my credit card was an emergency, let's say I don't get paid until Friday but it's a Thursday and I got a flat tire and need to fix it, well I could use my credit card to fix it on Thursday knowing that the next day my pay check will come in
In short, don't buy things you can't afford with cash or if you don't have a paycheck coming in that will pay it off before you get charged interest
I agree most people shouldn't have a credit card because they won't have self control
But that doesn't apply to all of us
Me and others are examples of repsonible people who use the card as if it was cash and pay the card off on time each month
I don't look at my credit score as I'd it's the end of the world but it definitely makes things easier when you can use the score to prove you are responsible as a person
And no one in these comments is saying they got rich off a credit card, we are just saying it's nice to have and makes things easier IF you are responsible and we are just pointing out that not everyone who has a credit card is broke or in debt or had to pay interest to get the score
@RaoulDuke6666
You’re the alcoholic sitting in the very back of the room at AA meetings.
Just don’t spend what you don’t have. Very simple.
This advice is really meant for financial alcoholics. Maintain a credit score. It costs nothing in interest when paid in full each month and will save from a headache in many situations. I literally only put subscriptions on different cards and make sure they’re paid in full each month on autopay. I haven’t paid a penny in interest in years and I am effectively debt free. However, I know most don’t have the discipline to do this.
What is effectively debt free mean? Is that like a little pregnant?
@@justinacase2623 if you have enough excess in your “envelopes” to more than cover the charges then you are effectively debt free. For example, our utilities envelope has 3500 in it. What does it matter that we have utilities go on a credit card which the funds are then transferred to pay vs doing the EFT directly? Our only envelope with a negative balance is our home improvement envelope. I borrowed from my excess cash envelope to do work we planned for 2021 this year since we are stuck at home.
Yep. 780 credit score here in 8 years of history. 0 interest paid! Crazy how that works??
Austin M mine is right around the same and I established my credit about 5 years ago. It’s possible if you plan it out.
Azzo haha that’s pretty good! I just mean I have a lot more cash than debt and I pay no interest.
Caller: From Washington D.C.
Dave: “God help you” 😂💀
Washington DC a disgusting swamp
😂😂😂😂
@@thetruth5635 I like DC. I never understood the negative impression. But I'm from the dmv so I'm biased I guess.
Pay off my credit card every month. Never paid a dime of interest in my life on it and it raised my credit score to 760. Dave can't preach this system because he has to include irresponsible people in his plan but for those who have control this makes life much easier. No 'going around the system' to buy insurance, a phone, rent a car, apartment, etc and still no interest paid.
I'm a Ramsey fan but he underestimates the effort it takes to rent apartments and get a mortgage without a credit score. Even Kevin O'leary hates debt but thinks everyone should have a credit card with a small limit and pay it off monthly to maintain a good credit score. Because it's a whole lot of effort without one.
A new cell phone plan?! You should be on a prepaid $25-$40/month plan. Dave really needs to address this, some people are walking around with a $200+ cell phone plan while in debt. Insanity.
Riiiiight.....I don’t understand why they do that 🤔
He does often
I want to see these "low credit landlords" in NYC. I have a 625 score (and rising due) and haven't found an apartment in 10 months.
And Dave, no it does not cost $100,000 to have a $780 score. All you got to do is pay your bills on time. So you can charge $20 every month and pay it every month and still have a great credit score. And that's without paying interest.
Yeah Dave is pretty out of touch with this. I have a friend who has one card that he puts less than $100 of gas and groceries on every month, pays it in full every month, and his score is in the 800s.
Wow I have no credit card and my score, well does not matter. Dave is spot on.
Agreed. A 625 credit score here in the San Francisco Bay Area? Forget it. Even with increased vacancies and lower rents, they won't give you the time of day.
@@mysticaltyger2009 time to leave that great state for a better life
Do you listen to this show regularly?
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I can’t and I can, two of the strongest phrases in the English language.
I like
It's, "I am" - literally
I can personally attest to this. My credit score is also 780 and I’ve been paying debt for nearly 20 years 😔
Why can't you guys just admit credit score is important? Credit score is not just used for borrowing. It's used to show you are reliable to make payments when due, such as rent (which is not debt).
Something is only important based on its necessity. You don't need a credit score. It's used for those things because its easy, but not required.
That's what broke people think.
@@charlesspurrier8769 Although one could argue a credit score is not necessary it sure does make things like a mortgage application much easier. And the main argument against credit cards, which is basically lack of self control, is a weak one at best. Sadly it seems most people lack self control but it would also be foolish to go around claiming credit cards are bad and a credit score is not important for everyone.
@@justinacase2623 Broke people think about the practical nature of a metric that shows reliability when dealing with financial transactions?
@@MM-uf1cs and thus, stay broke and in debt.i was there once, never again!
I work in property management and saying “most apartment communities will work with you” is bs. Lol. Most apartment communities screen applicants through a third party system that automatically approves or denies if you have insufficient credit or a bad score. There is no disputing or negotiating at that point.
Thank you for pointing this out! When I turned 18 and moved out, I already had bad debt and a score of 550 due to my dad not paying his apartment bill and I was on the lease, and we were evicted. After that, it was SO DIFFICULT for me to get an apartment, but I eventually did, signing a lease with 3 other roommates that had decent debt, and bringing my score up from there on my own.
10 years later and my score is now low 800s, thanks to keeping 3 cards with low to no balance & paying it off right away when I do charge something.
My boyfriend and I are about to get our own place now and he has a low 500s score, which makes me a little nervous, but hopefully it won't be a problem since mine is so high now 🤞
Never paid a penny in interest, 810 credit score. I know Dave's point but him saying a big credit score costs you a ton of money in interest is false.
"theres ways around the system"
this is why I like yall
I love Rachel’s honesty. 💯🎯
My credit score is 800 and I paid ZERO interest ever since I got a credit card 20 years ago because I pay off every month! I have saved 1% to 3% of what I bought in the past using the credit cards so it's like easy, wise shopping. LOL
Some company's even look at their employees.
Those companies can tell if you have bad credit, good credit or no credit. It’s better to have no credit.
From my experience, it might depend on the city/state, but my credit score affected how much of a deposit I needed to give up front. Most landlords look at credit score yes, but what's more important to them is how much you have coming in versus how much is going out.
Depends on the person, I have a 824 credit score, have no debt except my house have 80k in cash and 1/4 million in assets besides my cash and equity in my home at the age of 36.
I use a card and pay it off every month, only interest i pay is one my house, always on a tight budget but its called SELF CONTROL & STAYING ONTOP OF FINANCES!
Idk, I'm almost 100% consumer debt free and my credit score is 800. But it does take a hit every time an account closes. Then it goes back up in a few months. My debt was never that high and it was like 535 5- 6 years ago.
I'll party at your house.
I hit over 800 on mine and I primarily use it for gas or stuff that I'd have to use my debit card for anyways. So I pay my bill/expense as soon as it clears and is no longer pending. And the card I use actually pays me back for what I use it on at 1.5% cash back and it's as if I made an extra 1.5% on my income towards stuff I'd have to buy anyways regardless
I don’t even use a credit card for rewards. We have our cash back go into our investment account and never see it. However using something directly connected to my primary bank account is never going to happen. We have a separate smaller account for EFT payments too. I want a buffer between my operating cash and crooks. The credit card serves that purpose
Yeah i remember my first apartment i was able to rent my without a credit score. It’s a case to case basis. If your income is good, then it shouldnt be a problem.
It also depends on where you live. In expensive, high demand markets, you're not going to get the time of day from landlords. Sure, it works in TN where Dave lives, but not in major cities in the NE or on the West :Coast (yes, there are rare exceptions, but they are just that--rare).
@@mysticaltyger2009 i do agree with that. I live in LA. Its hard to get an apartment here without a credit score. But i guess at that time i got lucky. It was also during recession.
Exactly, I have good credit and job, but I am not a desirable tenant because I am single with kids. It really is case by case
your way of explaining this is so easily understood. this needs to be taught to all young people right in high school. might save them from getting into debt when they get out on their own.
I should have Trick-Or-Treated as a Credit Card at the Ramsey's house for Halloween... Would have scared them half to death! 🎃
🤣
you really tried for this one...
Very brutal, what's in your wallet!
You know the Ramsey's are armed right? Oh that made me laugh..credit card on Dave Ramsey's lawn.
@@justinacase2623 “ money”
Regarding insurance, apartments, and even jobs at times, glad that Rachel said it is pain, but can be done.
You don't need to maintain good credit for a job. You just want to avoid bad credit, such as having bills in collections, as that's what employers actually look for when they run credit checks on potential employees.
@@chrisstaub5880 National Agency Check, Law Enforcement and Credit (NACLC)
More than $25K in revolving credit debt, will prevent you from getting Badged
@@aolvaar8792 wow 😮
Sometimes, you can see Rachel not agreeing with her father and he just steamrolls over her as if no one said anything... wow
I notice that as well. Along with his other cohorts. It’s almost like he had them brainwashed into some kind of a cult ideology.
@@jeffreywhitaker5154 have you ever had a job before? When your boss talks you shut up and listen even if you were saying something
@@kyleolivas9909 nope. Can’t say that I have.
He always does.
he actually listens to other hosts all the time. But if it doesn't help the conversation he shuts them off. In this videos case the thing she said was a technicality and only thing it will achieve is to confuse the caller. So he acted like she didn't said anything.
Does Dave has "I know best" attitude that most of the guys in his generation has? yes he does. But it doesn't mean that people around him are brainless zombies. They just go along because it is his show and he decides on the narrative.
It actually is part of his charisma. I am sure that he listens them after the show carefully and not care anyway :D
Everything revolves around credit. I don't understand why Ramsey trys to play it off like it's not important when it affects everyone's daily life.
Hey Dave I got 810 credit with only paying on a house for 2 years and always paying off credit cards every month
"Credit score doesn't tell you if your winning with money or not!" - Interesting
Just tells you that you're good at making payments. Not if you are financially sound.
@@TILLEYJS most people who are good at making payments are usually financially sound. That’s why score matters with contract decisions, but not determinate of how well off you are. Also Jordan, it’s *you’re*
@@RyanAnthonyDigitalMedia
Credit score never mattered with me.
Paid off 30yr mortgage in 9 years and done. Didn’t even need a score to buy my home.
I pay bills but never payments.
It doesn’t. My credit score has been garbage for about a year. Because we’ve been paying off debts and closing them accounts. No regrets.
@@Francis.Rivers paying of debt? Yes good for you man! Closing your accounts? Bad choice. Good luck qualifying for a mortgages anytime soon and if you do get a manually underwritten loan(good luck) then you will get a higher interest rate.
Why have a co-host, just to cut her off mid-sentence. Sorry Rachel.
That’s his daughter lol
He does that to all of the Ramsey personalities
Yeahhh it is really annoying when he does that.
the personalities aint still at par with DR. I always prefer DR clips on this youtube account, or maybe some chris hogan clips too.
I paid off all my credit cards this year, my score went up like 50 points. The CC company's tool is just an estimate and it's also behind by a month or two. It takes time to reflect the changes.
My credit score is 775. I’ve only had a car loan of less than $7,500.00. I paid off my student loans prior to them accruing interest. I used a gas credit card and another credit card to buy my normal purchases. If you are emotionally mature enough to handle credit cards, you should. My net worth is also pretty good for my age so having a credit card hasn’t hurt me at all
I think you already have a Ramsey score. It sounds like, "I'm on baby step four," or "I'm on baby step seven".
Never pay a debt agency to do for you the very things you can do yourself! With people like Dave you can learn how to get on track
I have a credit score of 789. All I have is a few credit cards that I pay off every month before any interest is charged. I completely agree that having a good credit score does not necessarily mean you're winning with money. (i.e. having savings, investments, etc.). It is my observation, though, that people with high credit scores tend to be in good financial health, but certainly not always.
Agreed, but you don't necessarily need to have spent a 100K in interest to have a high credit score. I have never paid interest on a credit card and only paid about five grand in interest on my mortgage before I paid it off in three years. My credit score is pretty high, not that I care.
I never understood the purpose of credit cards.... Why doesn't everyone have 1 checking account with 1 debit card? The need for more than that is silly... the only reason people have credit cards is for the 2% cashback nonsense
Which I charge 3 percent for using one at my business! So they are in the hole. So much for sticking it to the man!
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Excellent!! Always appreciate a good talk about success in investments it keeps my hopes up for a better future.
@@BUCTHA4 i’ll like to know more on your partnership with your investor and how much you make from your investments
@@MBest-ty3zs I contracted him to manage and grow a certain amount of my income by investing them into various markets for a service fee charge. I currently make a decent $60k in profits monthly
@@BUCTHA4 wow that’s nice, so supposing i were to invest 8000 dollars to 10000 dollars how much fees do i have to pay for management and insurance and all of that stuff
With sound habits that Dave definitely has - not having a credit score is literally just for effect and to prove his philosophy. He's choosing to make things more difficult because the built in theory doesn't trust the average consumer. So he literally does it to such an extreme just to prove a point to all - but if you can be the 1-5% of people who actually make sound financial decisions then choosing this goal post of no credit score is just unwarranted - but the odds are against you
780 probably cost someone 100,000 in interest? What a false assumption. Just pay off in full each month. I'd cancel my credit cards though if I could be a high income earner celebrity as part of Dave's team.
Even if you pay off the credit cards each month, you're still spending more statistically.
@@brockb3692 You are wrong statistically as long as you have a credit card with no annual fee. With cash back and no annual fee you would actually be paying less than using straight cash. If you are a child with no self control then a credit card is a bad idea for sure though.
@@SGyru I see both points to this. What Brock B is trying to say is by using a CC you tend to spend more. If you have $100 in your pocket for shoes you can only buy shoes for $100. However if you use a CC, the $110 or $120 pair is within reach. That is what is meant by overspending statistically and this is what the MIT study refers to. If you disagree i urge you to stop using your CC for a month or two and go 100% cash and I suspect you may spend a bit less just by being more aware. I was doubtful at first too and thought I had control of my CC finances but then when I switched over I ended up saving some, but honestly not a ton.
@@SGyru Haha, yeah he was referencing all the studies that show you buy more when you use plastic. Hence spend more. He didn't mean interest/annual fee. So yes, you are statistically spending more money.
@@Chris-dr4bl Dave relents and says using a debit card is fine and that can easily create the same flaws you mentioned where now you have access to your entire checking account and can buy the 120 dollar shoes with only 100 dollars in your pocket.
When he started talking about credit I was like ohh lawddd
This the best show on radio RUclips, etc.
Good luck getting an apartment even with the explanation to the landlord. They just see the score and say nah 🤷♂️
Can never understand why people want to be in debt to get a good credit score! I’m 22 with two cars and a house, all bought by saving and paying cash, still paying off house but even with the house I used owner finance and credit was not even a topic!
If you paying debts and you planning to be debt free. Dont worry about the credit score.
Check on it now and then to make sure no one else is useing your name and opening accounts. Other then that don't worry about it
Having a credit score will get you a much lower interest rate on a mortgage plus its easier to qualify. I can invest the difference i save in interest rate and make hundreds of thousands over decades.....all because of working on your credit score(and never paying interest on credit cards or consumer debts) the game can reward you if you are disciplined.
you don't do any of that. you watch youtube clips during the day. shut up.
1. Depends on the credit score. 2. you can get an equally low mortgage rate without having a credit score. 3. A mortgage is in fact debt, so again you only (need) a FICO score to take on debt. 4. Clearly you haven't done the math on the investing portion and have only looked at percentages. If you actually hold the correct inputs to be equal total amount per month, the difference is roughly 3-5%. But it doesn't really matter either way since both paths get you well over 2.5M for the average house cost of 275k over a 30 year period (based on mortgage length). However risk and stress is completely ignored from this equation as that is the math only. So, yeah. You spoke as someone who doesn't really know what they are talking about.
@@charlesspurrier8769 this scenario is for people with a 740+ credit score which isn't that hard to get within a 2 year span of building up credit(payoff the credit cards every month). A manually underwritten mortgage compared to mortgage using a 740+ FICO will have a drastically different interest rate so you are saving a couple hundred bucks a month depending on the loan amount. Even 200/month over 15 years will make working on a credit score worth it. Stressful? Yeah its tedious. Risky? Nope, thats what reserves are for to cover emergencies.
@@charlesspurrier8769 this is what conversations are for. I dont have time to write paragraphs after paragraphs to explain every little detail of why having a credit score is more beneficial than going to get a manual mortgage. Every scenario is different and people need to run their numbers and not just become Zombies saying "FiCo is BAd bECauSe DAvE RaMSeY SaiD So"
If you pay cash there is no interest so there would be no need to have a good credit score to get a better interest rate.
Oooohhh.... Dave is on to something here. A Ramsey Score! Love it !!
Open an account at a credit union, take out a secure loan. There is a small cost, but it will improve your score. You can pay it off every few months and just keep repeating it.
I do agree on alot of what Dave says except this I think credit is crucial to get ahead but buying stupid things to get your credit up is an awful idea I use my credit cards for gas and food only have a 790 credit score
I have close to an 800 credit score and it hasn't cost me anything in interest. Pay off your credit cards every month, pretend you're using your debit card when you buy things, and you're never in debt but still building credit. And signup bonuses are incredible. up to 40% returns!
Comment about the 780 credit score just isn't true.... my credit is nearly 800 and I've paid under $3,000 in interest my entire life... some misinformation right there
Your credit score can affect whether you get hired for a job.
I've had zero debt for 18 months and my Credit Score is 631. How do I get it to zero?
Close your accounts
Once all accounts including a mortgage are closed, you score will go to indeterminable.
The only time you shouldn’t have a credit score in my opinion is if you can’t control yourself with credit. A good credit score can be very valuable. It can allow you to leverage properties which is highly beneficial. Finances isn’t quite as black and white as Dave makes it out to be.
All accounts have been closed for over a year.
I will never borrow again. Saving and investing grows money with the least amount of risk possible.
Recently I got into the stock financial niche, and I’ve taken a deep dive into investing, particularly dividend growth investment as it interests me. Tried several methods trying to figure out the best approach to building my portfolio. So far, I’m making progress with the help of my financial advisor. Back to the video, wonderful job there, always look forward to your next content..cheers!
It’s Individual stocks for me since they offer more flexibility because I can pick and choose the stocks that fit my financial objectives and tolerance for risk.,
I could almost say the same for myself. I got this far because I paid attention to my finances. Financial management is a crucial topic that most tend to shy away from, and ends up haunting them in the near future.
@@emilyhowe3359 Very well said.
@Hill Landry "Nancy Jane Gluck " is one I'm quite familiar with, I came across her on an investment webinar.. she's quite known look her up, she has a website and everything so you can reach her from there..cheers!
Take a look at GameOfTrades on youtube - its a massive and Obvious bubble which will explode and the JNK (symbol) is a great indicator for the explosion. BTW, I currently have highly leveraged trades on the Short term spike we're seeing in the markets.
Your Ramsey score could be based on the 7 baby steps. Maximum score 700. Your progress through the baby steps increases score until you reach the next hundred (baby step).
He can have a credit card if he is very responsible! I have been a legal immigrant in the USA for more than 30 years, always used credit card, one for main use another for back up (almost never needed). Never paid any fees, nor interests all those years! Have a very high credit score! Taught my children do the same. It is simpler to use credit card than using cash. Never used debicard!
Lies most apartments WILL NOT rent to people with low or no credit. Unless u go to a bad neighborhood. You are out of touch and need to get with the times sir.
My landlord just asked why the score was low and still rented to me
@@mikedelrossi6981 congrats to you but I live in a high priced, high wage earner area where credit scores matter. There is absolutely not one complex that will rent to someone with a credit score below 620 even then you have have to provide written explanation why.
It’s tough. It’s not impossible though. Wondering what your definition of “bad neighborhood” is also...lol
That’s not true. I just moved in 4 months ago. I put a full months rent as a security deposit and they said that the home was mine. Rachel is right, there are way around the system
@@alyssablanco5 Congrats, you found an apartment willing to bypass proper procedure. Congratulations but that does not happen often. What I said was true and that is definitely evident by what you said happened and the area I live.
Be careful when you negotiate a settlement with creditors. You can be liable for taxes on any amount they write off as that is considered income. When I say be careful, I just mean, be aware.
It’s 3am in Korea and I’m watching this
It's 5 o'clock somewhere
Is the current time we watch this an indicator of wealth?
Absolutely! Glad you mentioned it. Watching at 3 am from a 10 million dollar estate is telling.
Does that mean your personal financial clock
Love following your baby steps! Thanks Dave!
Some people, i like some real estate investors actually do love debt as a means to boost returns. I will withhold asserting my judgement on that matter
Good advice if you are bad at handling money...
Pleasee let us develop a "Ramsey Score" as a more real and true indicator of your relationship with Finances like Dave said. I liked this video a lot! Really needed it for my next few steps.
I would say that's just your net worth.
I have a 790 credit score and have never paid a penny in interest. We use credit cards responsibly by paying them off in full every month without exception and have no other debt. Our house and cars were all paid for in cash, so no debt there. Credit cards aren't safe for everyone, but I don't understand why Dave says you HAVE to have paid thousands in interest to have a high credit score. Not true in my case anyway.
I’m calling Ramsey out on his BS! Just like when he said buy a $1k car. Does he think people are this naive not to believe credit scores don’t matter? High credit scores always matter! Come back to reality grandpa 👴
Do you know what credit scores are, you whippersnapper?
DaMu I know millionaires & billionaires & they all have credit cards. Yes they are bad if you don’t pay them off every month but without them people couldn’t survive today. Nothing wrong with credit cards if you pay them off every month. Some give perks!
I agree with a lot of the stuff that Ramsey says but that part where he says that you need to have paid thousands in interest to have a 780 credit score is complete BS. I'm in baby step 5,6,7 (currently saving for a downpayment on a house). I'm in my mid-20s, have zero dollars in debt. I paid for my own college out of pocket by going to a state school. I use credit cards to do my every-day shopping but pay them off completely at the end of the month. I have gotten a couple hundred dollars in reward points from using them. I have an 802 credit score and I have paid ZERO dollars in interest in my life. Play the system, don't let it play you.
EDIT: I only care about my credit score so I can get good rates for when I buy my house. so I can pay even less in interest.
My credit score got lower after receiving more credit but they want me to do installment loans to improve the score. Well darn.
I feel like this is great advice and something that we should all strive for but in reality it just doesn’t seem to play out. Rachel might be able to find ways around an apartment rent or a Verizon bill by searching for another carrier but for many of us we don’t have that luxury. For instance I can’t leave the town I live in because I have joint custody or from a former marriage and I have two small children so I’m not going anywhere for the next 10 to 15 years. Furthermore the rent in my area is nonexistent it’s almost impossible to rent anything here as the market is so tight. In addition to this home sales are greatly affected and everyone is asking top dollar in this sellers market and homes are disappearing in just days. And banks are not loaning because they can choose to be picky because there is literally a line of preapproved people waiting for the first home to go up for sale. Everything is overpriced and no one will lend you money unless your credit is really good. And if you are a family trying to survive and you have a few kids and your credit score is messed up you can’t even find a home to live in. And as far as the carrier goes we have a lot of hills and valleys around here so we don’t have a choice to just switch carrier plans Verizon is the only one in our area that even has cell phone coverage. The same goes for Internet coverage if you live outside the city you have to go with only two local providers and they are literally charging three times the rate of the same Internet providers that are in the city that will not take the risk to hit the rural areas. I feel like if you start off life in your 20s or 30s or you’re young like Rachel and you make all the right decisions and don’t end up in a bad divorce then you’re very likely to make good decisions financially. But with most of the country dealing with divorce issues it seems almost impossible to not have accumulated debt and to rely heavily on credit scores when literally you can do virtually nothing without one. In the end I’m just not sure it’s worth it if I have goals to own a $300,000 - $400,000 house but it’s gonna take me 30 years to be able to do it because I have to live in a home in my mid-40s that’s only $150,000 and then spent 20 years trying to save every penny I have to pay for cash in full for a home when I might have just 10-15 years of my life left to even enjoy it before I pass away.
Sounds like you have all the excuses figured out. Now work on the plan to do those things to make your life better. Get creative with living arrangements, find someone in your same situation and split rent.
@@justinacase2623 I agree with Tom. A credit score is a necessary evil. Yes, you can work around it more than many will admit, but a lot of times, you can't.
@@mysticaltyger2009 there comes a point if one follows Dave's plan, it is no longer required nor needed.
@@justinacase2623 I’m married 46 why in the world would I split rent with some random stranger? I have a wife and four kids I’m not in my 20s coming out of college my friend.
@@justinacase2623 yes if you follow Dave’s plan and your life is perfect and you don’t have to deal with the real world issues like a divorce at the age of 46. One thing I want people to understand is there are many of us that try and do everything correctly in life but still get shafted and things like when a spouse abandons you and literally takes everything you own including your home and destroys your finances. You may have all the intentions of doing well but the world is not perfect and unfortunately you do have to rely on credit scores to survive at times. Not everyone goes to college then gets married and then has kids and then pays off all their debt through their thirties to 40s in that order. Simply joining the military and serving your country can completely invert that equation and with good intentions. Many of us in the real world have to deal with being shafted along the way and are just trying to survive off the tools we have in our 40s and 50s and often it’s not because of bad decisions we have made. And if anything you guys should be quite aware that 75%-80% of divorces are committed and filed by the wife and it is very probable and very easy to lose track and put everything into your marriage and get completely blindsided in the end having to restart your life in your 40s and 50s. At that point you’re in the same boat many of us men find ourselves as well as many single moms just trying to survive financially.
People need to get on with it and say why your calling not justify all your misfortunes.
Just pay off your balance every month on auto. I make $1000's in rewards every year, simply don't put anything on credit that you can't pay in full as soon as statement closes.
The only people who worry about credit scores are people who want to be in debt and stay in debt.
I beg to differ. I've bent over backwards to get myself out of debt, but I an a renter. You have to have a 660 to even apply for rentals near me.
@@OhanaLulu Don't stop believing, not just a song! You are a CC companies dream!
@@OhanaLulu did u ever hear Dave talk about renting with no credit score? Very informative. It can be done, don't believe what the bottle blond up front tells you. If they waited on good credit scores for renters place would be empty, just like car lots.
16yrs of credit, 3 house's, too many auto & misc loans= 815
Scamscore! I will be out of debt by the end of the year. No delinquent problems. My friend has a higher score which she brags about, but is deep in debt. Mine is fine but not as high. I don’t focus on that. Getting out of debt is my main focus.
I live near DC and have seen my credit score drop after killing off credit cards. Once the car payment is gone will probably force me to move to a non-traditional lender to buy a house.
Whats a non traditional lender
You don’t need a good credit score to get a cell phone line. Only to finance a phone through them. They will give you a line with bad credit. Just $0 in financing.
Absolutely terrible advice. People should be responsible for their actions. It's not a credit cards fault that you're to incompetent to measure your spending habits. A good credit score results in lower mortgage, more home and renting options, lower insurance premiums for health and auto, and credit card rewards which on average amount to a 1.5% return on all common expenses like groceries and gas when utilized correctly. Spending money you don't have will always be a bad thing whether you do it with a credit card or not. Manual underwriting is not the holy grail, it's an inconvenience for loan agencies and you will pay a premium for it.
I agree, but there are “tricks” to getting better credit such as diversification of the types of credit you have, percentage owed on card, in addition to paying on time. People don’t know enough about credit, while others may just take the right turn unwittingly.
@@Justsayingthat you're totally right. It's really sad when people think you need to overspend or go into debt to get a good score. Literally all you need to do is open one or two cards, buy groceries, and autobill your car insurance to the card and pay it off each month without missing any payments. It's not rocket science.
Best explanation!
Thank you
A Ramsey score would actually be pretty cool
I have a Vantage Score of 760, and I've paid roughly $4,000 in interest. Too much, for sure, not worth it, for sure, but nowhere near the reported $80,000. I imagine in 20 years time, without ever carrying a balance, it might feasibly be $8,000, if I get lazy or make a mistake.
Rachel's reaction to Dave's joke 🤣
Ramsey score! Brilliant))))
You don't need to be paying interest to have a 780 credit score. I haven't paid interest on any loans since my score was a 700 and now it sits at 780.
Haven’t paid a penny in interest in 10 years of having a cc.
But this doesn't help us. We are not millionaires who can pay cash for everything. But we need credit to purchase homes rent apartments and live daily.
Dave wasn't always a millionaire either.
Great show.. Thank you.
All I heard was "Ramsey Score" YES PLEASE DO THIS!!!! This would change everything!
The Ramsey score... 🤔 I like the sound of that!🤑
Debt is the best. Learn to leverage it, not fear it.
well Im not sure a landlord will rent to you without a high credit score or is it legal for them to check on that?...
I'm surprised Dave Ramsey didn't scream at him
You really should make a Ramsey score and add it to the tools area on your website.
The "Ramsey Score" ??....YEEESSSSS PLEASE!!! Start to develop that ASAP !!!
I have to be honest, I'm not sure Rachel should be giving advice about "It's tough but I've had to do it." That just rings hollow for me because I seriously doubt that she's ever struggled financially or needed a credit score.
As for Dave, I always have to laugh at his perception of landlords and apartments. No private landlord or managed apartment complex cares if you are paying off debt, they care that you can pay the rent every month and not drive up their eviction costs. Having the mindset of "If they don't care that you are paying off debt, you don't want to live there" is just hilariously off base. If you are dealing with a REIT or any corporate apartment management company you need a decent credit score if you don't want to have to pay 2x the deposit. Some smaller landlords might not look at credit, but even today most mom and pop landlords do a background and credit check to see if you'll pay your bills. Landlords and employers use a credit score as a measure of your responsibility and if you have a low score and demonstrate you can't be responsible enough with your own personal finance, they take that as an indication of how you'll handle your job responsibilities.
Yup, so pay a big deposit, tell them in a year you want it back.
@@justinacase2623 Most people don't have the money for the deposit. That's where his attitude kind of comes off as being off base when it comes to the realities of renting.
@@TeKnoVKNG23 problem Dave sees is these same people have 1000.00 I phone, leased car and full blown cable TV. Saying no is not in their vocabulary.
Love it! Interested in the Ramsey score
It's not an indicator of financial health but it does help you leverage your money to build wealth. Ultimatley we have to get a good credit score to be able to leverage money. Being debt free is great but leverage is the way to build wealth in my opinion.
Dave nails it again!