FICO Credit Score - Dave Ramsey Rant
HTML-код
- Опубликовано: 8 сен 2024
- 💵 Create Your Free Budget! Sign up for EveryDollar ⮕ ter.li/6h2c45
📱Download the Ramsey Network App ⮕ ter.li/ajeshj
🛒 Visit The Ramsey Store ⮕ ter.li/7vyom2
📞 Have a question for the show? Call 888-825-5225 weekdays from 2-5 pm ET or send us a message ter.li/n88ly5
Explore More Shows from Ramsey Network:
🎙️ The Ramsey Show ⮕ ter.li/ng9950
🍸 Smart Money Happy Hour ⮕ ter.li/9gcp3d
🧠 The Dr. John Delony Show ⮕ ter.li/2u3mc0
💰 George Kamel ⮕ ter.li/1elws8
💡 The Rachel Cruze Show ⮕ ter.li/n2u6jc
💼 The Ken Coleman Show - Highlights ⮕ ter.li/1rbjr2
📈 EntreLeadership ⮕ ter.li/ktxv2k
Ramsey Solutions Privacy Policy
www.ramseysolu...
Dave should put out a list of all the mortgage companies that will give out loans to people with no fico score.
Under writing look it up
Also I have a morgage and car ...no credit cards ever. Bad medical score on FICO. And yet I did get both.
Tavia Contreras what you talking about part of the underwriting process is to look at your credit score and history no bank will touch you without looking at your lending history it’s as simple as that
Churchill Mortgage is the big one he always talks about.
Austin Martín Hernández ...Yeah, and buy your dream house with a pool, when your kids are 30 years old, and you too old to enjoy it.
You are tight Dave. I remember when I canceled a credit card and the person on the other side said " that will lower your FICO score". I told that person I tell credit card companies what to do... they don't tell me what to do.
Thomas Burns yep! I closed my credit card and line of credit a month ago after being debt for 7 months. I just didn't see a point when I could just pay cash. Oh, and if I can't pay cash then I wouldn't buy it. Mind blown lol.
I'm glad mine are closed too;. I paid mine OFF and I will not look back.
I have a credit score of 820. I have two credit cards and I am proud of it. I see credit as potential capital. If I use the capital to buy some such as a TV, thats a waste. I use my credit to pay for IT certifications. Use debt to make yourself into a better asset. Use credit like debit, you will never go in depth. I have never paid interest on any of them.
This guy is right it is not a measure of success. The funny thing about the banks, the give credit to those who do not need it. If u need credit, do not get it. Seriously do not get it.
Thomas Burns You sure showed that minimum-wage customer service rep.
danneskjold I used to work as a quality analyst for a call center. Those customer service rep make way more than you think. Plus commissions and bonuses.
playing kissy face with the bank 😂😂😂😂😂
We went through the hassle of buying a house last year. The difference a few points in our FICO scores made on the interest rate was astounding. Even with a large downpayment, it helps to have a good score.
You're still getting yourself into debt
@@eara8426 When buying a house, most people are.
@@jennifertackett2241 So your advice is to go into debt and pay hundreds of dollars a month in interest?
@Jason F Did I say that? No. It's possible to pay your bills in full, on time, pay no interest, and have a great FICO score.
I am 20 years old and started watching dave ramsey this year. I have started building my credit score since i got out of high school only to realize i dont need it. It truly is stupid and only results in debt and stress. Thank you Dave! You are amazing!
How will you get an apartment
@@ryanthepianoman27 He’s not telling you
I have never considered my FICO score to be a measure of my success, my success is determined by the net worth on my balance sheet. I am debt free (20 years) except for one credit card that is paid in full each month. The card is for my convenience. I don't give hoot about my FICO score cause I never intend to borrow money again. Debt free is a wonderful feeling and I fully intend to stay debt free. good luck with your financial matters.
I have a very high score, and I dipped because I paid off the cards last year. I had to laugh, like forget you all, I have everything I need, don't care about the score anymore, they take people for idiots.
Granted*
FICO score is an extremely poor measure of success, but lots of companies DO judge it so many people have no choice but to worry about it. Many employers will check your credit score and won't hire you if it's bad or you don't have one, because they think it means you're irresponsible. This especially includes upper-middle class jobs at large companies. I know Dave hates credit cards, but a lot of people have no choice but to make sure they have a decent credit score.
I haven't seen evidence of any employer who would refuse to hire anyone due to having no credit score. Some employers do perform a credit check, but what they look for are negative items on the report, such as bills in collections, which might indicate that you are irresponsible or susceptible to bribery/blackmail. You don't need to maintain a credit score just for employment.
A good fico score is not a measure of success it's a measure of your being responsible
I got a job at a bank and they checked my credit.
Im guessing then that this method of no FICO score is really only beneficial if you don't plan on renting an apt, or working for anyone other than yourself. Because at this point it would be assumed that youre buying your house or car in full cash
All a FICO Score shows is your ability to pay off money you borrowed.
Paying more than you've borrowed.
@@dmana3172 Not if you pay it off every statement.
@@jdubo1998 I agree.
For normal people here is what a lack of GOOD FICO will cost you:
*You will pay more for your car insurance
*You will pay more for your renters insurance
*You may be turned down for a nice apartment
*You will pay way more for your house even if you have 20%+ to pay down
*Larger deposits to get utilities turned on
*And an increasing number of jobs wont interview you
Dave is absolutely correct that this number is not a good metric for these things: but this wont change that many places use it like it is. Like he said THEY WONT RENT TO HIM: great for him he can go buy a building, if you can not you need to data point if you want a nice place to live.
Oh and for the record that "manual under-riding" is going away. FHS, and so on now have MANDATORY FICO. Yes, it is a bad system, but good luck getting that to get better before it gets worce
agreed. sometimes the average person needs to finance something like a car or get into a nice apartment or buy a house. the interest rate is much higher for those with low fico scores. it would be nice to have big cash and be able to buy a house with cash but most people cant do that. credit score is very important to the average joe.
godrulztheearth Even if you can pay cash it can be dumb to do so.
Let us say I can use my cash to earn $5000, and the credit to keep my cash has a cost of $2000. So I should have the 2K to give up 5K?
That makes me 3K poorer...
Credit is a tool. There are times it is bad and times it is good. Rules that are all one way or the other are not sound money management. The goal is controlling the delta and picking from your available options that which has the best result for the least over all risk.
i'm in the process of paying off all of my debt and i should be done in 2 years. my plan is to keep my credit cards around just for emergency purposes and to keep driving up my credit score as i pay them off. a few years ago i scored 670 from transunion and exuifax but now i'm at 759. he is right by saying that paying tens of thousands to establish credit is dumb but all i'm going to do is pay the monthly fees on my credit cards to keep my score high and that wont cost me much.
Debra Johnson Some yes some no. There are plenty here who base on credit.
And the policy is become standard practice with larger and property management firms
Debra Johnson Do you pay to keep your credit file frozen?
The higher my Fico score is an indicator of my lowering of debt. That's how I use it. The higher my score the less my credit cards are the lower my car payment, and mortgages.
Car payment and mortgages = debt
I love the way Dave emphasizes being outrageously generous every time he mentions becoming wealthy ! That tells me he see's wealth and being charitable going hand in hand !
They do, just a little. You cannot give what you do not have. But I know your point to be true. The more poor a peoples, the more giving they typically are, in general. But, only in general, not always.
Amen!!!!
This video changed my life a year ago .
I’m a huge Dave Ramsey fan and I follow all his advice because it works, but this is the only thing I disagree with Dave about. I keep one credit card and use it occasionally and always immediately pay it off just to maintain my credit score. I never pay interest and I always have a zero balance and I am very proud of my credit score. Regardless of what Dave says, the reality is that the vast majority of people need good credit to buy a home. I just don’t see a way around that.
Home Purchase will mainly depend on your monthly income as the Bank will put you through a stress test in case interest rates go up. I've never had an issue buying a house with no credit score and I own several properties.
You can't rent an apartment, get a mortgage, get a car, get a loan for medial services, get certain jobs, get car affordable insurance with no credit. Not to mention get a cell phone, certain utilities, co sign for a family member in an emergency. Having a good long credit history is irreplaceable when you need it most.
You can get a mortgage without credit bro , it's called manuel under writing you can also just straight out buy the house or give a more than reasonable down payment, also there's plenty of apartments that will rent out to you if you give a 3month advance , granted this is all alot of trouble however it is possible to do also there's alot of used dealerships that will just take your cash and sell you a car without credit
Have fun paying loans
I had an 831 a year ago. Today less than 600. Takes years to build up that number and a very short time to blow it. They only care about that number today and not the good history you've once had. I won't do bankruptcy as I want to pay off my debts, but after that I'm done using loans. I don't care if I have to be homeless. This show is extremely motivational.
you can grow FICO without paying interest in terms of credit cards. Its a reflection of payments on time, credit usage, and length of credit history. Some other factors to a lesser extent.
exactly right. if you pay your bills on time (utilities, insurance, etc) and pay any credit card balance every month, you can have a high fico score without ever paying any interest.
kbjcda negative
Sorry but you are mistaken. My FICO is 850. I'm not wealthy and I don't pay interest, except my mortgage which will be done in August 2017. I have 3 credit cards, use one of them very sparingly and pay it off every month - - never carry a balance. I had one car loan in the early 90's. Paid it off a year early in 1994 and haven't made a car payment since. I agree with Dave that a high FICO score isn't a measure of success, but it is a measure of paying your bills on time and being responsible.
kbjcda
cool story bro
kbjcda -- Paying utility bills on time usually does not have an affect on your credit report.
This guy has more sense than a lot of people and it's just common sense
The only reason the Dave Ramsey channel has only 208.000 subscribers is that the truth hurts.
Winston Wolf
I love everything that is the truth heheheh
Watching now and he has 1M. Some people can take the truth.
I was able to pay off my credit card debts with the help of George Gibbs the cyber guru, A old friend of mine to introduced me to 4FICOREPAIR INC and i get to work with him. He help me pay off all my credit card debts and He help me boost up my credit score to 821 excellent within 72 hours, He's the best when it comes to credit score. His services are cheap and affordable. George@4FICOREPAIR,Com
Like most videos Dave Ramsey has that deals with Credit and Credit Cards, there are a lot of half-truths and false information here. Your score is dependent on the following items: 1) Credit Utilization - If you are using a large amount of your available credit, your score will lower, lenders like to see someone that has a lot of credit, but is not using most of it. 2) Payment history - If you make your payments on time, it shows you are a dependable borrower. 3) Derogatory Marks - If you had a bill the went to collections, etc, lenders do not like to see that. 4) Age of Credit History - How long have you had credit accounts. If you have a long history, lenders like that. 5) Total Accounts - Lendors like to see that you have or had a good number of accounts. What good is having no Derogatory Marks when you've only ever had a single credit account ever? 6) Credit Inquiries - If you have a lot of recent credit pulls, lendors might be worried as they will wonder why your credit has been pulled often. Dave is right in that FICO doesn't show anyone anything about your income level, but I'd make the argument that just because you have a lot of income, doesn't mean you will make payments on time. There are some stupid rich people out there, just like there are a lot of smart lower-income people out there. Nothing in the FICO calculations takes into account how much interest you have paid. I have credits cards and pay off the balance every month in full. I have had 2 car loans in my life and paid both off in under 2 years because I didn't like paying that interest. My House loan is a 15 year mortgage at a low interest rate. Between all 3 of these loans (2 car loans, house loan), I have paid less then $20,000 interest in my entire lifetime and my FICO score is over 800. These are FACTS. His rant saying you'd have to have over 100,000 in interest payments is totally false. Dave is just trying to make sure that people that can't handle credit, don't start down the path.
Jack Kielsmeier jack I have a question for you....about car loans
Jack Kielsmeier boy you just revel in your slavery don't you?
I remember when I was buying my last car and the salesman said that my wife could buy a Ferrari based on her FICO score. The funny thing was that she was a housewife and had been for 5 years. I wondered at the time, how could she or even we afford that. Now I know it was not based on our ability to pay. WOW!
FICO is not a measure of wealth, it's a measure of the responsibility and discipline of your spending habits, like paying on time and maintaining low balances.
I have a high score (800+) and have not paid interest on my credit cards in decades. I don't carry a balance beyond the end of the billing period.
jvolstad When you're as rich as Dave Ramsey, we are all ears for your advice. Stop bragging about your credit score on every single Dave's video.
I am positive you have over spent all these years, even if it means you haven't paid a dime in interest.
Exactly. Dave Ramsey doesn't know what he is talking about.
jvolstad so does that mean your networth is in the millions? I think his point is generally, a high FICO score is not the indicator of wealth and success. So it's only an indicator of showing how well you pay back. That's all. What's more important is your networth. To tell me hey you are so good you can borrow a million dollars now, that's great. That's great??? I don't know. It is a scheme to me. It's only showing your borrowing power, which only adds up to debt potential. That's what I gather from his point.
Devon Norton jvolstad so does that mean your networth is in the millions? I think his point is generally, a high FICO score is not the indicator of wealth and success. So it's only an indicator of showing how well you pay back. That's all. What's more important is your networth. To tell me hey you are so good you can borrow a million dollars now, that's great. That's great??? I don't know. It is a scheme to me. It's only showing your borrowing power, which only adds up to debt potential. That's what I gather from his point.
Stanley Sylvain I think a high FICO score shows responsibility when using credit. As I mentioned before, I pay off my balances in full each month. There are benefits when using credit cards to purchase services and good. I recently got back from a trip out of state. Charged my airfare, car rental, hotel, meals, gasoline, and entertainment. Next month I will pay my balance in full.
For people who can not control their spending, by all means, cut up the cards.
To me, a high fico score tells me that you PAY YOUR BILLS ON TIME! My fico score is 816 and I am proud of it! No, I am not wealthy, and I have never heard that before that you will have a high fico if you are wealthy, or think that you will. I'm 77 years old, raised 5 children, and pay my bills!
True, my FICO score is at an 820. The thing with these videos is that they speak at a level that may way above or beyond where a person is standing at at the moment. It's apples to oranges. My father is successful and has retired comfortably with no financial stress and he told me take care of your credit score and protect it. I have a friend that is a millionaire and he told me the same thing, buy he explained to me why. Guys like Dave Ramsey can walk into a car lot and say I how much is that Ford raptor ??? Oh...okay I'll take and buy it cash no issues. Warren Buffet can come into town and buy biggest mansion for sale on Ocean Drive and just wire money from his bank and done. The average American dose not have the leverage or the luxury to walk into a car lot and drop 11 to 30 thousand dollars on car. The average American dose not have the luxury of buying a house cold hard cash, FICO is the only leverage they have at getting a decent deal. I'm debt free and I followed Ramsey's baby steps but I had to start somewhere. I remember being 18 going to try to buy my fist car on a Walmart salary. I had no credit and what I had saved did not cover the entire cost of a decent vehicle. The sales man simply to me come back with a cosigner or after you hustle up enough money. My father co-signed for me on a small single cab Ford ranger that had 11 thousand miles on it. That is how I started to build credit and slowly doors began to open. Now I use credit if I need it but if I can afford to buy it straight out I do. My millionaire friend started of the same and now no longer uses FICO.
And you are not wealthy hmmm
Congratulations I guess? Lol
Dave is 100% correct, It should all be based on your income and job history!
Right now 0 sound good to me, if you pay off or pay more then the minimum, that won't improve your score. The only reason for a FICO is to lull you into borrowing more money. I went cash and carry. No more credit. I broke my chains and am now a freeman. If I can't afford it, I don't need it.
I totally agree with what he says regarding credit scores. The thing that really angers me is why my auto insurance rate is based on my credit score and not my perfect driving record. It's a total scam IMO.
There are plenty “millionaires” running millions of dollars through their centurion card/palladium cards, and getting tons of bonuses back on their normal spending. The key is to be disciplined and pay off your balances every month so you don’t pay interest. You also need to find the right card that fits your spending habits (travel, dining, etc.) so that you can get a nice return on money you are already spending, 1% to even 10% in some cases.
My son never had a credit card and saved 10,000 for a down payment and the VA wants him to get a credit card to get a Fico score. He was in the Marines they still want him to get credit first.
The CC trick is to always pay FULLY the amount on the credit card at month's end no matter what !!
But Dave's main point has to be appreciated that having a CC makes it easier to purchase something not essential.
Money is meant to be spent, true, but one must be highly disciplined in saving for your future. (retirement)
It's called self-reliance !!
I could not get an apartment without a FICO they said hit the road Jack!
I've been a fan of Suze Orman for years and have recently started listening to Dave Ramsey. Once thing I've learned about getting financial advice is to do what works best for you. I don't heed everything they say because there is not a one shoe fits all situation. This piece of advice he is giving here I disagree with. Sure it's not a measurement of success but to the average person who cannot buy a house or car without financing keep your credit score high as possible or else a high interest rate will follow.
0 APR for 24 months tells me I didn't pay a dime over what I used.
Even thought the FICO score is not a good measure of financial success, we poor people have to maintain one. The financial institutions of the USA use it as a measure of the likely hood of they getting their money back and you sadly need it for every day things like, renting an apartment or buying a car etc. So until you guys become multi millionaires, make sure to keep a good FICO score.
You don't need a credit score to buy a car. Just save money and pay cash for one. You don't need to be a millionaire to live without having to take out loans.
I had no credit when I bought my house. I put down a 40% down payment and had no problems. Paid it off in 11 1/2 years.
That's not just 27 year olds, I'm 51, I didn't know this. They dont explain this like you do.
It ain't stupid Dave, its ignorant
I totally disagree with you I have a perfect 850 and have never paid a cent in interest so you sir are wrong about this one
Yup
False
Oh my fico score is 573 and 2 months ago it was 578. I'm 59 now and legally blind. when i was younger i believe i had a fico of approx 820. Now i own a 50 dollar mattress from Ikea. My sister's fico score is probably worse cause she's driving Colombo's junker
omg! Dave . you just taught me something new. you are so right. i have heard these financial guru talking a about a fico score, and i did not know that this is just their way of scaming us to keep getting into debt, so we can brag about a stupid fico score. Thanks Dave for your insight and wisdom.
The system brainwashed us thinking that If we close all the accounts, the credit score will decrease and nobody will give us money.
this is exactly the message I needed to get. i was very discouraged to see my fico score fall as I paid off the last remnant of my debt that was sitting in collections.
I get that it's counter-intuitive when buying cars but how are you going to finance a house without it? Not everyone can buy house cash.
Maybe it’s hope for those that one day want to be able to
Yeah. Just looking up to Dave W-hatsapp2602030909
“You’ve been playing Kissy face with the bank”
I have an 820, and haven't paid anything in interest
Right! I have 730+ and I pay $0 in interest(100% paying on time)
Dave doesn’t always have the best advice.
Exactly!
Such a malicious cycle. We are encouraged to use credit cards to overspend for Christmas. When Christmas is over we are encouraged to refinance our homes etc. to pay for the credit cards then come tax return time we have every advertiser trying to snatch those refunds out of our hands.
Stopped in my tracks as I was writing "but what if we want a mortgage?" - Slowly deletes comment and hangs head in shame.
When ever I'm about to make a stupid money decision I come back to this video. It's been years now.
Ole Dave is off base on this one. First of all, this is a classic example of a situation where his wealth has caused him to loose touch with the common man. He is right in that a fico score is not a measure of monetary success. It is, however, a measure of trustworthiness. He is dead wrong in that you have to spend thousands to build a high fico score.
Personally, I currently have around an 800 fico score. I have spent a little in interest over the years but nothing like what Dave is talking about.
If you're not wealthy see how far you can get with a low fico score
I hope one day the credit score dies. It's so stupid that it goes down when you have paid your debts.
Dave, not all of us have millions of dollars laying around to BUY buildings. Just to get your LIGHTS turned on, they check your credit. I'm sorry but I'm not paying a ridiculous "non refundable deposit," for a basic living necessity.
MamaNeedsAGrande Is just how the system in this country works, how else would you buy an apartment when you don't have 80-100k+ sitting in your net worth? You need a mortgage, and good luck finding a low interest mortgage with No Credit.
Hey it is not a perfect system but it's definitely better than paying everything upfront with huge inflation rates like some other countries.
but you could if you listened to him and live debt free
Then go and make that amount of money you guys are more focused on having a good credit score instead of increasing your credit score
Income*
He just want you to live below you means.
Somehow my FICO score isn't going down. I've been debt free for 4 years now. I only had a car loan and credit card. I paid both off and closed the Credit Card. I have followed the baby steps, I have the 6 month expenses in my emergency fund and save 15% into my 401K at work. Still my FICO on CreditKarma shows my score gradually increasing. I'm at 663 now. I would really love to see it at 0 but it's not going there.
Asa Ellison I wouldn’t trust what credit karma says honestly
A credit score is just an indicator of how trustworthy you are in repaying your debts nothing more.
My good credit score got me a beautiful truck that's almost paid for and a nice apartment, I know a lot of people that don't have either because of their bad credit history so whats wrong with that? I'll keep my good credit thanks.
Dont Barrow money just hold it for 20 years and hope you become a millionaire with your number 1 resource to wealth your income.
This is the stupidest advice ever. Don’t play the FICO game? That means don’t get a mortgage, don’t get a lease, don’t get an auto loan, don’t get employed. Everyone checks FICO these days and the higher your FICO the better your interest rates and job opportunities.
Not having a FICO score won't stop you from getting employed. You also don't need a car loan if you pay for your car in cash.
GreeleyCPS for many jobs they do run your credit. At least in my industry (finance). And how do you save up 20,000 to buy a car if you don’t have a job? And how do you get to work if you don’t have a car? This guy is smart about a lot of things. This is not one of them. You need a good FICo to get great interest rates. So when you do buy a car or a refrigerator it’s just like paying back a cash loan with 1 or 2 percent skimmed.
In order to be debt free we need to save. Unfortunately we do not live in the 70's and the average rent is over 1000k that takes more than 40 percent on the average net income. Even being debt free now days is hard not to live pay check to pay check. Not everyone has millions to go and buy a house cash. I agree with you in some areas, but then you lack understanding on the average person situation. Rent is skyrocketing and people need places to live. I live within my budget to be able to afford my rent and utilities and I save 300 a month and at the end of the year, I still can't buy a house cash. However, if I make. Mortgage for 85k my monthly payment with taxes and insurance will be around 600. I can fix it while I live there and that will bring the price up. So why being in debt with an 85k mortgage is not better than renting for 1300 a month?
My eyes just opened. Thanks 👍🏻
You don't run up a FICO score by insuring debt. Not even mountains of debt. It's called flexing the financial muscle, getting good rewards, and free flights and stuff. Now, DO NOT run up debt. Pay your cards to balance zero monthly. I liked Dave until I heard his theories like this.
double edge sword here; people will not touch you without a credit score.... some companies will not even work with you PERIOD without a credit history.
Wrong.
I respectfully disagree with Dave. I use credit cards and I never pay interest rates. I am able to build my fico score for free by paying the full balance each month. In addition, all of my cards have $0 annual fees. I am actually saving money & building credit at the same time.
High Fico score= Broke and psying debts off in minimal payments.
No fico score or credit score= Money saved up and afford things without a credit card.
Or the more likely scenario, high Fico score = Paying in full each month and at any income level while saving the majority of that income. Can also afford expenses without a CC, but enjoy getting 5% cash back on things we need to pay for anyways.
Paying minimal payments is dangerous. It leads to debt building up, which makes it more likely for the person to not be able to afford the payments anymore, which leads to late payments, which = low score.
You need your FICO score for almost everything I hate this system, you need it to rent, buy a car or a house, what’s next? Run your FICO score before going to Walmart
I have had 30 credit cards in the last 5 years and netted 6,000 in sign-up bonuses alone. If you have the discipline to NEVER carry a balance, you are taking the banks' money.
What is Real? Calm down Bro. CC companies are worth hundreds of BILLIONS of dollars. Your $6,000 is not even dust to them. You’re not exactly making them come to their knees.
He's making money on credit cards while most people are slaves to credit card companies.
Mike Nelson would you rather owe 6grand to the bank, or have them pay 6grand to you?
What is Real? Show me your ways
What is Real? Facts!!
Dave,
I work in managerial accounting and most employers will check my credit score before hiring me. How would that work for me if I had no score? Thanks in advance!
Matt Dave actually talked about this before! He says to address it with the employer, I think. If you know they’ll check your credit score, be upfront and tell them that you don’t have one. You don’t borrow money and don’t owe anything to anyone.
They don't check your credit score, they check your credit report for potential red flags. Therefore, having no score should not be an issue at all in terms of employment.
They have to have something to go off of they don't know you
Heard this in FPU, came back to hear it again. Never owned a credit card, never will
I don't think this is a good advise. unfortunately we all normal people needs a Fico Score. But you need to learn how to use a credit card in your favor. After I took Dave's class years ago, I paid all my debts and I never had one again. Also the bank work for me because I use one credit card for everything, I paid the total balance at the end of the month, and the credit card give me miles that I use to travel. Also they pay for car insurance, if I rent one. Once I lost my flight and the credit car reimburse me, for the hotel, uber, meals. I don't pay interest or any annual fee.
Dave goes off the assumption everyone makes $50K a year and live in low rent areas. If you have the money to buy a complex, why would you live in an apartment? That means you could buy a house outright and bank any increased valuation of the property and increase net wealth. You start to notice contradictions in his strawman arguments.
Building credit history isn't hard and can be done without paying a single cent in interest. Do not spend a single cent of your paycheck and pay for everything with a credit card (if info is stolen it's on the CC company and not your cash), pay off everything when it's the end of your cycle; without interest. Never spend as much as you make, and be disciplined in spending habits. You can go from no credit to being able to get auto loans and such, if needed, in around 10 months.
100 percent agree man I’m literally doing exactly that and haven’t paid any money not even a cent in interest
I am from Romania and when we want to get a credit card or a mortgage or any type of borrowed money the bank analyzes the request based on the income and the history of payments, if it exists, if not, it's even better.
I get it. Why would you borrow $10 if you have $10? Purposely putting yourself in debt, so now part of me is working to pay you back. Like my dad says "as long as I owe you money, you'll never be broke"
I hear you dave, but the world wants it now. you become rich at young age, you live it up.
now you learn, now you make sure you stay rich by not being in debt .
for the rest of us 9 to 5 we want some of the life. to own a sport car, dream vacations, buy nice things , big boats, atv rides. we want to live it up now, not when we're 70 to old to do things.
life you never know how long you will live
Daniel Garcia and that’s why you will stay broke.
I've never paid a cent of interest and have a 800 plus fico 9 score. Dave needs to do a little more research.
Exactly. All a credit card does is change your payment method and even makes payments more convenient for you. For some reason, Dave continues to dig into conspiracy.
@@astrophotos8368 Haha! He is kinda like the Alex Jones of the financial community. Especially in the way he speaks and throws temper tantrums sometimes.
You never paid interest but you still took a loan out and paid the bank. That’s what the rant is about
FICO score is a financial responsibility score. High score means your trustworthy with money.
also the use of FICO to determine your rate or eligibility for a loan makes sense because it is the most standardized reflection of your ability to make payments on time. Many banks will also take into consideration your net worth or collateral when determining eligibility. Dave likes to denounce anything that involves debt, but leveraging debt can create immense opportunities.
Phillip Clark He's mantra is Cash is King. If you can't afford it, why get into debt for it? Save and pay cash.
I understand his mantra, I just think that it can give false ideas about debt
fico should only be used if you are borrwing money....not a job or an apartment or insurance etc.
Nobody said FICO was an indicator of success. It’s an indicator of creditworthiness…that if you borrow money your pay it back. That’s it….
Thank you for this video. It's what I really needed to understand.
Dave's wealth puts him in a position where his FICO score is not necessary - he can put millions in cash down for whatever he wants. For most of us, we have to have a decent FICO score to rent a decent apartment, get a reasonable rate on a mortgage, rent a car, etc. Its not a measure of success - its a measure of if you pay your bills. I will not be able to plop down 300 - 500K for a house, I'll need a mortgage.
Same for health insurance - Dave could pay his way through any medical emergency in cash -a couple hundred thousand in medical bills would not hurt a multimillionaire. For me, I need to have health insurance because I am not able to do that.
So if having a high FICO score is "stupid", then having a low (or no) FICO score is "brilliant"? That may be true from his current perspective (with loads on cash on hand), but most folks can't get to his position without working the credit industry. I understand his point, but some of Dave's argument just doesn't add up for most folks...
Agreed
He’s talking about a mindset of more cash in hand vs less borrowing
Take into account his audience. People who are more than likely financially inpet and want an easy to follow guide on how to build wealth. He steers clear of FICO, becuase that means you need to borrow money, and that is what got a lot of people in trouble int the first place.
I’m sorry, but don’t agree with you on this one... I have a great credit , I’m debt free right now. The only interest rate I have ever paid is on my mortgage that I paid for about 4 years. I take advantage of the offers of credit cards with 0% APR for 12 to 21 months. In other words , if you are financially organized , you will be fine and will have your credit available for situations like you just mentioned.
I like Dave but I am going to have to disagree with him here.
You need a solid FICO score to get the best deal on a car loan, mortgage, personal loan and to get the best credit cards.
If you are stupid and carry a big balance, then yeah it will cost you. I dont carry balances. I have some of the best credit cards on the market (Sapphire Reserve, discover IT, Amex cash preferred etc.. ) and I never carry balances. Chase has paid me hundreds of dollars a year in rewards for hotels, cash etc. Only a fool carries balances.
Not if there’s no interest it won’t matter
Why are you getting a car loan or personal loan in the first place?
@@smileychess because they probalby need the money. Not everyone can buy a car with cash atm and need the card atm soo..
Nobody thinks FICO is an indicator of net worth or the like. It is not only what you said but it is what you said and that you paid it on time and when you agreed to pay it when you took the money. That is the point. It is a measure of how likely you are to pay money back loaned to you based on your past history. That is the point of it all. So, it does just what is intended to do.
How come Dave is not okay with FICO scores but is okay with having a mortgage? Getting a mortgage will give you a FICO score...
0% is the biggest car scam..why would a bank charge no interest?? do research on that one and you will see the scam.
A house is an investment, it goes up in value, its a place to live. EVERYTHING else that you go in debt for is throwing away your money in the trash in interest ESPECIALLY BRAND NEW CARS!!
MrJimmy3459 you're absolutely correct but a house CAN actually be a burden too if not done right. There is such a thing called "House Poor."
MrJimmy3459
Houses do not always go up in value. Some do some do not. All it is is determining what you want debt for or not. A mortgage is a loan, a car payment is a loan. If you don't want it don't get it. If you want it pay it off.
working shlub what’s the scam I can’t figure out
Poor Dave has been aggravated lately - you can hear it in his voice. He's far more patient than I am, so maybe his reserve is depleted? Merry Christmas, Dave.
Not all of us have your income. Getting an apartment, or a cellphone, requires good credit. In fact, some cellphone companies, require that you have a credit card. Credit is the new norm these days. You said in one video that your company supplies you with cellphones, but many of us do not have that option. We have to pay and we have to have good credit to get that cellphone. Now if you have lots of money, no worries. Not all of us are millionaires or aspire to be one.
so true. i can pay cash for a new car. but they won't give me a loan for one lol
I think it would be very entertaining to see Dave walk into an apartment complex and get denied as a renter then actually write a check and buy the building. Like a Dhar Mann video but real
Question. If the fico score is "baked into the pie". As a individual I cannot change the recipe, what choice do we have as a consumer?
Pay cash for everything. Which is doable for most things, except an expensive home or something like that...which is still doable, but may take longer to save the money.
Dave,would you know of any banks that write mortgages without a fico score,I am in New Jersey and looking into purchasing in a 55+ community,thanks in advance.
bikertod Churchill mortgage
But the corporate world bought into it hook line and sinker. You can even rent an apartment without the score. Even your car insurance is based on that score. Then they even conned how many people to give up their banking information to a better bump in your score!!!!
Thanks thou I just look up Dave W-hatsapp2602030909 for debt free
David! Credit Score is a measure of your credit worthiness, not your success. Being credit worthy, regarless of success, is helpfull in hundreds of ways. Lol
KACEY RAIN you didn’t listen to a dang thing he said
KACEY RAIN you do not need a credit score I know lots of people that pay cash for everything! Save up pay cash or owe people money it’s that simple unless you don’t have patients
The Real K patients? The ones in the hospitals?
@@RC_KAI A lot of employers won't hire you unless you have a decent/good credit score. It's stupid, but not having one can disqualify you from many well paying jobs.
@@elmateo77 you can create your own income without a job.
Who has an aunt who CAN give them $10 million dollars or a boss who raises their pay 1million dollars? FICO score is a tool not a measure of success.
This is an example of why Dave gets on my nerves sometimes.
poetentate then why are you watching his videos?
Yeah, he's off his rocker on this one for sure.
Why u keep watching him STUPID
"save up and pay cash for a house" of course ill start today when im 25 maybe when im 55 years old I'd have 250k saved up to pay for it
KevinusarTV I now own couples of 💳
I own a new house 🏡 got a new 🚗
all loan and debt are paid off and bad collections gone forever. Hacker Wilson are worth to worship 👕 affordable service is all you got +1(508) 731-4125
You can't disagree with Dave. He's NEVER wrong; well since he became so wise.
There's no way I carry thousands of dollars around to buy things. Plus online shopping. Why not have zero debt AND a good fico score.
I dont understand why people fail to comprehend that you can game credit cards by using it for essentials and paying it off at the end of the month.
Why would I say no to an institution that's willing to reward me for spending my own money? Is self control that scarce???
This is correct. And I have made a few payments late but I make great money and my score is still low. This fico score thing is crazy. It need to be changed.
No, what needs to change is your responsibility to pay your bills on time. Don't blame that on FICO. That's YOUR fault.
I'm 21 years and I came to the USA when I was 16, and people who like traveling around the world always told me to get a credit card. Then I got my credit card a year ago. My FICO score is 728 right now. This is what I do . Let's say I'm going to spend 1000 dollars a month. So I make sure that I have it cash and pay it off that way I don't pay interest. Basically I spend my money not theirs.
Our society is unfortunately controlled and manipulated by those who have the Power to create FICO scores. Unless you have millions inherited or saved the system is design to force you to utilize it. Now how well you play this system is Choice. Carrying no balances and live within your means and build wealth and leverage credit to me is smart!
He has a valid point but I do not completely agree. I have a FICO score between 800-850. I created that yes by making foolish decisions in my youth car payments mortgage credit card debt etc... I bought my second house with no issues because of this good credit rating. toady I use credit cards monthly and pay the balances in full earning an additional $80-$120 quarterly via cashback. I do not pay interest outside of mortgage and have one small consolidated debt that is almost paid off which I pay large sums on. My FICO score has been a savings grace.I want to maintain that score if I ever need it. I may buy big purchases on credit and pay them off promptly. He is right but he is alos wrong on this one depending on your needs income and were you stand.
biggest scam..my credit cards are all paid off...locked in my safe and wrapped in duct tape..all my cars are paid for. all i have is my mortage and i plan pay that off in 20 years not 30. i hear even car insuraance companys are using fico to set your rate!! are you kidding me??
Thanks Dave for freeing us of this programming
I dont have a need for a fico since I pay cash for everything anyway.
one day you might need more cash than you have. a good score would help then
How are you holding up now? Just curious. Still paying everything in cash?
Even house?