Once You Belong to the FICO Cult It’s Hard To Get Out
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- Опубликовано: 7 сен 2024
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Just keep one card for online purchases and emergencies always paid off every month and you will be fine.
Credit cards definitally should not be viewed as an emergency option. If you don't have the money day of purchase, you are using the card wrong and have placed yourself into the category of people who credit cards prey on.
Credit scores are becoming a social score. Car insurance rates even look at credit score.
That is a concern. Do rates go up with a 0 fico score? I honestly don't know.
where lol y would they
I Agree!
As far as I know yes. 3 days ago I switched insurance and credit score was a factor in what I had to pay. If your a billionaire I don't think they care as much. @@sf3413
What does a credit score have to do with a person's driving record? I'm glad I sold my car. A complete hole in your pocket.
You need a good credit score for something’s like getting a apartment and other things if you have no credit you won’t be able to rent a house or even buy a house if you don’t have all the money to pay it off not everybody has a million in the bank some of us need a good credit score to rent a apartment
Very true. Dave seems very disconnected from this fact. Most of us can't go to rent an apartment with a briefcase loaded with cash.
It’s ridiculous to claim that having a FICO score means you love or even have debt. Mine is 815 and I am what Dave Ramsey would refer to as Baby Step 7 - paid for house and car, no loans, savings & investments. I have two credit cards - one personal, and one for my business. I charge things and pay the bill in full every month, so I have never paid a cent of interest. This is money I would have spent anyway, and I track it by keeping a running check register where I record each item charged and deduct it from my remaining balance of “fun money” each month. I don’t spend more this way. In fact I find it easier to blow through cash when I am carrying it around
Exactly. 788 here, I have 9 CC’s, all paid off. I have 3 I use daily, and the others have just been racked up over the years.
I have $0 in any debt. With a high credit score. But I also budget, I have an emergency fund, I invest close to 20%, ect.
Dave is great for the average person who sucks at using debt.
The issue is you’re an outlier. Most people aren’t nearly as fiscally responsible as you are. Ramseys argument is that there is no opportunity for you to accumulate wealth via the credit card, and instead there is only opportunity to lose wealth due to interest. It also incentives you to take out loans, which is awful for building debt.
@@kyloren-cd8dk I agree with and respect this perspective. I know I am an outlier. The only thing is that Ramsey makes it sound like people like me aren’t possible, and that millionaires don’t do this. That is inaccurate and he uses misleading language to try and paint this picture. If he didn’t speak in absolutes I would not feel compelled to disagree
Ramsey's advice and comments are aimed at the people that need it. That is, people with no financial discipline, goals, or experience. That's fine, but not everyone is like that. Plenty of people have credit cards, never pay interest because they never carry a tab on it, and have a great FICO score. Some people can handle credit, some can't. The latter group are the people that need to be told about "baby steps" because they never figured it out for themselves. A problem with Ramsey is that he assumes everyone falls into this group.
@@MeowmyandMe you’re right, he is absolutely being inaccurate in that regard, but I believe it’s intentional. If he preached that it was possible for people to have a credit card and pay it off perfectly and pay zero interest, then he wouldn’t be helping people who have debt issues. It’s just more likely and feasible to be financially stable if you don’t have debt at all. If you wanna help the general population, you shouldn’t give them a situational outlier as a goal.
The system is a joke. The fact that if you have paid off your loans, your score can go lower is ridiculous. They want you in debt forever.
Edit: I’m not saying it WILL be lower if you have it paid off, but the fact that it CAN negatively impact you is ridiculous. You can also have no debt and great credit. Depends on the situation.
This has always confused me. I have multiple credit cards, all paid off, 100% on time payments, etc. and my score is 814. 🤷🏼♀️
This is a comment from somone who doesn't understand "the system" lmao. Majority of people rather fear monger and stay ignorant rather than to educate themselves.
It really is. Every time I make payments toward my student loan and the balance is getting lower and lower my score dips every time 😂 I’m like wtf
@@whothouwhat’s ignorant about it? That’s how it’s setup. My score has dropped ever since I paid off my student loans and credit cards. Good thing I don’t rely on my credit score, but the entire thing is a joke in itself.
Yep the system is designed to keep you in debt.I remember I tried to buy a car and I couldn’t because I didn’t have any credit, so I opened a credit card just to buy a car. Just used it to buy a tank of gas once a month and paid it off immediately.
20 credit cards?! They must open one at every store they shop at. 😆🤦
You can have 20 and them be legit good cards. They could be 20 of those Comenity and Synchrony store cards which I've never had one of because they are trash
Disagree, I have like 9 at this point. I use em for various reasons, I had opened one to get 6k dental work at 0% apr. now it just sits there.
But, in all honesty Dave is wrong. Ive built up a good nest egg for my age, I started using CC’s at age 18, never missed a bill, no interests or fees have ever been paid, and right now they are all sitting at $0. I still use em, yes they don’t build wealth, but also debt is a tool not a damn demon child. 😂 but I do agree most people suck at debt and should stay away.
Just say you don’t know anything about credit cards.
I'm confused as to why Dave doesn't think a credit score is important in any way... Any place I've ever tried to rent, that's all they cared about when it came to determining approval. Don't get me wrong, I don't want to care about my credit score! But it seem's to be important when finding a place to live anywhere. Am I missing something, how are you guys renting or buying places without credit? I'd like to know more about your process...
Credit scores only exist in backwards hellholes like the USA.
Any property management company will look at credit score. So if you don’t have one or a low one, you will have to get a co signer. They won’t even let you prepay a full years rent.
@@saintmatthew3098 Exactly! That's why I'm asking why Dave acts like your credit score shouldn't matter...?
@@Celwood It shouldn't matter because you shouldn't be dumb enough to live in a country that has them.
Not in my experience. If you’ve never been evicted, you don’t have a criminal record, you can provide proof of solid income, and you can prove you have a solid savings account, then you can bypass the need of a credit score. I don’t own a credit card and I’ve never had an issue finding a place to rent or getting approved.
Cold hard cash is the great equalizer. If you’re in your early 20s build up a solid savings account of at least 5k, preferably over 10. That should be your #1 priority. Let it sit, and that can function as your credit score in the sense that it proves you’re able to pay multiple months if you lose employment
I joined a radical new cult where we use credit cards, sometimes daily, but we're not in debt. We're called Financially Responsible Adults.
Well Dave leveraged himself into bankrupsy (and blames a banker that defaulted on him instead of his own poor risk management) so therefore not a single person in the world can responsibly use debt.
@@Mr_Fairdale you're in luck. Dave offers de-programming for those in that cult.
I paid off all my debt a few years ago, and my credit score became "indeterminable." Then I bought a house with a mortgage (manual underwriting), and my FICO score came back higher than before.
I cut up my credit cards (Dave calls it “plastic surgery) when I lost a large part of my income and found myself unable to pay my monthly balances. When I maxed out my cards and started getting collection calls from the card companies, I knew it was time to own up to my mistake of having them in the first place. I’m still in the process of paying off the last one-hopefully within 12 months. It will be a burden lifted off my shoulders!
Congrats
You got this! Keep going!
Don't stop!!! They don't care what's in your wallet they only care what's in theirs...
People dont spend $100k so they can make $1k. They spend $100k that they were going to spend anyways in such a way that they get $1k back rather than getting nothing back or paying interest. They are smart with credit cards.
However if someone wanted to stop/ pause on the vacations, they're still gonna be pressured by the airline to keep spending bc at the end of the day...... They're not on ur side💀
@@demarcheers airlines don't pressure people to book trips. They do send out marketing ads to get you to book them, but it doesn't matter if you have a credit or not, you always end up on their email lists or you see ads on website and social media
@@raiden031i see no difference
Saying you’ll never be a millionaire because you keep and pay off credit cards is a bit of a stretch Dave 🙄
Yeah, when he makes statements like that or buy a rental property with cash only and don’t get a loan for it, it just shows that his advice is only good for getting out of debt and nothing else from him financially is useful
He's got like 20 credit cards. At a certain point, that translates to a spending problem, even if pay off the cards every month.
No, you will never be a millionaire because you refuse to go on the rice and bean diet and you won't deliver pizzas in your spare time... This is what's keeping you broke!
It's not a stretch, it's a lie. There are nearly 25 million millionaires in the US. It's not a stretch to say that there are millions of millionaires that have and use credit cards and pay them off every month. This is an area where Dave obscures the truth. I remember reading (maybe in the Millionaire Next Door?) that most millionaires DO use credit cards, but they don't carry balances. I guarantee Dave's own Millionaire study confirmed it, but he would never admit it.
I agree. It's not one size fits all. I'm debt-free but keep a small amount on 3 cards to keep my credit score above 800. Dave Ramsey doesn't need a good credit score because he's Dave Ramsey.
Closing all credit cards is a good idea, and that will definitely keep you debt free. And as long as nothing goes wrong you will be just fine.
Because life always goes according to plan.
That's what an emergency fund is for.
Eliminating debt allows you to save net positive cash flow so you don't need credit cards for emergencies.
Yes, in an ideal world, you 100% do not need credit cards. But things can go sideways in so many ways. I would rather have a backup way to function. I mean I guess once you have built up a rather large savings you can get rid of the cards. But to close the account seems silly. If you don't have the willpower not to use them, then you can just go open it again and then use it.
The world runs on debt, I agree it shouldn't, but it does.
It sounds like you can't find an excuse fast enough. Just stop buying crap you don't need and build up an emergency fund
@@BigPapa657It depends when the emergency arises. Maybe you haven't saved enough yet when the emergency hits.
People have 20 credit cards? The most I've ever had is 2, and it's been just 1 for decades now. How do they keep track of all that?
That’s what I’m wondering. I purposely have a small wallet to only fit what needs to be in there 😂 no room for 20 cards
I bet they are stacking and collecting card points.
Well aren’t you a special guy
They're on the Dave Ramsey plan? LMAO. doing exactly the opposite of what he advocates (being debt free with emergency fund).
I’ve got 7. Each one has 5% or so back in specific categories to stack points. It’s actually really easy to manage and I make a free ~$2000 yearly from them
I was in the debt trap most of my life and once I started my gazelle payoff cycle I actually got the 850 score. Once I paid off my mortgage my score dropped 40 points (immediately). I continue loosing points every month being debt free. It's oddly satisfying to see this happen. Thanks for all you do Dave!
A fun game when Dave goes on his FICO rant is count all the strawman arguments he makes.
Very hard to buy a house with cash these days .
I just did...
@@dmarshall5148 He said "very hard", not "impossible." Good for you /s
If you have 10-20% down and a couple of tax returns, you will have no hardship getting a house without a score.
@@Nrustica What's your interest rate going to be though?
Just be a multimillionaire like Dave and it's easy.
Plenty of millionaires own credit cards. Plenty of broke people don’t have credit cards. A guy at my work only has a debit card, broke as a joke and lives in a hotel room.
Why would a millionaire have a CC? They pay cash. Stroke a check...done
@@alinatamashevich3354 most people in today’s society haven’t written a check in years. Say your cell phone, it’s a bill no matter, set up auto pay and it’s usually cheaper and it comes off your credit card that you pay off monthly.
Perks. Airport lounges. Concierge services on really high end ones. Look up Amex Centurion card.
I can assure you that hundreds of thousands, if not more, NW millionaires in the US have a CC. Despite what Ramsey’s “airtight” study says.
@@alinatamashevich3354because not all millionaires keep a lot of their wealth in cash because that would be stupid due to opportunity cost and Inflation
@@alinatamashevich3354Because it is simply a standard method of payment these days. And people who are good with money don’t have to be afraid of using one. They just keep them on autopay. It’s same as cash, plus the benefit of rewards if your card has that.
Need a credit score to get good insurance rates. So you do need a good score. Insurance companies should not be able to use credit scores.
From $37K to $45K that's the minimum range of profit return every week I thinks it's not a bad one for me, now I have enough to pay bills and take care of my family.
Some times last week I tried trading all alone but ended up loosing $3K 😢
Please how do I go about it
I'm still a newbie on investment trading and how can I make profits.
All thanks to Alex Robert
He is a licensed broker and a FINRA AGENT here in the States.
Yes!!! That's exactly his name (Alex Robert) so many people have recommended highly about him and am I just starting with him from Brisbane Australia 🇦🇺
I only had one card the past 20 years. I channel my inner Dave for the most part, the card is hardly used for many stretches.
It comes handy though in emergencies. Trips to the hospital, spike in school expenses, etc.
Have you ever seen your FICO over 815?That’s exceptional credit! Feels way better than being debt free.
Having a credit score feels awful.
It feels good..no debt..high score.. very low insurance
It’s true. You need a credit score to get a mortgage, but once you get your first mortgage you don’t need it anymore.
Ken is like…Did I close the Garage Door b4 I left for work Today
Yes!
And, did I forget my extra breakfast burrito in the car?
Lmao 😂
My husbands thoughts all the time “did I…?”
And, thinking...
"Oh crap.. I can't confess that I purchased this shirt with my LLBean credit card"
😂😂
My wife and I do quite well for ourselves and keep no balances on credit cards. Not having a credit score COSTS you money. Interest rates are higher on a mortgage, rent could be higher, utility bills can be different, and even car and life insurance payments will be higher without a good FICO score. I know people may spend more with credit cards if they’re not paying them off (which they need to do) but the difference between 4% with a FICO and 6% via manual underwriting on a house is probably more than the difference in spending.
We spend more when using a card, especially stuff we don't need.
The point is he wants you to buy a house cash ! So it really doesn’t matter the interest rate
There are insurance companies, and utility companies that don't require a credit score for service. If they do require it, I'd say turn the other way regardless.
Dave had an episode where he said that you can get the same interest rate with manual underwriting as you can with a FICO score. He sounded convincing and it might be true in a very small number of cases, but in general, it's not true at all.
@@atrain132 I've never heard of a utility company that required a credit score for service. However, some do require a deposit when your score is low or unavailable. Insurance companies don't usually require a score, either, but they do give you a better rate if you have a high score.
Look, most people live in the real world and need credit at some point. Your wife is right. Keep 2 cards, chop the rest up. Do not close the accounts.
America is not part of the real world. The real world considers the concept of credit absurd and laughs at countries like America because of it.
I've never had a credit card and I still managed to buy an apartment. People don't need credit cards.
@@ewastachowska6848 You bought an apartment? Like cash? I guess that's an option. I don't know why you act so dumb about credit score.
@@amireallythatgrumpy6508doesn’t China literally have a social score and India have a caste system?
@@TonyCox1351 And what does that have to do with credit. Oh right, NOTHING!
Yeah sorry, it’s much easier in life if you just learn to be responsible with your score and pay off every month. I
Get where Dave is coming from, but bottom line is it’s harder without a good credit score. 🤷🏻♂️, change your habits
In today's installment of "How to be common"
My score is about what Dave's is, life is pretty good...
Living in the USA is irresponsible.
Yep this is one area I've never agreed with Dave on. Having a credit card, but never carrying a balance just makes life easier
@@dmarshall5148 that’s fine and it’s easier if you’re a millionaire, but things take longer and are less obtainable
How do you book a hotel room with no credit card? It’s the first thing they ask for 3:44
Before you trash your credit score you better have a house and car everything paid off lol
This show also has its fair share of sheep and cult-like followers. With that said, you can build wealth and manage a reasonable amount of debt. It's not an either or proposition.
True, but debt can weight a lot of people down and you introduce more risk.
@@LittleMopeHeadI’ve worked for credit card companies. They make their money off of people being irresponsible. If you’re responsible card holder there are a lot of savings such as, flight miles, concierge services, reward points etc.
The irony is the USA itself is full of sheep and cult-like followers. The USA itself is the ultimate cult.
Dave has a point, but unless I’m wealthy, I would keep 1-3 credit cards for emergencies . They are a beneficial for making big purchases, especially for rentals and traveling. However, I don’t ever keep a balance. Pay them off before the due date. Self-discipline.
Credit companies love you. The word credit and emergency should NEVER be in the same context if you are using them responsibly.
Very few people end up in the credit spiral on purpose. They use credit cards like you have claimed, and use them to fund an emergency they can't afford day of with the idea they will pay it off before it's due, then come the due date they did not make it for whatever reason, and the cycle begins.
If you are making purchases on credit that you can not immediately pay for with cash, you are their inevitable victim.
Nobody but Dave thinks that points will make you rich. Big strawman.
On my utility bill I get a 2% discount--that's the 2% cash back.
On gas & Sams Club and Costco I get a 3.5% discount. That's the cash back.
On Amazon purchases I get 5% discount. That's the cash back.
Or does Dave think that it is bad to get a discount on things you are going to buy anyway?
He uses the tired argument that the entire US population has no will power, and "you will spend more when its bought on credit".
I have no doubt that he is correct and MANY people are stupid enough to overspend. But for the rest of us who have advanced college degrees, we understand economics, and will spend the same regardless if it credit, debit, cash, points, paypal, or fur pelts.
You're 100% right but the majority of people have a hard time being responsible with credit cards
You're missing the point. Most people carry a balance. That means they could be hitting 30% interest rates. How does 2% cash back compare against 30% interest? There is so little to gain and so much to lose for most people. Also, credit cards are just not needed. You don't need a credit score, and you don't need credit cards for emergencies. Cut them up!
@@CHaSeDghostskill issue
There is likelihood that you will buy something more than you needed just because of the discount.
How did he have 20 credit cards in the first place?
Im thinking it was 20 between him and his wife. That’s still a lot though.
It’s not hard at all. I have 9.
😂😂
I will NEVER be gullible enough to let Ramsey convince me to kill my credit score.
We know
Enjoy being broke then
And yet you are gullible enough to believe in credit scores. You probably think the USA is the greatest country in the world. You cannot get more gullible than that!
@@amireallythatgrumpy6508 Credit scores are the standard in the financial world today. Even your car and home insurer check them, and if they're bad, you're assigned a higher risk class and pay a higher rate. So yeah, who is the gullible one? Oh and about the USA -If you're not a patriot (something about your doubt that the USA is the greatest country comment) .... then shame on you. Find your greatest country and let us know how wonderful it is.
@@amireallythatgrumpy6508back when interest rates for mortgages were 2.5% a solid credit score was worth it's weight in gold. That still may be true again in the future.
Just pay your credit card off at the end of the month. Don’t be a moron, collect hotel/airline/whatever points along the way. I’ve literally paid for 2 separate 2 week international vacations using CC points.
No such thing as a free lunch
I like how the husband always blames the wife for things they want to do. 😂
Huh I always feel like it’s the other way around 😂
Both true. It's like "my spouse doesn't agree with me what should I do?...call a show to shame them"
Works everytime. 😂
He’s very young. I wouldn’t judge him to harshly.
this is a person thing, not a gender.
How would we rent a car during vacations? Car rental spots don't take bank cards
There is literally no valid reason to rent a car. Ever.
When I rented a car. I tried using my debit and they wanted a proof of residency and payment. So like an electric bill or something. I didn’t have that on me. so they asked for a credit card and….that was it, swipe and go.
@@amireallythatgrumpy6508 Huh? So when I fly to a city I do not live in for a week, how am I supposed to get around?
@@ElCangri137 Public transport.
@amireallythatgrumpy6508 that's a lowsy option. Public transportation doesn't go by every street. Some cities have no trains and minimal bus routes. Plus Uber would be ultra expensive and you miss out on the cashback options in credit cards which in turn gives you a discount of everything you buy.
I'm celebrating a $30k stock portfolio today. started this journey with 6k. I have invested on time and also with the right terms now I have time for my family and the life ahead of me
.....
I'm new to this and have heard that now is an excellent time to buy. However, I currently have cash sitting in my bank account that I would really like to put to good use because inflation is at an all-time high. Who is this coach that you mention, and do you mind if I look her up?
mrs Christen wilburn was my hope during the 'bear summer' last year. I did so many mistakes but also learned so much from it, and of course from Gladdis Harriet...
Please who is Christen wilburn?
Please how do I contact him?
she often interacts on Telegrams
.....
Dave I appreciate your help teaching people like me to be debt free. I have listened and have saved $40,000 since 2020. Debt free no mortgage. Low incomed. You are an excellent teacher, motivator, and mentor to all who will listen to instructions and follow them.
I would want to know if they paylid their rent, electrical and other bills on time.
In trucking much of the freight I hauled and my insurance coverage required maintaining a good credit score. When I retired from trucking I immediately closed my credit card accounts. Did not even think about it and now over the last month I have 3 of my kids getting credit cards and taking out Helocs. They know exactly how my wife and I are managing our money. I feel a bit like we’ve lost the battle now.
Dave said that he pulls ppls credit report before renting to them. I know, the white nights will come and defend him. No need. He should! Just like you should have a good credit score. I have one with no debt
A sweet nickname that he can use for his wife is "Little Debty"
No one talks about how to live after you payoff debt. You still must maintain debt free living, which is a life style change. It involves a plan to cut spending, living within your budget, paying your bills ontime, managing vacations, buying food and list goes on. Its a very disciplined life and you must change your thought and relationship with money. Not so easy to do.
I escaped the FICO cult 15 years ago; best move I've ever made. I'm cash and carry
Credit cards are meant for one thing - building credit. Get a credit card, and only put money that you have on it for the sake of building credit. I want a good credit score (currently at 823) to save thousands on my mortgage when I buy my first house.
Wants a good credit score (currently at 823). Yeah, that's not good. 😂
@@BREEZYM6015 lol doing my best until the day comes when I’m ready stop renting
@@BREEZYM6015??? 670-739 is considered good. Above 800 is considered excellent.
How do you book a hotel room with no credit card? It’s the first thing they ask for
I know what you mean. Some hotels are fine with debit cards, but most want credit. It's less hassle for them, the money settlement is instant and the fraud protection is better.
Ken!!!!!!!!!!!!!!!! I'm really proud of you for your weight loss. You look younger.
People misunderstand credit score, you can use that to get a personal loan and buy a land build a house and sell the property and earn for profit. Or buy a car and use the debt to lessen your taxes if you have business.
My credit score is well above 800. Thank you. I’m soooo proud of it. I can rent, or get a mortgage, or get a job, or even open a bank account. Things you can’t do without a credit score.
I'm sorry you're dumb enough to live in country that has credit scores.
LOL I can do all those same thing with no score.
Yeah, agreed. I have done half those things without a credit score.
I have a high score and no debt. Dave is half right, it gamifies credit but you do need a credit score in scenarios like renting a house where background checks are needed and mortgages. It’s ok for Dave to have no score as he is a multi millionaire. The caller should cancel all the cards and maybe keep two and keep debt free
Wrong, debt is debt, pay cash
Keep two cards and be debt free? That’s an oxymoron
@@alinatamashevich3354 so what you’re saying is instead of signing a year lease on an apartment, which typically requires a credit score, someone should pay cash for the entire year. Great plan. I’m sure most apartment renters have $20,000 lying around to pay for a yearly apartment rental.
@@jacobschwartz6379: Not if you pay the balance in full each month.
I have a couple of credit cards and pay them off daily, zero debt. Debit cards have limited protection from fraud which is why I use them over cash. If there is a dispute or fraud on cc, the card provider is legally required to chase that up and pay you back. With a debit card it can take longer.
I am a multi Millionaire living in Canada. I agree with most of what is being said on this show except for credit cards. Credit cards are a great way to borrow money free for a month and pay the bill once a month, as long as you have a credit card with no annual fee and don't have a rediculous amount of them. All you need is one American Express, one Visa and one MasterCard. One more thing I want to add is that there is actually a store in one of the malls here in Toronto, Ontario, Canada that takes credit cards only. They have a sign at the entrance of the store stating credit cards only. NO CASH.
You would be a 10X multi millionaire if you didnt give 50% of your income to corrupt Canada! lol
You got to get out of that socialist frozen tundra!
Exactly. My salary is coming at 1st (tomorrow) and I'm gonna put that to interest with my other money. Bills, stuff that are bought next month will be paid at 1st July. In Turkey, we have %50 interest rate at the moment. It's insane because of inflation (but it stopped those months).
Not to mention sometimes there are things you can buy with %0 interest rate in 6-8 months instead of paying at once.
You agree with most of what he says? Only about 20% of what he says is good advice lol
And that works great for some people. However, all the studies have proven that, on average, people spend substantially MORE when they use a more convenient means of payment, such as the credit card.
I just opened a money market account yesterday. I literally had the option of getting a credit card with a 0% introductory rate for a year and FUND that money market account on 0% credit. Maybe there was some fine print somewhere that would have not permitted that to happen, but it certainly appeared that I could. I would not get stuck in that trap, and you would probably not, either. But it sure sounds like a great opportunity for someone to get baptized with fire.
If you don't have spending problems, then go for it.
@@supernotnatural I recently helped a woman buy a new car. She had the money to just write out a check and be done with it, but they were offering 0% financing for something like 84 months. With what kind of interest she can get on a CD or money market account right now, I told her to go with the financing route.... because.... seriously. Why not?
If nobody fell victim to the borrowing, the credit companies would be out of business and so would Dave Ramsey. But people do fall into the trap, thus Dave makes a killing doing what he is doing.
I am single income living on a clerk salary in California. After I paid off my house, I started saving money into a HYSA high savings account. After a few years, I was pleasantly shocked to see my statement showing that the bank has been paying me $1000 every monthly interest on my high yield savings. Today, I can save 100% of my income and use the bank's payout monthly. I did not realize how fast and how easy it is to save money when you have no debt and no mortgage. People wake up!! Dave is correct. You guys in debt are paying me interest on your credit cards. If you are struggling, you need to understand this concept.
You must have well over $200,000 in that account to be receiving S1000 a month in interest
Very impactful . Thank you so much
July to October 2024, Discover Card is 5% cash back at Walmart and Grocery stores.
This thing of not needing a credit score is a fallacy. Dave can say that rap all he wants but I'm pretty sure he has a good credit score and makes sure it stays that way. Like it or not in this country you need a good credit score. A year ago when my home insurance went up by 600%, for no reason, I had shop around for a new policy elsewhere. Guess, all the companies gave importance to credit score. Once I settle on the best quote, my actual new insurance premium was way lower than I was quoted after they ran my credit and found out it was very good. If you rent, they look at your credit and might deny you if you have bad credit. The list of why good credit is important goes on and on. I don't agree with how this works but it's the reality and preaching to regular people otherwise is sort of irresponsible. I get it, if you're a multi-millionare and stuff like renting a home or high insurance premiums aren't more than a slight inconvenience, but for 99% of the people this won't cut it.
They had a segment just yesterday in which the couple couldn't find an apartment in MI because their credit score was in the toilet and were so desperate they were living in an RV to purchase. They just ranted on at her about making dumb decisions.
All good except D Ramsey having a credit score. He doesn't. Of course it doesn't matter for him, he is high net worth.
Insurance companies don’t care about it your credit score. As long as the premiums get paid.
@@daltonowen4907 Many insurance companies use credit score to determine risk, having a good credit score helps you get a better price because you are perceived as less risky.
@@JustinCase780 They had a bad credit score though. Dave is saying people should aim to have NO credit score -- not bad, not good, just none at all. Having no credit score means you're debt free and if there were any bad marks on your credit history, they're too old to matter to the credit reporting agencies.
I have a coworker who wants to get a credit card in his Two year old son's name so that his son will "have a good credit score when he turns 18". Seems asinine to me.
“Cashback bonus” isn’t a path to wealth, I’ve never heard anyone say that. But if I’m already spending money (gotta buy groceries, gas, etc.), might as well make a bit back. Of course, you still can’t spend money you don’t got!
I agree with this. I put my fixed bills on it (gotta pay them anyway) so why not get the cash back while I’m at it
Bottom line for people that use credit cards.
You may not be paying interest but the single mom that can’t afford her bills without that credit card is paying YOUR 1% cash back. If you can live knowing that then that’s on you.
@@daltonowen4907 The single mom who is carrying a balance is not my problem and not my fault. She is paying interest regardless of whether I have a credit card or not.
@@daltonowen4907bro this logic is fucking stupid. Do you own any apple or Nike products? Cuz if so that means you support child labor!!! If you can live with that that’s on you 🤗
You can have a good credit score and not have debt. There's nothing wrong with having it as a safety net as a last resort.
Edit: as a last resort after the emergency fund
Why would you need it as a safety net?
Yep!!
If you’re financially successful your safety net is an emergency fund - you don’t need it…. If you are debt free and relying on credit cards as a safety net you’re failing somewhere financially
@@USMC6976 Your emergency fund might not fully cover an emergency that comes up and a loan is your only option.
I can't imagine letting the pride of not having a credit score make you pay more in interest in situations like that.
@@alexlarsen372 please see my other comment on here about an emergency fund not being enough. It's easy to think that your emergency fund has plenty of money in there...until it doesn't
Dave straight up telling this guy he won't be able to retire because he has credit cards with $0 balances is the most toxic thing he could possibly say. He brainwashes people to believe even owning a credit card means your finances are ruined. This whole clip was him basically just spouting off lies.
Over 90 percent of millionaires have credit cards and 70% have two or more, saying you can't build wealth and use credit cards is statistically wrong. No they did not get wealthy off of points but they used it as part of their financial toolbox.
So I do have a question, know Dave Ramsey has a bunch of rental properties that he stated He's renting out to people.Does he not do a credit pull?
No, he does a proper background check. He's smart enough to weigh the facts. He does not base decisions on one number or rely on a computer to tell him what to do, unlike 99% of American landlords
Lol Dave. More than 90% of millionaires have a credit card. Complete BS to say "you won't be a millionaire if you have credit cards."
Where do you get this information?
@@douglasvamateurradioandmorefrom common sense
And 90% of millionaires would still be rich without the useless credit card, but go get you 2% cash back wagie....
@@MrJimmy3459 For sure! Whether it makes a meaningful impact is at least a debatable topic. But Dave telling someone they won't be a millionaire if they have credit cards is just ignorant.
@@douglasvamateurradioandmore Google it. Motley fool, money guy. Hell I found a website that said 43% of millionaires have a sears card (likely an old stat). But that's just one specific card
I have 3 credit cards , thats enough . you need a credit card to rent a car , get a hotel room or BNB , buy airline tickets , etc... I'll keep them for just in case , but the balances are paid off the end of the month or quickly .
We use 1 credit card for all purchases each month, pay it off every month. It is all about control, be frugal, watch your budget, we are everyday millionaires but did not earn loads of money, helped our kids out with first cars, college and down payments on their houses, now they have no college debt and have their own homes that they are paying off. Life is good for all of us.
A credit score have nothing to do with having debt.
Dave always loves to use strawman arguments.
That's not at all true. Your FICO score is based on how much debt you have had and continue to have. When you get control of your spending and stop borrowing your FICO score goes down. Mine did, but it doesn't matter because we no longer borrow money.
I guess I'm technically in debt each month, but I autopay in full, pay no interest and hover around a 805 score. If you don't spend money you don't have and using a card as a payment method doesn't influence your spending, I don't see the problem.
Yes, it does. That's how you get a good credit score. If your debt goes away, so does your credit score.
@@joejohn.People using a credit card, on average, spend 17% more. That's 17% they could have invested.
@@jimroscovius Still does not make you go into debt.
While I don’t like debt. Every apartment complex looks at credit score. I use a secured credit card. I borrow from my self.
Only shithole apartment complexes. (Hint: An apartment complex in a shithole country is included).
Idc w
hat he says majority of the people need a credit score for buying a house
Not true. Keep listening to Dave. You'll get it eventually.
Manual underwriting. This isn't hard. Poverty mindset
And also just to literally rent a decent apt, condo, townhouse or house. So to have a decent place to live for those of us not buying a house in cash anytime soon or in this lifetime, we need a good credit score. We don't need debt though. Absolutely not.
@@TS6815"manual underwriting" not a great deal, unless you are the mortgage broker.
Just save up cash, bruh. It'll take decades and you'll be competing with buyers who have access to leverage, but hey, at least you'll have avoided debt.
Unless he can pay for a house in cash, he will need a great FICO score! Once he has that, then he can stop worrying about a FICO score!!
Credit scores only exist in backward hellholes like the USA
Someone should ask Dave if he believes in coupons.
Because I get 2% back on every purchase I make and pay my cards off in full each month.
That’s all it is to me - a 2% coupon for everything I buy.
Dave will never admit that CCs are convenient and offer benefits for people who have self control
You know what the banks do? The oldest card you have, the one that gives you the good FICO score.. well they know you are going to keep it open to keep a good score and then they change the terms and add annual fee and they increase the fee and so on and so forth. It’s not a lot, 50 60 bucks but they know you will just accept it.
Also, all these cards open, some of them are bound the get hacked and then you have unnecessary problems.
But expecting to have no score.. you can forget about that. My parents haven’t had debt or a cc in 15 years and they still have a score of 710.
Except, that's not true... at all. By that logic, one person has had a card for 20 years and another person has the same card for only 1 year, the bank changes the terms and adds an annual fee to the person that had the card for 20 years but not to the person that had the card for 1 year? Never happened.
You know what credit haters do? They make up random shit that in no way actually happens in reality to justify hating credit.
I have a serious question for Dave. What if you are worth 1.7 million. Most is in real estate. I use my Amex to buy what I need anyway and earn miles and status on Delta to save money and travel nicely. I don't pay interest. Amex will beg me to keep a balance by giving me 0 apr or 2.9 for 6 months. I just got a loan to make a move from TCI to Asheville and it will be paid off in three years. Once this house is complete it will take me to 1.9-2.0 million in worth and a 300k "debit" for a year.. which not really because the TCI house is being rented out. Dave how is this not smart? Honest question
My wife will not let me close accounts, she lives by that credit score.
But how do you get a loan(mortgage) if your FICO score is low(below 400)?
You don't. You need no score at all or a high one. Preferably no score at all.
I personally would never take Dave’s financial advice..😂
A credit score is useful to buy your first house, even though these guys will say you can manual under ride.
Most banks won't do it and even if they do you have to have a ton down and be in the same stable job for 3 years that makes so much the monthly payment is nothing compared to income.
When you're buying your first house in a tough housing market in your 20s, meeting all the requirements is nearly impossible and there's less resistance having credit in the first place
Same guy will tell you to buy a house for 600k because “it’s the best time to buy”.
Try buying a house on a mortgage with no credit history or score.
Best time to buy is when you can afford it.
And you can absolutely manually underwrite a home loan with zero credit history. Happens every day. Try again broke boy.
We did it, and it was before we knew much about Dave Ramsey. It's called manual underwriting, and we had to submit statements showing a year of two different monthly payments (we used insurance and power) and two years of rent had to be vouched for. Certainly more hassle, but in the end, it came out the same.
It’s called manual underwriting. The underwriter manually looks at your loan documentation instead of punching the numbers into it the automated by FNMA FHLMC to see if you qualify.
I bought a house on a mortgage with no credit history at all. It was an ordeal until I discovered manual underwriting a.k.a. "alternative credit."
In any case, if I did it again, I would get that credit score at 18, get my mortgage, and throw it all away afterwards.
My mortgage is all paid up now, I have the same one credit card that I had for over a decade and never borrowed money for anything else in my life (other than when I forgot my wallet at home or didn't have the cash ON HAND to pay someone). My credit score has actually GONE DOWN. It sure sounds like it is a rigged system to me.
And quite honestly, with how things are going, if you do not buy a house now, the situation is going to be even worse 5-10 years from now. The best time to buy of the last 21 years was about 5 years ago. The only way the situation is going to be made better is for more houses to be built or you take it upon yourself to build your own. But there does not seem to be any signs of that happening.
If anything, having 15-20 credit lines open is *hurting* his credit score.
I disagree with this premise you get better rates I understand it’s debt but at the end of the day you have to get a loan for a house. It’s unavoidable and doing it as soon as possible and paying it off as soon as possible will help you big time.
How do you have 20 credit cards? I have one and that’s good enough for me
@PepeToTheMooon Then when your wallet gets pickpocketed in the store and you need to buy gas, what then?
@@Fred2-123 I have to call and cancel one card, which is reasonable. Not call and cancel for 20 cards…
@@PepeToTheMooon You don't carry all 20 with you. You carry 2 and leave the rest in your safe at home. You use those for online payments & online shopping.
And when you travel, you carry 2 cards and your wife carries 2 *different* cards.
@@Fred2-123 but why would I need 20 different cards? Cmon man. THINk before typing.
@@Fred2-123silly analogy. If you get pickpocketed, there’s still no need for 19 more credit cards sitting at home as a backup.
I have a good score. Have credit card. And have no debt.
I bet you pat yourself on the back too 😂
Me to I’m debt free have over 800 credit score
Wow, you are special
I’m 80 years old I do have a credit card one and I do use it but I pay it off every month I pay no credit I pay my Verizon bill in my credit thank u gor you he I’m put and have a Blessed day 🎚️
Sorry for my spelling I’ have no interest at all i on my card I get reward cash earrings on my card each time I use it I don’t need debt I’m a breast cancer surviour 11/2024 no chemo just 16 radation God is Good hope u have a Blessed day 🙏🎚️😊
We paid our last debt off (house) 13 years ago. Then a credit card I didn’t use much was closed (they just sent me a letter and said bye). My score dropped from 830 to 780. It’s a measure of how much you like debt
I have a capital one credit card..I only use it to rent a car because of my business as a longhaul truck driver..when my truck goes in the shop I might need to rent a car. I also use my card to purchase airline tickets..
A good credit score is important for a lot of things. You don’t need a lot of cards but you need at least two. With two you can do balance transfers when necessary. Having zero debt is a luxury most of us don’t have. When the A/C goes out and you don’t have 12-15 grand to replace or repair the options are simple. Borrow or suffer. A good score means you can borrow at decent rates. A person’s credit score tells you a lot about their behavior, habit's and financial circumstances.
I cancelled my Amex Gold card with no hesitation or regret. I don't care about my FICO and it's still above 800. I don't even use it.
If you didn't care you wouldn't know what your score is
@@perotal It's hard not to know these days. My credit score is listed on my bank account so I see it whenever I log in to make sure my paycheck was received.
Dumb
@@perotalexactly 😂
@@perotal Every time I log into my financial accounts my FICO is in my face. You people are salty as hell.
A person can have a credit card and never use it. His credit score will be perfect and there would be no debt. To rent a car, sometimes you need a credit card, especially in small regional airports.
There is literally no valid reason to rent a car. Renting a car is asinine behaviour.
If I have a credit card that's capped at $3000 or if I have one with a $10000 limit, if I borrow $2000 against each, it will hurt my score more borrowing against the $3000 card. That is jacked up.
I have 2cc, there is ZERO balance on them. You can own cc, you don’t need to use them.
Who the heck have 20??!?!!!?!?!?
Why? Pay cash.
@@alinatamashevich3354cause benefits (cash back) on utilities and items I have to buy anyways, better rates to buy a house and better prices on my insurance? Why not? As long as you’re responsible with them, there shouldn’t be any risk on having one.
I have 38
@@JimKirk1776 I have a 38 special +P
I have around 20. But i have no debt whatsoever. I love dave got me out of debt
Having 20 credit cards is insanity on steroids
Even if you care about fico score, you dont need 20 credit cards, you just need to raise your credit limit on one or two so that your ratio of debt to credit limit is low
If you’re not rich, you need a credit score. Dave isn’t living in the reality of the 99%.
The reality of the 99% is credit scores don't even exist where they live. Credit score only exist in backwards hellholes like the US.
I learned alot. I have 3 credit cards all in good standing i owe $2000 thats all. Thats alot of money for me i'm going to pay them off , it really hit me Why am i giving my money away to banks. I learned my lesson.
You need a credit card for renting a car and booking a hotel online to secure the lower rate.
There is literally no excuse or reason to rent a car. Renting a car is asinine behaviour.
Two paid off houses, three paid for cash cars.
I don’t need a credit score!
What’s your job occupation
@@Hoodpop3 Software developer.
@@DMS20231 is that the same as a software engineer
Umm Dave, there’s lots of millionaires even billionaires who have credit cards 😂 granted, having them didn’t make them wealthy, but it’s how you leverage the use of it. Dave may not use them, but to imply that there’s dozen of wealthy people don’t have them is looney.
Why do you have 15-20 credit cards? For those of us who don’t have a hundred million in the bank, need a credit score (indication of debt management) to purchase a home
You don’t need credit score to purchase a home. Manual underwriting is possible for those with no credit score
People that actually know how to use credit cards have that many because it lowers your utilization and you get more cash back by having say an Amazon card for Amazon purchases than any other card.
@@hectorguardado6400 do u get a better mortgage rate like this?
No one every said that reward in going to make you wealthy. That is a strawman argument.
Bingo. Ramsey makes this "dumb" argument nearly every time credit cards are mentioned.
Yet 48% of people that have credit cards carry a balance and pay interest like dummies.
@@yoddy0i would think its higher than that
You may not be paying interest but the single mom that can’t afford her bills without that credit card is paying YOUR 1% cash back. If you can live knowing that then that’s on you.
@@daltonowen4907her problem. Not his
OK, don’t get a FICO score, also good luck trying to get a car, rent a place, a mortgage, or any other kind of loan. Dave will wax poetic about getting a manually underwritten loan. Yeah let me know how that turns out for you lol it’s like yeti, everybody talks about it, but no one‘s ever seen it. The call tomorrow somebody from the staff is going to ask Caller what their credit score is and then tell them to go down to the credit union. I agree with about 85% of things on this show but let’s get real about guys
Thank You For Changing My Life Mr Ramsey im saying this as a low income folk
Thomas laughing at Dave's response tells you he's terrified of his wife 😂😂😂
Not a laughing matter though. Way too many men are living in dread of their wives and unable to stop them from wrecking their futures.
If paying for everything via a credit card (that you would be buying anyway without needing to borrow) at no cost can get you 1000 dollars, it's hardly stupid. It's just that most people can't.