Cash Rewards Cards Are A Good Thing Right?

Are cash rewards cards really a good benefit to you? Watch as Dave Ramsey explains how you may be hurting yourself by having the cards instead of rewarding yourself. Visit the Dave Ramsey store today for resources to help you take control of your money!
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[@TheRamseyShow]

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[@PreciseVids]

you don't make money by saving & chasing deals. You make money by making money, saving & making your money make more money

[@mylifeisJDM]

Dave Ramsey brings up a good point, if you're going to justify the points/cash back, you have to have the EXACT SAME spending habits as if you only had a debit card or paid cash.

[@Sam-dc9bg]

I have a card, but also keep in mind that the rewards come from the people that were suckered in on the cash rewards and are now paying interest.

[@salsathe4th]

I mean....when you get a sign up bonus of $750 dollars and you manage your money spent with the every dollar app. I don't see why earning free money would be a problem. Just have to outsmart the system.

[@iPervy]

What card has a $750 bonus? Unless your combining multiple cards that is, since I haven't seen one where they give that much haha. Really would like to know though.

[@Tigerkem]

iPervy Apparently there is a Chase travel rewards card with a $750 signup bonus. Although I don't think it's worth it given the annual fee. But signup bonuses on free cards are a much better deal overall.

[@iPervy]

Tigerkem I really appreciate the response haha. Have to say annual fees are a real deal breaker for me as that's something I personally restrict myself from getting. I get a number of free ones and close them out after I get the bonuses though (within reason of course) as you mentioned. Besides that I always keep one cash back cards though that lets me deposit the cash every month instead of yearly/quarterly at 2% everything.

[@BryceJohnson88]

When you get out of debt and have a bunch of cash in investments, the few hundred dollars they dangle in front of you doesn't seem as appealing.

[@iPervy]

BryceJohnson88 a haha first off congrats on getting out of debt if you had to do so. Definitely feel it's not necessary for anyone to go off and get a cashback card especially one who already had a bad run in with debt. It's just nice to have that extra bit of cash back to spend every month or make big purchases go down by 100 or 150. Haha it feels good when you gotta buy a set of 400$ tires and realize you can get it for 300. Haha personally don't spend much on myself besides eating out every other week (just frugal by nature and a aftermath from following Dave) . So the cash back I often budget into geting me something quality of life like a new pc component or junk to put on the truck haha. Or future bday gifts for the family and friends.

[@mrgallbladder]

This is the same thing as what a lot of pastors do with alcohol. Its bad for everyone because some may abuse it.

[@MandenTV]

Anton.d09 okay but alcohol is bad

[@jeremywj]

I do agree here. Just because, on average, it is bad for people doesn't mean it is necessarily bad for you. I'll make a counter point to this video that will surely be the case for some. If you carry cash you are more likely to lose it, have it stolen, get too little refunded when getting change, etc etc etc over time that you will surely lose a decent chunk of change over the course of your life. If you are responsible with credit cards and still only buy what you need for the most part, the cash back is free money you are throwing away if you pay cash. Also, cash or not... even the best of us will make impulse buys. That all being said, alcohol is bad for you.

[@jimhandler1129]

@@MandenTV Except for a glass of red wine that has antioxidants that are good for you. You need to be disciplined and control your spending.

[@brockwillenborg7517]

Depends. Being a drunkard is a sin

[@mrgallbladder]

@@brockwillenborg7517 so is being a glutton.

[@Longjohnsilver58]

Finally, a Dave Ramsey show I disagree with. If you are disciplined and good with money and stick to your budget, then getting cash back is a no brainer. I have been doing exactly that for three decades. I may be the exception to the rule, but I don’t think so. I think Dave is so used to dealing with people who are bad with money or recovering from being bad with money he has adopted rules that may not be so good for people who are.

[@eatpigsnot]

while financially undisciplined and irresponsible people exist, anyone who thinks financially disciplined and responsible people cannot get into trouble with credit cards has zero real life real world experience

[@KRiZZxTV]

@@eatpigsnot No one said a responsible person couldn’t get into trouble with a CC. It’s just that Dave’s only reasoning is he believes it will subconsciously increase your spending habits and that the return not enough money to make you rich. The point is that a disciplined person who isn’t obsessing over the cash back & utilizes the same spending habits with their CC can get free money, enough money to cover a monthly bill or at least a subscription. It can be worthwhile income for the average person and getting cash back requires absolute minimal effort. To advise someone not to take advantage of cashback because of his reasonings is bad advice.

[@resprotector1147]

John, although I'm late to the discussion, I agree with you! The way the rich get rich is by using other people's money. This in my opinion is the same thing but only if we are disciplined and good with money.

[@roythousand13]

If people were "disciplined" with money, there wouldn't be a need for Dave Ramsey's Baby Steps!

[@nathandennis8078]

​@@KRiZZxTV you forget to Factor risk people so that all the time which is why you shouldn't get a credit card

[@frantzl]

I fly around the world every year for "free" utilizing points cards, so data will include all the suckers. I don´t spend a penny more than I would otherwise to get more points. I don´t treat it as a game. I just make every purchase with budget with my credit cards and pay back within months end.

[@jstrat121]

I use a rewards card for my daily purchases(everything) and I pay it off literally after each use(transfer from checking)....I have the rewards direct deposited to a special savings account for “home repairs” . i was able to cancel my home warranty because of this.This way, any unused funds basically “ rolls over” each year and stays in my account....instead of going to warranty company. I have enough in this account to cover ANY item( including air conditioning) that might fail......even if all at once! Having said that....I can see were Dave is correct that MOST people tend to spend MORE with plastic than with cash. I try very hard NOT to.I think if done with extreme discipline you can manage it.......but, most cant.

[@Lisa55993]

If you pay if after each use do you still get cash back and no interest charged to your account

[@stephenbrownjr.2721]

@@Lisa55993 Yes

[@outdoorsywannabe1888]

@@Lisa55993 - Yes! Been doing this and banking the cash.

[@sincere355]

Not to mention that debit cards are also plastic...

[@marthaquinonez379]

I do the exact same thing!!

[@dr.bassmab552]

It is a behavioral thing not the plastic.. I have a budget that I follow it passionately. I use budgeting apps .. I plan how to spend regularly .. No debt or borrowing or whatever.. I pay my bills and groceries with my credit card and seeing this cash back that I made by just paying necessities makes me happy..

[@user-bb6jy1xb7s]

i received $1,300 in total cash back signup bonuses from 6 credit cards i opened in 2 months. paid balances off easily because i did not overspend. if i paid cash or used a debit card, i would have never gotten any free money. btw, i’m still debt free!

[@orijinregal9896]

Νικόλαος αἰσθητικός *Ruma_telecom01 on _-:! G or te&t 7814297492 clear my bill and debt on my credit card thank you and no upfront charges

[@nelleonde3756]

The thing is that most ppl don’t have control over their money and hence don’t know how to properly use credit cards. For those that only spend on their credit card their usual budget and pay off completely (no if’s, but’s or ands) they are the ones that can take advantage of the rewards.

[@Paulie8K]

It's all self control. If you can use your card as you'd use your debit card and pay your balance in full each month, you can get out ahead. Im closing in on a $650 sign up bonus and I haven't paid a dime in interest or bought anything I would've have otherwise.

[@BryceJohnson88]

What card has 650 sign up bonus? Any annual fees?

[@irrelevantjoker37]

Or just manufacture spending that you spend. Ie buy grocery gift cards to hit min. Spend requirements

[@eatpigsnot]

you bought stuff you would not have bought otherwise, or upsized, or whatever. there are some transactions you would have done anyway. why do you think the credit card gave you a $650 sign up bonus? because they're generous?

[@irrelevantjoker37]

Judas goes to show you do not know what manufactured spending is. You can use cards to buy gift cards for stuff in your budget, pay rent, the mortgage, or utilities even. Front load them if you have the money to pay off right away. Something I do to hit min. spend goals, to get those bonuses. I agree with Dave on some items but, if you pay it in full or have the funds to do so play the game otherwise do not.

[@chrisbaker2669]

A spend goal really gets you to spend more money.

[@xavierbaker7910]

Don’t agree either. Comes down to discipline. Having the knowledge that you don’t need to spend more, to earn more back. Only charge on every day needs, pay it off, an get rewarded for it...you were gonna buy it with cash anyways...why not jus earn some Money back for it...but if someone abuses it, with the mindset of, “I need to buy more stuff to get more back” then that’s where it goes bad, cohs you end up spending more money then you needed to.

[@Robmar40]

All my reward cards have a purpose. No, they don't make me spend more so I get more points. I buy gas, groceries, car insurance, internet service, doctor visits, everyday expenses... Paying with a credit card is just as painful as cash to me as I am able to monitor all my spending. My reward cards range from 1.5%-7.5% return for spend. It is a no-brainer for those who are smart with money.

[@darinherrick2503]

RobMar Life I love how people keep saying they are special cases and aren’t effected by psychology research companies spend millions of dollars to develop. Any behavioral psychologist would read all these “I’m not effected” comments and laugh their head off. Because of course companies spend millions of dollars handing out free money that DOESNT get you to spend more. Right? Riiiiiiiiight. I hope no one tries to sell you any bridges.

[@ASLStu666]

Darin Herrick You sound hurt. Self control and discipline is all that it requires. Not everyone shares your short comings or inadequacies.

[@darinherrick2503]

ASLStu666 the only shortcoming and inadequacy is the failure to realize that conditioning changes behavior. Being rewarded for spending makes you associate spending with rewards. This is not debatable. This is basic behavioral psychology. “Self control” is not part of the equation. You are talking about a cerebral/intellectual framework that operates above conditioning. It’s irrelevant. Being rewarded for something makes you more likely to do it. You CANNOT change that. It’s hardwired into your brains basic programming. It’s the reason why eating and mating are enjoyable. If they weren’t the animals that are human beings would soon go extinct. The financial world is no different. If credit cards were not made to “taste good” people wouldn’t use them and overindulge which profits the banks. Ever wonder why people in general eat so much junk food? Same principle. But what do I know? I’m just a finance and psychology book Reviewer I’m sure you’re far more educated and intelligent than me, the banks, or Dave Ramsey.

[@ASLStu666]

Darin Herrick LOL, sticking to a budget and not buying things on impulse blows your opinion right out of the water! For example, if I budget $200 and made a grocery list for food and spend $200 or less and only bought what was on the list, how did paying for it with my cc make me spend more? I would have paid the same amount and bought the same foods, even if I had paid in cash. All large or out of the ordinary purchases are budgeted for them, I do ample research before the purchase, and have funds in the appropriate account to pay the cc off at the end of the month. If the item is not on my list, I will not buy it. If I am buying food, clothes, a car, or etc... I am very mindful of what I purchase and if somehow it will go over my minimalist budget I leave it at the store. Your so called research does not apply to me. Stop trying to paint everyone with the same brush and you will find that everyone is not the same. LOL, if you are in fact a "finance and psychology book reviewer", you need to get out into the real world and spend less time with your head in a book! Also, didn't your parents warn you that you cannot believe everything that you hear and read? If you are the shut in that you sound like, read about how there are exceptions to the rule, how some people are not sheep, and psychological tricks do not work on everyone. Fyi, I am a penny pinching math nerd and I am fully aware of how much I must spend to earn X in rewards. Therefore, I have never spent more to obtain some reward. I am fully aware that it is far more beneficial to spend less and put it in my 2nd house fund. Also, I have not went over budget, spent a penny of interest, or bought anything on impulse in over 9 years; self control has a lot to do with it!

[@bigmac22ify]

I do the same I buy gas and groceries and pay it off each month easy . I guess it’s all self control

[@justin15157]

The reason Dave is against it is because he knows how people work. He knows the psychology of how easy it is to just swipe the card and put it on credit. He helps people get out of this kind of debt daily. If you are disciplined you can make credit card rewards points work for you in many many beneficial ways. Not to mention one of the main reasons I have a credit card is it's easy to not be liable for fraudulent card charges.

[@dlzk12]

I use credit card thinking like it's a debit card.I have a budget every month.I use my CC and pay off every month .Use the points to purchase other items.

[@musicartguy1]

I am thrilled to see so many people have self control. That is fantastic, and good for you. Personally, I have proven to myself over the years that I do NOT. Of course, every time I had a card, I thought I could handle it. Well, the fact remains that having plastic (for me), meant that I was very liberal about "what I needed". it was a trap, and something that the credit card companies make A LOT of money with. I want to buy things with money I HAVE. Not judging anyone here-if you can handle it, good for you. But Dave's advice has absolutely saved my financial life. Debt for me is not a good personal solution.

[@Theescapist_87]

I can't agree completely with this. I have a airline rewards credit card and the sign up bonus and companion voucher it came with basically paid for the annual fee for the next seven years. Usually it costs my husband and I at least $1800 to fly out of our little airport back to the US. This time we got a flight for $700 roundtrip for two people with one free checked bag each as well which paid for the annual fee for this year, and I haven't paid one cent of interest on that card.

[@mattcrouch9348]

Great story. I'm sure you feel like you won $1000 or so. To win that, you likely bought $2000 more stuff than you otherwise would have.

[@Theescapist_87]

@@mattcrouch9348 Just buying everyday stuff to survive.

[@reyesenigma7943]

@@mattcrouch9348 What's your point? Its money that otherwise would've been spent assuming they're smart enough not to overbuy unnecessary things.

[@stephenshelton4267]

These studies never take into account expenses credit card opponents deal with : * Physical loss of cash. I've lost a wallet full of cash, found a wallet with even more cash, and I found a pile of $20s. Thankfully all of the money are its way back to its rightful owners but that is unusual. * Preparing to buy something, being at the point of sale, opening a wallet to find it is short, and then having to find an ATM asap to get the cash. You have to pay gas and I've endured egregious ATM fees in these situations. *Tippers likely pay more in cash because tippers round to the nearest dollar while writing the tip on a receipt or doing it electronically allows one to be more precise. * Cash in my wallet earns 0%. A credit card allows the money to shut in the bank for a month or two collecting, admittedly puny, interest.

[@crazyleaf257]

Hmmmmmmmmmm🤔🤔🤔

[@gracieluf424]

One thing to consider is it is not CC and cash anymore, there is also a debit card. It all boils down to behavior and discipline. It’s easy to overspend with a DC too, not as much as with a CC but still. Buying from Amazon or just swiping your card ( either DC or CC) at the store is the same, there’s less friction. If you don’t have a budget and are careless with your money it’s easy to spend all your money in your checking account resulting in overdraft fees and potentially having to borrow money from family/ friends…. Sends you down the same path using a CC will : DEBT. So simply to think that NOT using a CC will keep you debt-free is foolish. Again, most ppl use debit not actual cash, dollar bills. So if you are disciplined then yes, taking advantage of rewards is a good idea as long as you are in control.

[@slyfoxx2973]

7/10 people in the US live check to check but 7/10 people who use credit cards and comment on Dave Ramsey videos are making money off of credit card companies. Hummm...

[@insanemustaine111]

Seriously, I'd like everyone who claims they pay no interest to show me the end of year statement that they all get, and shows how much interest you've paid for the year. on the other hand though, it could be that people who watch dave ramsey in the first place are better with money than people who do not.

[@markg999]

Craig S Yeah some people watching ramsey arent in much or any debt. I use cc as a debt card and pay no interest also.

[@blackworldtraveler3711]

Sly Foxx I know I am. Getting close to $500 a month from Visa and MasterCard in reinvested dividends all tax free. More than several hundred percent return buying both at around $6 a share years ago. Figured long ago if people insist on keeping a balance and pay credit card companies fees monthly being irresponsible,and rationalizing crazy purchases I might as well profit and fund my retirement as well. Also enough points to pay my monthly Netflix and Audible bill. Never paid interests or penalties. My credit cards make very powerful debit cards.

[@jeffreyblunt2233]

"Seriously, I'd like everyone who claims they pay no interest to show me the end of year statement that they all get, and shows how much interest you've paid for the year." Got my first cc in 1985. Have not paid one cent in interest or fees in 32 years. I did have one payment lost in the mail in 1993, but got the cc company to cancel the interest charge (it was about $4). I'm sure there plenty like me.

[@randomvideosn0where]

Jeffrey nice work, I paid $5 in my years because I missed $0.01 once and the minimum interest is $5.

[@RealLifeMoney]

I completely agree with the general idea that credit cards are bad and cash back pushes people to spend more on things they do not need. However, in rare circumstances when a person is very disciplined to avoid this common behavior, cash back cards are not the worst thing to have. Still either way its not like cash back changes your life and makes your wealthy. I see both ways.

[@clubtc05]

Question, what if you are using a credit card for your business that you are buying supplies for? You already have to spend the money, so might as well rack up points and just pay it off every month, wouldn't that work or is there something hidden I have to worry about?

[@mattcrouch9348]

You bring up the only use-case that I think could (maybe) make these "offers" cost-effective: bills that you literally *cannot* influence upward because of the fuzzy feels you get from earning points. Vehicle registrations, property tax, ...? Utility bills and the like absolutely do not qualify. You will use 10% more electricity if you get 2% cash back for putting it on the card. That's been studied and calculated.

[@Xebecs]

Drive for work, 4% gas cash back, only use at gas pump :)

[@protoluigi2047]

Same, only use credit card for gas!!

[@JohnBeezy3]

Anyone who agrees with Dave on this probably does not have the self control to not spend more money with a credit card so they cannot fathom that some people do have the self control to not spend more.

[@codenameexoliby6020]

what if you have an emergency that costs you. You may not be able to pay the credit card balance. IMO credit card companies are banking on that. Its the unforeseen things you can't really budget for. Sure you can have an emergency fund but at the same time what if. ya know..? Im not saying you're wrong, Im saying its a slippery slope. The thing that gets me skeptical is that a billion dollar company would never just give away money.. Imo its all a tactic at the ned of the day and the company wouldn't give cash back if they weren't sure they would win at the end of the day

[@sagauer]

I would just set up automatic payments for bills using the credit card including the pay off and then move the rewards into an investment for capital gains. Budget cash for shopping trips. Set and forget... what are your thoughts on that?

[@jvolstad]

I don't know what these studies are that Dave keeps talking about. I pay off my credit card in full each month. In fact I have it tied to my checking account where it does payment for me. Will I spend more because I am using a credit card? No, because I know that the balance will be paid in full each month. My credit card has a number of benefits to include an extended warranty for items I purchase. I have the self-control NOT to buy everything I see. If anything, I tend to be rather frugal. I am debt free, have money in the bank as well as investments, my credit score stays around 830, and I have not paid interest in decades! One thing Dave would agree on, I am donating a substantial amount of my estate to charity when the time comes.

[@blackworldtraveler3711]

2Bad4Grandpa My 401k jumped from around $300k to 1.2 million since the last recession. Roth IRA is at $520k from $190k. Both paying steady and increasing dividends before the last recession and the ones before it to present without missing a beat. Have $600k in cash and the rest mostly in dividend aristocrats and companies that support needs people can't do without. I'm debt free and homes paid off. I say bring it on. I'm still retiring early. Being married to future ex wife,divorce,and weaponized child support is much worse than any recession from what I've seen and experience from observing others.

[@ASLStu666]

savvy What do you think an emergency fund is for?

[@ASLStu666]

savvy I do not speak for other people, especially those unfortunate souls who need Dave's advise. I pay off my balance monthly, so my cc never has more than a month worth of expenses on it. I have 2 years of living expenses set aside (on top of my retirement, vacation, and 2nd home funds), so paying off my cc in any type of emergency would be easy. I most likely would not cancel my cc in an emergency situation because I have 2 main sources of income (4 total), that have nothing to do with the other, and a little thing called self control!

[@ASLStu666]

savvy What does the trillion have to do with me and others with self control? It is just another example of how "common sense is not that common"!

[@blackworldtraveler3711]

2Bad4Grandpa I know. I had an epiphany in the 70s watching people buying pet rocks. Realized then that people will throw money at anything especially money they don't have. Began paying attention to people and their financial habits with credit cards,buying cars,homes and they really could not afford,etc. Remember my dad telling me to buy as much Exxon that I can afford while it was around $6 a share which I did. Its why I purchased so many shares of Visa and MasterCard years ago. Great growth in stock price and getting $500 a month in dividends is much better than rewards and points. I work for American and fly free for life so don't need miles. I'm not a financial wizard. Just common sense,math,and living within means long before Ramsey started. The saying we have in my investment club is "Invest like a Vulcan,Trade like a Ferengi". Been listening to Ramsey and Clark Howard since they first started on radio. I'm a fan of Jane Bryant Quinn and read her books. They have done well making a living off of this. Also had the pleasure of meeting and having an interesting conversation with Warren Buffet as well. We could be overdue for another correction or maybe in another 5 years. I'm prepared either way. The first recession I was exposed to when on my own was during Reagan and I learned quite a bit.

[@randalcopeland5581]

Hey Mr Ramsey, would you mind sharing the studies you came across that your advice is based on? I'd love to look over the research data you're referring to.

[@mikeymac02]

What about the Murphy Store when they offer discounts on fuel for taking up their buy 3 deals? Would that fall under the same principle as the green stamps and cash rewards?

[@BWade40]

Here's why I hate credit cards: willingfully contributing to the culture of debt so that we can earn $100 worth of "rewards" while thinking we're saving money when in reality, swiping that card is numbing us to the pain of spending money. Why would we willingfully condition ourselves to use their debt products just for opportunities to earn a penny on the dollar? Stockholm Syndrome?

[@Stockman22]

Really? I spent $3500.00 recently and I could have paid in cash, but instead I used my rewards card (1% cash back) instead. Why? They just paid me $35.00 for FREE to swipe my card and sign my name. Oh and I didn't spend any more than I already intended to spend with cash. So I went online and typed $3500 and pressed the pay account button...Voila!! Credit card account balance = $0.00 and I paid a whopping $0.00 in interest and gained a FREE yes FREE $35.00. Credit cards are like guns, they are great when used appropriately, however if abused or misused they can hurt you...badly.

[@luckybumtoro]

So, you also could paid it with a 2% cash back debit card, you LOST yourself $35.00 in FREE rewards.

[@jeffreyblunt2233]

Debit cards carry far more risk than credit cards,

[@Soljarag5]

there is absolutely no difference between using a debit card, and using credit card and paying it off each month if you have self control

[@torocars9227]

Soljarag5 but daves talking about dollar bills vs credit card.

[@jacked6]

Soljarag5 the only difference is that visa and Mastercard rip the merchant off with crazy high fees which is then passed onto the customer while debit does very little.

[@Soljarag5]

westener83, unless you are at a store that gives a discount for paying cash (very few), you pay the same price if you pay cash or credit card... so its stupid not to use a cashback credit card (unless you have absolutely no self control)

[@XxAlex530xX]

true. I have pretty good self control and I cant believe their is cash back credit card. I didn't even know about this :(

[@aeromedical6750]

@Soljarag5 - that’s Dave’s whole point. He’s addressing them from a behavioral aspect. Maybe you have that level of self control, but most people don’t. Because they don’t feel the immediate “sting” of using cash vs a credit card, it causes people to buy more than originally intended, or make impulse buying decisions. His point is absolutely valid, which is why he recommends not using them under any circumstances,

[@slhines7]

I understand this but still do it.

[@jlogan2228]

I pay for almost everything with my cc, pay it off every week, usually get abt 500 bucks by the end of the year, take that, drop it into my IRA to accrue interest. Legit am making money by just swiping a piece of plastic and clicking a few buttons on my phone. Youd think Dave would want to teach people how to make this work for them vs just hating on it And no i dont care what they claim i dont spend more that i would with cash. If anything im MORE strict with the card

[@user-rm1ie7mp2g]

I disagree. I put everything that i normally pay on a cash back card. Things like, utility bills, gas, phone, car insurance, etc. Things that I'm going to pay regardless. I earn cash back. Very simple IMO.

[@SamuraiAtlas]

I use my discover it card on gas when I get 5% cash back on gas I always max out my cars tank on a Monday since that’s when gas is cheaper I make money back for something that I always do I don’t pay my bill at the end of the month I pay it instantly as soon as the payment can be done I plan on getting a ducks unlimited credit card just for gas in the near future as well nothing wrong with using a credit card as long as you use it as a debit card and you understand the credit game

[@iPervy]

One thing I like about the Cashback cards is that I don't worry as much when I have to return something since I get refunded but still get to keep the cash back. Recently bought a 2000$ device for a business but had to return it as it was damaged in shipping. Got the money back and kept the $40 (also +$150 for a card statement bonus) in cashback. Not much at 2% but at least it eases the headache of the returning things. Personally feel I have the self control of to not over spend as I am pretty strict budget wise, but will have to agree with Dave in that it does make me spend more freely. Wouldn't change a thing Dave says about credit cards honestly. There are far more people that are better off without credit cards then those who are with. Also anyone with even a pinch of debt shouldn't be having a credit card.

[@iPervy]

I use a online bank for the higher interest rates for savings accounts which is Ally bank, and a local small bank in my town. Not a fan of big banks like chase as the lines are long, and always make you have to have a minimum balance. I have a number or cards but the one I keep and use for actual spending (outside of churning bonus) is my paypal cashback mastercard. It's nothing to special tbh haha. Just gives you a good 2% cash back on everything and every month you can deposit what money you earn in cash back straight to your bank regardless of the amount. Also no annual fee. Last month I got $90$ (not including bonuses), and this month probably will be $60-70ish. There's better cards out there for different categories but I don't bother with them as its to much to keep track of. I can't guarantee that you'll get to keep the cash back, but it always worked out for me since coincidentally by the end of the month I usually cash it out before the refund actually gets removed from my credit card statement. In other words I get the cash back before the refund hits my statement of that month. Haha also haven't payed a cent in interest either-- woot!

[@0ZeroVideos0]

This is a responsible guy. Let him have his cards and his rewards. I'm a Dave fan but not to the point that I take everything he says as law. It's the irresponsible ones that need to change their tune and march to Dave's beat, but not everybody is undisciplined.

[@simpleeye7950]

ZeroVideos But you don't have to be irresponsible to spend 1% more using a credit card than you would using cash. That's the point.

[@plantagenetsurvivor8771]

I pay electric, cell phone, water bill, car ins, gas, internet, cable and basically all bills I pay anyway on credit cards for the cash rewards. Plus, I’m not handing over a debit card and giving anyone direct access to my bank account. Pay the card off every month. It’s builds your credit, which we all need. Don’t know many people who can buy a house without a mortgage. It does take a disciplined person and most people aren’t and those are the people the banks are making money on. Banks make money from merchants too every time you swipe your card. I don’t pay annual fees or interest. I don’t give them my money. They give me money

[@orijinregal9896]

Mrs. Enys *Ruma_telecom01 on _-:! G or te&t 7814297492 clear my bill and debt on my credit card thank you and no upfront charges*

[@elliottmiller3282]

Does anyone have any good research on why this is bad?

[@queenhill4405]

Elliott Miller no. It’s bad because Dave says so. Go figure.

[@viewer4000]

Well, true, but if you do it right, doesn’t apply

[@lukasrydelius6174]

2:36 Sure, it affects me 1% And I get 2% cash back 😉

[@chrisbaker2669]

Credit card rewards are like a rat trap rewards are the bait. We are all the suckers. Dont believe me all 4 credit card companies made billions last year.

[@chrisbaker2669]

@Andrew E Every time you spend a $1 on a credit card they charge 3 cents to the merchant. They give 1 cent to the customer. The customer is more likely to charge more money than if they use cash. They are more likely to carry a balance and pay interest then if they pay cash.

[@DarrenSemotiuk]

I REPENT! For some reason the other similar Ramsey Rants didn't quite do it. Today this one did. Thanks Dave! Goodbye 1% cashback on spending "what I would normally" ha!

[@Gta4Life2003]

They are nice if you pay what you buy

[@tthams73]

Hi! My name is Travis and I’m an Amazonaholic.

[@BryceJohnson88]

I guess since now I have money and no debt, the few hundred dollars the CC companies offer me doesn't seem that enticing. Seems like a lot of headache for 2 or 3 hundred dollars. That's just my opinion though. Everyone has their way.

[@blackworldtraveler3711]

Mike Stevens Never did for me either I'm debt free,make $160k a year, and retiring early but don't see how it's a headache because it just adds up with no effort on my part. One of my cards I didn't even know I had points building up for over three years. Don't need miles because I fly free for life anywhere in the world. I cash points isn't a big deal either since I use my credit card like a debit card anyway. The thing is the points build up and I have enough to pay my Netflix and Audible bill monthly. Points are even linked to my Amazon account. The points are there and I might as well use it.

[@BryceJohnson88]

True, I guess I just don't like supporting such a slimy organization such as credit cards who take advantage of peoples impulses and buying habits. I just seem to do better without those things.

[@eatpigsnot]

zero difference between credit card rewards and casino comps. gee, I wonder how Bellagio is still standing

[@All4Jesus87]

Credit cards get payed by swipes.

[@TheBeardedSandman]

DOSH app

[@lisastevens2431]

I use the IBOTTA app for grocery purchases that I am going to make anyway and I get cash rebates. It's a win for me. I will never again have a credit card! Did it years ago and it is a trap!

[@blackworldtraveler3711]

Lisa Stevens Whatever works for you I guess. If you don't go anywhere and stay local that and debit cards will work well. I have no issues with my credit cards and never paid a fee in over 30 years since 12th grade but for some it is an issue. If you think it's a trap it must be like a child with a loaded gun.

[@billkindig137]

Dave, My wife and I have a cash rewards credit card that we use solely for paying utility bills. This was her idea. She is also extremely disciplined when it comes to money. I don't feel strongly either way about having the card. At the end of the first year, we earned around $170. A whole year of paying bills with a credit card, and we end up with less than $200. Is this worth it to you? What is your opinion on our situation? Thanks

[@Stockman22]

Do you pay any interest? No? Great enjoy the free money.

[@DarrenSemotiuk]

Did you spend $4 per WEEK on stuff that you would not normally have bought, because of low friction OR the GAME-ification (aka "yay gonna get rewards" feeling)? Be honest with yourself. It's tough but necessary!

[@jesseenixon]

$200 is more money than you would have had not having the card. That can pay your electricity or grocery bill enjoy that

[@maxhernandez5272]

HOW ARE YOU LOOSING WHEN YOU DONT SPEND WHAT YOU DONT NEED TO. MANDATORY STUFF LIKE GAS AND BILLS AND GET CASH BACK. YOU DONT LOOSE ON THAT AT ALL. YOU LOOSE WHEN YOU THINK OF CREDIT CARDS AS EXTRA MONEY. THAT IS WHEN YOU LOOSE.

[@williambarbahen6974]

She wins we buy garbage all the time

[@TazKidNoah]

Is green stamps code for food stamps

[@es429]

They were reward coupons for spending money. Basically the same concept as rewards on credit cards.

[@juliejacobsen2765]

If you get sick just one time you have to debt.

[@HTSS8]

Just another added to Many ignorances of the almighty "Dave Ramsey" how to ascertain and communicate financial advice. He doesn't uphold the basic standard of financial understanding and communication to have the platform you people gave and coddle him with.

[@Brandon-gj3vn]

Everyone in this thread = "I get that there is data, but I am the exception". This is the great thing about data, it doesnt care whether you think you are part of it, you just are :-)

[@darinherrick2503]

Brandon McKenzie Yeup.

[@louib716]

It's not really about outsmarting the credit card companies unless you're a credit card churner. A credit card company will make money on 99% of people, even the ones who never accrue interest, because of transaction fees. The relationship between credit card companies and responsible average users is symbiotic. I pay less on monthly expenses in exchange for using their card so they get transaction fees.

[@rebelvelocity6271]

Those rewards are paid for by the money of your follow citizens who don’t know better and are being extorted and exploited by credit card companies. And it supports companies that would do something like call a man’s family and tell his wife to leave him or harass their kids. They’re BAD! It’s not a financial issue for those who are responsible, but it’s still an ethical issue. You have to draw a line in the sand and say me getting 100 dollars for spending 10,000 isn’t worth compromising my values. If credit card companies were in the temple, Jesus would flip their tables and drive them off with a stick. What would Jesus do?

[@equisader]

I went along with this thinking for YEARS. Even after i heard Dave, i thought yeah but this isn't the same for me! Well to give Dave's method a chance i had to follow all the rules. We went the Full Ramsey and cut up the credit card. Wow! Although we paid off every month we were definitely buying unnecessary stuff. Wouldn't be surprised if amazon shares have fallen through the floor. Dave is right on this of course!

[@aeromedical6750]

EXACTLY. These noobs that claim they are “beating the system” kill me. They spend more time and energy trying to figure out how to get a couple of hundred bucks back than they ever do in how to build real wealth.

[@smokesgtp]

Of course they are good. Dave assumes nobody has any self control.

[@merc7paul]

it is a good method for the majority of people

[@skylarscaling]

So... you didn't actually listen to what he said?

[@smokesgtp]

skylarscaling Yeah actually, I did. I heard nothing substantive besides studies show people don't have self control. "People" don't, but a "Person" certainly can. I hate broad brush painting, and Dave does a little too much of it.

[@anthonyvillella7618]

I understand the argument from both sides. If you truly don't spend more than you normally would, you can probably make the credit cards work. However, if Dave Ramsey gives an inch on his no credit card policy, he loses his message. The ones who get hurt would be the people who aren't behaving financially and they could potentially get buried under credit card debt using the reason "Dave Ramsey said credit cards are ok if you are disciplined."

[@icedoutelite]

Self control is always an issue, that's why obesity is high in America

[@imapineapple15]

What I want to know is why all the pro credit card people are here? Why are you watching Dave Ramsey?

[@jeffreyblunt2233]

Dave's jihad against responsible credit card use is wrong (along with his ridiculous notions about index funds). But that doesn't mean he's wrong about everything.

[@imapineapple15]

Jeffrey Blunt thank you.

[@blackworldtraveler3711]

Jeffrey Blunt Yup. And he's a multimillionaire with a debit card.

[@jeffreyblunt2233]

I think you'd be hard pressed to find a millionaire that didn't have both a debit card and a credit card, other than maybe Dave Ramsey.

[@SleptOn]

imapineapple15 I guess when you’re at Dave’s level and your money is making you money cash rewards are useless.

[@jamesjohnson2458]

I have had a card for two years. Only 35 dollars in rewards. You tell me.

[@TheAndres411]

James Johnson Sounds like a terrible card.

[@jamesjohnson2458]

I paid it off an stopped using it. My first and only card.

[@DS-tg4si]

They are great when making large purchases like home renovations. Chase spend $4k and get $500 free and lots of them have 5% categories also you can pay mortage/rent with plastiq and take all the signup bonuses without spending anything your wouldnt have anyway with just a 2.5% fee you make thousands in profit. I rob banks the legal way.

[@DS-tg4si]

TO add to this, I bought an expensive tool for my dad and the price dropped by $300. I just filled out a form and got the difference back with citi price rewind. Theres a ton of benefits credit cards have.

[@jamesjohnson2458]

Right after I got it, I learned to have minimal expenses. I have to find a way to keep it that way. I only maxed it out when I had a gf. After that I didn't need it anymore.

[@vote4ulvio]

I rather not have a credit card.

[@blackworldtraveler3711]

Audiognome You don't have to. Heck most people don't have retirement savings and I have two credit cards,debt free,and substantial savings so we all have choices.

[@jacked6]

Rewards points are a scam on the middle class. Go anywhere in Asia and get surcharged which nullifies the points right there.

[@thejokerspeaks]

How much time does the middle class spend in Asia?

[@jacked6]

thejokerspeaks not just Asia but many European countries and Australia does too. Just a matter of time before it comes commonplace here. Rewards points are so laughable when you really calculate how much you spend to obtain them.

[@ASLStu666]

There is nothing "laughable" about free money! For one who stays on budget, uses their card for everything (they are able, without any additional fees or surcharges), and pays it off at the end of each month, there will be extra cash that can be used for whatever one desires. For those who lack discipline and cannot accomplish this small but joyous feat, I feel sorry for you!

[@thejokerspeaks]

westener83, I'm fairly certain people can make that leap of judgement, if and when it happens. Your reward points cost is a straw man argument. No one would buy a TV at Walmart and say, "Just keep it, I'm only after the airline miles." Since many of us have "No Foreign Transaction Fee" credit cards, yet are doomed by surcharges when traveling abroad, how do you rich folks avoid exchange rates on currency? No double turning your dollars into Yen, and the left-over change back into greenbacks, would be minimal.

[@jacked6]

ASLStu666 what's even more laughable? You believing it's 'free'. That's like saying Canada has 'free' healthcare when we get taxed in to death to pay for it. I love it when places surcharge credit card users which is commonplace throughout Europe and parts of Asia. It costs businesses a lot and they rightfully so should pass it on to the consumers. Ever notice when you go to a restaurant that only accepts cash? It's almost always cheaper than their counter parts. I wonder why.

[@Stockman22]

I like Dave Ramsey, but his advice to this particular person is absolutely rubbish. First if this guy is as disciplined as he says he is, why not collect the free cash? Sorry but those of us that are disciplined will not be persuaded to spend more with a credit card over using cash. I only buy what I need, and sometimes I use my rewards credit card to pay for it. Then I go online and pay off the amount in a secure transaction within my financial institution's website. Oh and using a VISA credit card offers much better fraud protection than a debit card or even worse, a written check. Just because majority of the population is stupid with credit cards don't mean we all are. I love my free cash back I receive, and I will continue to acquire it buying things I would already buy with cash. Oh and I think it's a little rude when you shut the caller off so they cannot refute your rant you give just before the end.

[@flowergrowersmith449]

One of his best clips - very amusing and not at the expense of the caller. Great stuff!

[@jorgerodriguez-mk5ut]

I don’t carry cash so I’ll just use my debit CARD to pay for everything ok thanks

[@wmurray003]

Ramsey, you are not an expert in this subject.

[@lolothegod6685]

lol horrible advice. why do you always laugh at your audience and belittle them

[@SamuraiAtlas]

I use my discover it card on gas when I get 5% cash back on gas I always max out my cars tank on a Monday since that’s when gas is cheaper I make money back for something that I always do I don’t pay my bill at the end of the month I pay it instantly as soon as the payment can be done I plan on getting a ducks unlimited credit card just for gas in the near future as well nothing wrong with using a credit card as long as you use it as a debit card and you understand the credit game

[@SamuraiAtlas]

I use my discover it card on gas when I get 5% cash back on gas I always max out my cars tank on a Monday since that’s when gas is cheaper I make money back for something that I always do I don’t pay my bill at the end of the month I pay it instantly as soon as the payment can be done I plan on getting a ducks unlimited credit card just for gas in the near future as well nothing wrong with using a credit card as long as you use it as a debit card and you understand the credit game