Why Dave Ramsey Is Dead Wrong About Building Credit (Reaction Video)

[@tjonesauto]

I took the "shred your credit cards" advice and went cc free for 5 years. Had very good credit prior. When I applied for credit the records came back INACTIVE. Am now starting over with secured cards because no one would approve me. Now I have secured cards to build credit ALL OVER AGAIN

[@SheTalksFinance]

Ugh I’m sorry to hear that!! Exactly why I think his advice here is terrible … good luck building back

[@rnt45t1]

Dave seems to think people can "pile up cash really fast" once they're "debt free." I sold my car for $21,500 in December because it was a five year old car and it appreciated over 30% in six months. I spent every dime of that money paying off some credit cards, medical debt, and what was left of my student loans. I have only saved about $12,000 since I did this. It does not happen "really fast" like he promises, and the $1,400 car I bought when I sold my Challenger SUCKS somedays...

[@SheTalksFinance]

Yes exactly. It takes a while for most people to save the kind of money needed to avoid ANY debt at all. He does say he supports mortgage debt, but, need to do it with a good score to get the best rate imo!

[@eGEORGE]

@@SheTalksFinance he supports mortgage debt, just in an elitist tone that makes people feel dumb for asking about it "...you wanna be in debt."

[@bite-sizedshorts9635]

I would think that $12,000 in just a few months actually is really fast. Keep doing that, invest it into the types of investments Dave recommends, and it will add up pretty fast. You're not going to be a millionaire overnight, but you will get there in a few years. If you don't continue, you'll never be a millionaire.

[@kurtl8660]

About your car, you’re suffering from the bias of retrospect. (Rearview vision is 20/20). No one should have made decisions expecting car prices to have appreciated as they have. That would have been irresponsible. I personally would be happy I’m no longer a slave to debt.

[@cordiallake595]

Yes very true about it never being a fast process unless you are making millions of dollars annually . But then you wouldn't need credit or loans anyways . I'm not a financial advisor . All I can say is what I'd do . First I'd invest in things that don't rely on others . Such as stocks and bonds for example Corporate and us treasury bonds . I can't say which is better . As I personally don't have the funds yet to do the corporate bonds a $1000 minimum yet . Heck if it is turning in aluminum cans into the recycling center if it makes money why not ? In that order 401 k , bonds , stocks , money market accts at a bank , savings , hustle . I might of missed a few . Then anything else that makes money that might rely on others like a youtube channel , a small business if that is your thing . Now on the debt side of course if a credit card pay the full bill . Like mine I usually end up using about $1200 a month on the credit cards alone . But pay that full $1200 about 7-10 days before the closing date on your statement . Then there are ways that you can build credit without the card and it won't hurt your credit rating such as for example when you shop using that stores financing sometimes only available when shopping online . Example Walmart - Affirm . Meaning lets say your credit limit is $5000 . Then you need a new laptop . So instead of using your credit limit and paying for it with that . Using the financing will decrease your utilization percentage . Example say it is a $1000 laptop . Using your credit card with the limit of $5000 . That's 20% used already . With $500 left to use . Using financing will temporarily show on your report as if you have a $6000 limit . Meaning that $1000 used towards the financing with show as 16.6 % leaving $666.7 to use . This is so it stays under that 30 % utilization . Or medical financing . Only for that it has to be stuff that costs over $500 as of last June or July . Plus buying in bulk if it saves you money then why not ? Like I did it with my phone service paid for like 10 years of service upfront and popped that on the credit card . This all will help long term because regardless of your credit one thing they might ask for usually is proof a payment history of a minimum of two years . With the loan I'd say pay 30% upfront before getting it . With a loan with no penalties for paying extra or in advance . Then whatever amount they consider that amount as 80 % of what you should pay . Example they tell you to pay $800 a month . Ignore that and pay a thousand a month . Then as far as applying for credit cards keeping it at a minimum of 1 every 8 months . Being that yes it is said you should not apply for more than 1 every 12 months . But it is also the lowest on the totem pole of what credit agencies look at in determining your creditworthiness . Top two the look at are the oldest card length of years and on time payments . As long as along with spending within your means you can't go wrong . Anyways I wish you best

[@Another_Bad_Creation]

I bet money that Churchill mortgage is paying Dave to point people to them.

[@Mylifeonart]

Of course they are. He’s such a fake.

[@dustinjohnson7191]

You mean he has a sponsor for a radio show? Shocking

[@JJ-zr6fu]

Dave didn’t become close to a billionaire because he was dumb no he’s a sharp businessman. It’s unfortunate though because the way he became rich isn’t what he teaches.

[@fuzzjunky]

here in Australia we don't have "good credit" or credit ratings as such. we only have "bad credit" where you have a strike against you. if you have no credit history, and do have assets, and a job, they think you are a perfect customer. no credit score needed

[@michelleh4717]

as it should be. the system in the us and canada is so dumb

[@timj851]

The banks are winners here not the consumers.

[@amireallythatgrumpy6508]

A much better country than the USA.

[@marylandmike7655]

Imagine you took Dave Ramsey’s course, paid off all your credit card debt and cut up all your cards and months later your debit card is hacked…… it happened to me, what a nightmare

[@Cynthua-yc9zt]

That is why I refuse to get rid of my credit cards. Helps protect me.

[@marylandmike7655]

@@Cynthua-yc9zt I have cards now lol and use them to travel for free…. balance and discipline….. I PAY ZERO INTEREST!

[@JSWeightLoss]

I've had my debit card hacked several times. Either the bank or I caught it withing a few days and I didn't have any issues with clearing it up. The bank reimbursed things I did not purchase, and new card sent out. Maybe banks handle things differently but what was the nightmare for you? I am a Ramsey fan, but I do have 5 credit cards with the limits totaling to $110,000. I do not carry a balance 99% of the time. It has just become a game to see how high I can get the limit up to. Credit score 830-850, whoop whoop!

[@coreyburke3493]

I feel like guys like Dave who tell people there's only one way to get out of debt or only one way to be financially responsible are all hacks and frauds. His budget app is even sketchy. I wanted to try it out and for any of the stuff that makes it useful you have to pay $15/month or something like that. Meanwhile rocket money gives me the same stuff for $3 lol

[@derrickyegge1303]

Get a bank that covers you up to 25k. Mine does. They're out there.

[@jlogan2228]

Dave lives in a bubble of "im rich enough i can buy whatever I want" You absolutely have to have credit for a mortgage bc an underwriter looks at your credit history, you also need credit for any loan you may take out, anything you need to finance, most apartments require a credit check, and even some jobs look at your credit score.

[@nathandennis8078]

Your taking out mortgages on a want change your behavior and you'll realize you don't need credit

[@amireallythatgrumpy6508]

Apartments are not fit for human habitation. Only an idiot would consider living in one.

[@RossLemon]

People who complain about credit are those who don't understand it.

[@amireallythatgrumpy6508]

@@RossLemon Or those who laugh at how stupid and absurd it is. There's a reason that it only exists in hellholes like the US.

[@Undefined14]

​@@nathandennis8078Dave literally says himself how important homeownership is in order to lock in a significant portion of your housing expense, and recommends a mortgage to do so. But then like the slimy creep he is he sends people to a sponsor and LIES about the interest rate. He went financially bankrupt forty years ago, but he's morally bankrupt to this day.

[@jculver1674]

As someone who has worked as a loan officer in the past, Dave is technically correct that there are loan products out there for people with low and zero credit scores, but the terms are never favorable for the customer because the bank always sees them as an increased risk to lend to. Not to mention that these kinds of alternate loan options played a big part in the housing bubble bursting back in '08. You're way better off just building a good credit score (responsibly) than going that route. That said, I agree with Dave about avoiding things like student and car loans if possible - I can't tell you how many house-shopping customers had their borrowing power ruined because their existing car and/or student loans were too high.

[@amireallythatgrumpy6508]

You're better off living in contries that consider credit scores absurd than living in a hellhole like the USA.

[@philochristos]

I like having a high credit score even if I don't use it. I dunno. It's psychological. It just makes me feel good about myself.

[@yvonnebaker5174]

Having options are always good. Good credit and a decent bank account gives you options. If you can pay cash for a car or anything and still have $$ in the bank more power to you.

[@nicholasworsley4246]

Dave’s advice is good for someone trying to get out of debt in the 80s or 90s. He hasn’t updated his methods w the times

[@JJ-zr6fu]

It’s really shady that Dave doesn’t declare a financial interest in the products he pushes. No way that mortgage company isn’t paying him or the investment professionals he pushes.

[@crow-vz5lx]

Also. I Called Churchill. The dude told me to get a credit card to build it up. He actually said " I'm not gonna say to go get a credit card" buuut" i said ok got you

[@rottiboy.8041]

I live in BC and where I live houses start at 750k. Trailer in a trailer park is 500k on leased land, condos start at 600k. Bank won’t even talk to you with out a very good credit score. It doesn’t happen.

[@ccb6013]

Many jobs, insurance companies, and apartment buildings check credit scores. I'm in government. I can confirm that most government organizations check credit scores before they hire you. My credit score also lowered my insurance premiums. Dave is so out of touch that he doesn't have any business advising people until he does some more reading himself. Many apartment complexes require significantly higher security deposits if you don't have good credit. Is it really better to have to pay six months rent in advance?

[@SheTalksFinance]

Agree with you 100% - thanks for chiming in with your experience!

[@JJ-zr6fu]

What’s 10-20% increase on expenses to someone with a networth way over 100 million. He taught me to respect debt and its dangers but he’s basically useless after that

[@CLJlovesmal]

I needed a credit score for my first apartment. They were shocked a person in their 20s had such good credit. When i went for my first car loan, my score was good enough, even with a high debt-to-income ratio that i got an extra $500 on my car loan and i ended up with 1.49% interest and under $200 car payment. When i went on short term disability at my job, a clause in my car loan contract had the credit union pay for the last 6 payments. Sorry Dave but my credit score helped me look good to companies and helped me keep my job by getting me a car loan. Everyone around me was shocked at my interest rate and monthly car payment. One person thought i was rubbing it in his face.

[@23majesticblue]

My dad and I went from a house to an apartment, the landlord asked for proof of income and to check our credit score. I have lived in plenty of apartments to know this. I got a good apr on my current car loan due to my credit being over 700.

[@SheTalksFinance]

Yes, good credit helps you pay less interest over your lifetime

[@datnohi8612]

Totally agree 👍 my score is 760, and I walked out of the dealership with a new car at an interest rate of 3.47

[@amireallythatgrumpy6508]

Apartments are not fit for human habitation. The only creatures that live there are spiders, bedbugs, cockroaches and rats. Which one are you?

[@autonomousglisteningwater2286]

You didn’t cover the rewards cards much. Anyhow, i use rewards cards to pay for everything. I pay no interest because I pay off the card in full every month. Gas, groceries, utilities…. Everything. By the end of the year I rack up about $400-$500 in rewards points. I can get a check or credit to my account. Plus, as you said, my credit card has no liability for fraudulent charges. I have a back up card, with rewards too that I use in case my card gets frozen, which it has happened. Haven’t paid credit card interest in years. To me the interest rate doesn’t matter as long as you live within your means and pay your card in full every month.

[@tracytb8869]

I too purchase my household groceries on my travel rewards card, paying 0 interest. Never carry a balance, always pay in full. One free airline ticket is the annual reward 😊

[@jlogan2228]

But dave and his cult will swear its impossible for you to do so bc youre automatically going to spend so excessively if you dont have the pain of paying in cash blah blah blah a debit cards just as good blah blah blah Like yea I may splurge on a pizza with my credit card or buy myself a t shirt on occasion but ffs isnt part of financial freedom to be able to ENJOY your damn money within reason too? Honestly i have abt 5k in debt total these days and plenty in the bank, investments and cash. The interest I pay on the cards is negligible and frankly my financial freedom is not being PETRIFIED of having a small amount of debt

[@judithandersson]

Thank you for clarifying, I never had a credit card and ppl tell me I am "missing out" on points and stuff. I alway though it was something substantial like enough points to travel around the world or something but $500 isn't more than a Spirit flight to Ohio. No thank you!

[@andykleschick2047]

She does cover this in another vid posted like 3-6 months before this one. At least from a perspective of it’s okay to use the points and some drawbacks of it just for the points or rewards

[@EnriqueRojasmusic]

This was a great video and very informative! I really like Dave Ramsey’s philosophy from a psychological point of view, and self control, but I do think that credit is also an important tool that used properly can be very beneficial.

[@nosondaitchman9073]

This is my biggest problem with Dave. If you are giving financial advice to the level he is, there is a huge conflict of interest to having partners in the financial industry and recommending them on your show where you get a kickback. How can people trust that you're giving them the best advice if you benefit from certain recommendations?

[@SheTalksFinance]

Well said, my friend.

[@natelevy1040]

He's a multimillionaire! You've got to trust he knows what he's doing when he recommends the companies that give him millions of dollars 😂

[@AK-47ISTHEWAY]

​@@natelevy1040He just also had a multimillion dollar class action lawsuit filed against him for promoting a timeshare exit fraud scheme. They were paying Dave over 400k a month to advertise for them on his radio show.

[@Skank_and_Gutterboy]

It doesn't sound legal but I'm not a banking expert and I don't play one on TV.

[@bradcruise6291]

He's slimy and unethical. And he hides behind being a Christian. He's a damn hypocrite and I don't like the guy. He's a load of shit

[@sonjamccart1269]

Your credit score affects your insurance rates. Not having a credit score is fine if you are very wealthy and don't need insurance, or less than 1% of the families in the US.

[@amireallythatgrumpy6508]

Or if you live in one of the many better countries than the USA

[@mycadowney430]

WRONG!!!

[@joelscott1898]

Getting a 30 year fixed rate mortgage is in itself Shorting The Dollar. I don't see the point in paying my mortgage off early to save money 20 years from now. Imagine what a cart of groceries is going to cost in 20 years...

[@rolandhansen812]

You can build credit without going into debt. Just pay off your CC every month in full. No interest charges. You will show 100% on time payments. Probably low credit utilization.

[@cordiallake595]

Totally agree I'm thinking Dave goes on the notion about how interest rates can be used towards filing taxes as a write off . For me personally I find that process as an extra unnecessary step . I would rather pay off a debt as quick as possible and get the reduced amount without filing a tax form . Like maybe finding the best loan options without penalties for paying extra in advance . Agree about the needing credit . I once went into a bank to apply for a loan to buy a house with my at the time girlfriend . My score was about 720 at the time , hers was no score at all . They said the most they could loan was $10000 with me paying about $3300 plus the fees for filing upfront . So I suppose his method would work if my girlfriend and I purchased a storage shed from Home Depot and lived in that . An issue that he overlooks in the comparison with good or great credit scores versus the one he mentioned . Is that one without a credit card history there is no payment history except maybe through financial assistance ( affirm , medical , dental ) . So I guess that would be ideal if the person in question wants to pay off a couple hundred thousand in purchases at walmart and I don't know maybe a cat scan and a full set of false teeth before buying a home . Two with credit cards they don't really check anything important . You can put on the application that you are a microbiologists and you make $250 mill a year . That's literally what I put down to get my Chase card . I'll gladly pay that $95 a year for that card . On the other hand places that do check they will base it on how often you use the card . So it can kind of hold you back long term and become an expense itself when you need to make that $3000 purchase aka needing a $10000 line of credit . For things like starting up a small business . If the credit card company won't increase your limit unless you make additional use of your card . I also found that suspect how I as a consumer read when they say " we do not post this because it confuses customers " - we do not post this so it confuses customers . Totally a good thing to have a history with these credit card companies . So you have them backing you if later down the road if you need a loan . Something for him to think about - me on a fixed income $900 a month plus side hustles ( investments , youtube ect . ) a total credit limit of $12,100 and a 780 score history with capital one , us bank , chase versus -me with no score and a fixed income of $900 a month . How likely they would loan me money if I needed lets say $4000 the minimum cost to start a small LLC business .

[@kennethroyer9949]

Renting without a credit score: My wife and I are retired and due to the insane real estate values we sold our paid off home and now live in a very nice apartment complex. Yep I ran into the we can't rent to you as you have zero credit. I even offered to pay the entire 1 year lease up and it was still a "no go!" I thought to myself WTF?? Keep reading there's more to the story! So...I called the president - [I was surprised as I got through to him] - I explained my situation and that I was willing to pay the whole lease up front. He said "Of course no problem." Thinking fast on my feet I asked "If I pay for a two year lease will you give me a 20% discount??" He thought for a moment then said "Sure why not; no problem." He used the phone for a 3 way call cleared up the problem with the women at the leasing office and we moved in pronto. The moral of the story is two fold. 1.) Money talks and BULL SHIT WALKS 2,) Ask for discounts

[@anthonyjoseph9229]

A couple of points to add to the mix: 1) Just having a student loan generates a credit score, as I have discovered with my kids. 2) It seems paying a lot of credit card interest really boosts your score. I would not go chasing the highest score in order to get the lowest interest rate.

[@Because-rt8qs]

I used to work at a furniture place that offered their own in house financing. This elderly couple came in the middle of summer to buy a window unit AC.They had always bought everything with cash, so they had no credit history. But now they needed to finance this AC. And didn't qualify. 😢 So we let them finance it anyway because they were old and probably would've died in the heat without AC. But I'll never forget it. When they needed credit, one time in their lives, they didn't qualify.

[@mikeb1520]

Another area where credit is important, if you have a traveling job, you will need to pay for travel expenses. Some companies get you a company card in your name, or may require you to use your card, but in either case, you will need credit to get approved for that card since the bill is coming to you to get paid. I can get my expenses reimbursed before the credit card bill arrived in most cases, if I only had a debit card, that money is coming out of my account as soon as I charge it. It was not uncommon to have $5,000+ expense charges each month, no way am I going to float that.

[@amireallythatgrumpy6508]

Just travel to a better country that laughs at credit scores.

[@TheStrawKnight]

I used the baby steps from DR to get out of debt and it works. His idea of saving 15% or more is solid. After that I no longer took DR's advice on investing or use of credit, or how to allocate my investments, instead I invest using index funds and use credit cards paying off the balances monthly. I paid off my house as DR advocates over 15 years. So DR is good inspiration for paying off debt, but think for yourself!

[@SheTalksFinance]

I agree he's great for people who need to get out of debt. He has helped a lot of folks

[@melvinbarnes6652]

@TheStrawKnight I agree. Dave Ramsey's methodology is solid and does work. It's not the end all be all. Like you, I used his method and then adjusted as I became more financially aware.

[@Ryan125y]

Why would you want to build credit? To buy a home! If I rent and try to save enough to buy a home in cash. I need 500,000 in cash, that will take over 20+ years to get to 500,000. And guess what? That house is now 1.2 million. Which means you would need a loan for 700,000 to buy what you could have 20 years ago for half the price.

[@eGEORGE]

Manual underwriting still requires you to have a history of credit worthiness. If you're making payments on time and a responsible borrower, you should just get a credit card and be rewarded for it.

[@samuelburton9761]

That’s why a lot of the guys at my job have apartments instead of houses because their credit score is bad. Not because they can’t afford it.

[@SheTalksFinance]

Yes, I see this a lot too

[@vvelius]

36k at 7% compound over 40 years is 274k. Yes the flow of payments doesn’t work like that, but it’s neat that the compound of the difference is so close to the interest cost of the 400k loan.

[@Seraphina_Atley]

I use my CC for basically all expenses and PayPal for the rest, all for security reasons and to earn points. I pay it off every month and never spend an amount that I couldn't simply pay off the same day,

[@coreyburke3493]

I've heard Dave recommended a 8% withdrawal rate for retirement. He's recommended someone sell their $24k car and use a credit union loan to pay the upside down amount. Then buy a $1k car. He's BEYOND out of touch. You can't get a reliable car for a thousand dollars.

[@josh885]

The main thing people miss is who Dave's market is. It's not someone who is responsible enough with credit to have a good credit score. It's people who spend recklessly and mostly already have bad credit card debt on top of a car loan on a car that was too expensive for them to make the payments on. Those are thr types usually calling into his show and who his advice is for. If that's not you, his advice is terrible. If it is you his advice can help you dig yourself out.

[@JJ-zr6fu]

This is true but once you get your debt under control all his other advice is basically garbage as well. For instance mutual funds over indexes or being able to withdraw 8% from your retirement funds. Then he has George kamel saying how he became a millionaire through the Ramsey method but neglects to point out he’s a very high income person

[@JamesSCavenaugh]

Another advantage of credit is for the emergency. Instead of stashing money into an emergency fund, I'd say that's what good credit can do for you.

[@JJ-zr6fu]

This is a horrible idea most people should have atleast 6 months of an emergency fund.

[@davonbenson4361]

Dave’s advice only works if your willing to sacrifice your youthful years, to gain wealth at an older age.

[@jonathanl5638]

the reason dave mentions churchill is they are a sponsor he makes a commission everytime one of his listeners signs on as a client

[@verser6717]

ehh... I'm not sure I agree with all this. I'm not totally anti-debt, but I think debt gives folks an easy way to solve a problem instead of getting creative and going without or finding another way around a financial problem. Just like most financial decisions, whether it's good or bad depends on your circumstance and situation. Though I would argue most folks go into debt in order to live beyond their means. Just look at consumer debt levels...

[@elliotjames5172]

You certainly have a point. It's important to have these little governors in your brain when it comes to credit cards. If you never pay interest fees (or annual fees unless you have a really, really good reason) credit cards are a wonderful tool.

[@Andrew-it7fb]

I could have continued to rent rather than buying my house with the same monthly rent as my mortgage payment. If I had to save up and pay cash, I wouldn't have been able to put as much in my 401k and IRA. That just didn't make sense. I could now pay it off early, but I'm earning a higher rate with my money than I'm paying on my mortgage.

[@yvonnebaker5174]

Someone who overspend and or has a cash flow problem, may have other issues going on that should involve a therapist. The psychology of money and how people use it may be the real issue.

[@leesmith9299]

A more appropriate and possibly more damning comparison could be the interest rate this company offers with no credit score vs the best on the market with a credit score. The interest rate difference is probably more than 0.5%.

[@SheTalksFinance]

I have seen comments from people that it in fact is more than .50% in most cases... I believe it.

[@jeromehenry4484]

Chances are you can add 2.0% more to 800+ credit score rate.

[@mjanke28]

Even rich people use debt to make more money...

[@edgar22452]

Exactly!!!! How many times he went bankrupt again?

[@jlogan2228]

I legit used credit cards to pay for a masters degree that got me a job that was almost double my pay. Oh boo hoo I had some.debt and even had to pay some.small interest but if I hadnt had been willing to take on some debt I wouldnt have been able to to get ahead.

[@edgar22452]

@@jlogan2228 Exactly! Having some debt saves money.

[@yvonnebaker5174]

Except Dave of course.

[@jgalt8128]

You are correct about the need for having a good/excellent credit score. It is possible to have a credit card and NEVER pay a penny in interest on it. I've had one for 14 years and I've never paid a penny in interest on it. I use it for two reasons. I use it a means of fraud protection and I use it for large purchases like appliances and furniture. Otherwise, I use a reloadable debit card for all other purchases (also a way to protect against fraud...I only lose what is on the card if compromised).

[@kennethroyer9949]

Get in line to start hating me NOW! When it is a home purchase I've found that the vast (85%+) majority who want to purchase a house don't have a pot to piss in. When doing a manual underwriting money talks and BULL SHIT WALKS! 1.) Do you have 20%+ down payment? 2.) After the down payment do you have at least 6 months worth of emergency fund? 3.) Do you have a side emergency fund just for the house repairs at least 2 months of income? 4.) Do you have any money in retirement plans (shows you have the ability to save) 5.) Do you have any investments - stocks, bonds, mutual fund - NOT in retirement programs? 6.) Do you have a stable job history? Exception if you have change frequently but you are achieving sizeable pay increases! 7.) Good moral character - they may check to see if you have ever had problems legally of significant in nature. Banks are interested in whether or not you have the ability to repay. Sure go and do the build credit two step dance BUT let me tell you during the next economic downturn many of these folks who are borrowing money without any assets behind them will end up in DEFAULT!

[@therealboris2020]

He recommends a 15 year mortgage and a payment not to exceed 25% of income. If you do it this way I think it has merit. Especially if you pay it off in 7-10 years anyway. If you get a 30 year and take 30 years to pay it your math might make sense. It would be interesting to find two folks with similar income that did the two options and talk about their experiences.

[@dylanbly3468]

Yeah I know you have to follow the plan as a whole not just one aspect of it. Dave had said way dumber things than how you don’t need a credit score

[@RobertBritain]

It's not good to borrow money all the time, but when you do, it's good to have good credit. On a piece of equipment, I got 0 interest because of my good credit. I wonder if Dave can put his. Head around that. I bought land that's made a lot of money.Fine asked when the credit was low and I got low interests because of good credit and made lots of money.Not everybody can have millions

[@callmeishmaelk767]

I have zero debt, two paid off houses, and have one credit card I never use...I have a 815 credit score.

[@amireallythatgrumpy6508]

I'm sorry to hear you have a credit score.

[@guillermogouldburn763]

My check account was frozen for a week because of unauthorized withdrawals. My credit card was a life saver.

[@RS-vs2lm]

Dave Ramsey is an iodit when it comes to giving credit card advice. Also, he is assocaited with Churchhill Mortgage and benefits from referring them business.

[@SheTalksFinance]

YEP ... talk about a conflict of interest.

[@Answers721]

1. I use the Coinbase debit card. 2 With rising mortgage rates, can you see a 30-year year fixed going for 10% interest soon? Especially with the Federal Reserve raising the Fed Funds Rate? 3. I recommend people have one credit card, and have a small credit limit. Normally everyone should pay in cash, but once in a while use the credit card. This gives people a credit score with 0% chance of being any more than a few hundred dollars in credit card debt. So, this would save people on a mortgage rate by having a good credit score.

[@SheTalksFinance]

Thanks for watching! I don't think I see 10% mortgage rates, but, anything is possible at this point.

[@thomaskelly3880]

Not every 1st home needs to be 1/2 million dollars. Live below your means !

[@Cdogg2233]

I'm a CPA and can't stand Dave. His advice is outdated nonsense.

[@SheTalksFinance]

It definitely gets the blood pressure rising for a number of financial professionals

[@jeromehenry4484]

Mr. Ramsey's advice isn't only outdated nonsense, many times it is intentionally misleading for the sake of making certain callers to look foolish/ignorant, and he gets higher ratings for all the drama.

[@jlogan2228]

Im laughing my ass off at how people were doing the math on how Ramseys dumbass advice on credit scores, not investing while saving and paying off debt, dropping their 401k match selling their good vehicle for a pieces of crap etc.and it COSTING them money and all daves fart sniffers are now trying to say " everyones finances are personal and you gotta make the baby steps work best with your situation" Oh HELL NO. Your boy legit tells people they are stupid if they do ANYTHING outside of his advice so you cant play that card.

[@amireallythatgrumpy6508]

His advice came from a time when people actually used to use this thing called a brain. Sadly those days are long gone.

[@yvonnebaker5174]

I called Churchill Mortgage and his help. B.s.

[@nickabbott2242]

You have to understand Dave's objectives and the nature of his audience. When you do, you understand the value of what he says.

[@jasonrodgers9063]

This woman speaks WISDOM!

[@stevenseagull9318]

Dave is not the person he alludes to be. In SO many ways. Dave is a PRIME example of someone who preaches a biblical lifestyle, while following very little of his own advice. He has ZERO humility and anyone with a brain who has watched his latest videos on the real estate market, can easily see that his arrogance + his wealth is a terrible combination for someone who should be giving advice. He's also a glorified slumlord. But he doesn't want to talk about that, right?

[@jlogan2228]

Yea dave pushes hard on mutual funds and coincidentally has that underwriter and elp service. Its like you cant exoect me to take him seriously when he says you dont need a credit score but to pay an underwriter to ESTIMATE YOUR CREDIT SCORE Or dont invest while saving money and paying debt but when you do use these things i get kick backs from Dave has built his empire off gullible people who didnt have the common sense to NOT get themselves dug into a debt hole

[@Skank_and_Gutterboy]

100%.

[@amireallythatgrumpy6508]

Anyone with a brain can easily see that nobody should live in the USA.

[@metaltera86]

I follow absolutely everything Dave Ramsey says except for their position on credit score. I never want to deal with a manual underwriting. I keep one credit card open and make a purchase once a month to maintain my credit score. Just for my next mortgage rate.

[@AK-47ISTHEWAY]

So you also chose to go see one of his "SmartVestor Pros" and get ripped off with paying high front-end sales loads/commissions? You would have been much better off investing in low-cost index funds from a company like Vanguard, Fidelity, or Charles Schwab. The likelihood that an actively managed mutual fund will continue to outperform a market index is less than 4%.

[@amireallythatgrumpy6508]

Credit scores are absurd, which is why better countries than the USA don't have them,.

[@paulpindroh9748]

Live like no one else, so later… you can live like no one else. If you owe people money… consider yourself their slave. But if you have it paid for. It’s yours. No ties. Do what you want. That’s the point. Just try it once. It’s nice being debt free!

[@luisv6229]

Nikki - love your videos - I challenge you to look up WHY credit scores became the norm. I’ll give you a hint: it was around the time where banks could no longer discriminate based race

[@brianadams6204]

The $36k over the course of 30 years is $1,200 a year which if you are paying extra on your mortgage you will not end up paying that interest anyway.

[@nvc.]

Credit score is one of the biggest scams in America. I find hilarious anytime i ear you guys talking about it. So if im good with my money, i save, have a good bank history, good job etc, im not gonna get a mortgage because i never used credit cards and instead was responsible and only payed in cash (as in not needing credit)?? It's so weird. Here banks look for people that show good money management, not that are allways in debt!

[@jesus.ramirez]

Dave is against credit and loans because he overleveraged and got burnt.

[@Duke_of_Prunes]

You mean he went bankrupt.

[@jesus.ramirez]

@@Duke_of_Prunes I couldn't remember the specifics off the top of my head and didn't want to get the details wrong. Point is, he fucked up.

[@Skank_and_Gutterboy]

@@jesus.ramirez Exactly. Nothing wrong with using those but you have to be responsible and careful.

[@daaaaaaaaniel]

Well made video! You really broke it down.

[@donaldrichey3318]

Insurance premiums are lower for people with higher credit scores Using a debit card anywhere is dumb.

[@edgar22452]

Not everyone is a goddamn millionaire like Dave ramsey lol.

[@jlogan2228]

Yea everyone who higs his nuts about i dont need a credit score or credit cards seems to forget hes worth 200 million. Dude never has to worry abt financing a major purchase ever in his life. And everyone is convinced they can just buy cheap used cars with cash and never have any sort of emergency that may require a loan in which....you guessed it....THEY CHECK YOUR CREDIT

[@edgar22452]

@@jlogan2228 Exactly! Dude will never know what it's like to work from paycheck to paycheck just to survive.

[@thebrax27]

Excellent advice! I like how you didn't pressure anyone to sub either. For that reason and with interest, I subscribed. Thank you!

[@Al_Camino77]

I wonder what Dave would say about a car purchase if the dealership offered zero percent financing, which I see them starting to do again. That might break his brain.

[@Skank_and_Gutterboy]

I bought my house in 2005 on a 30-year loan. I paid off my house in 18 years. According to Dave I did a terrible thing.

[@Bob-fy8bt]

Dave is right when it comes to reducing debt and getting yourself out of trouble, but he’s wrong about credit. Your credit rating now drives more than just debt. It also affects deposits on utilities, access to rentals, and car insurance rates. And if you need a purchasing card for your job, your employer uses that rating to assign the card to you. Further, if you travel internationally, they usually don’t accept debit cards for purchases. But you can build credit without “going into debt”. Just have a continuous bank account and pay off your credit card each month.

[@wyntresorrow403]

Some jobs won’t hire you either without a credit score or if you have. Low one because they see it as a risk

[@BirdDogey1]

Nerd Wallet says they charge more in interest and fees.

[@terrydicken7877]

I believe you are missing Dave’s point. As of the third quarter of 2024, total consumer debt in the United States was $17.943 trillion, a record high. This is an 11% increase from 2020, when the average total consumer debt was $92,727. In 2023, the average total consumer household debt was $104,215. It is a known FACT that the use of credit cards increases your spending. Even if you pay it off every month. The idea behind not taking a loan for a car is you purchase a product that loses 70% of its value in 4 years. Plus, you are paying interest for that privilege. Your example of buying a home did not follow Dave’s example for a 15-year loan, which you said yourself they get the same interest rate. If you must have a 30-year loan you should buy less house or continue to rent until you can put up a bigger down payment. Do I agree with everything Dave says? No. Do I see the reason he says what he does? Yes. Think more about the psychology of money rather than the money itself.

[@chimaerica1613]

Dave talks about credit cards the same way they tried to teach Sex ed. Abstinence doesn't work. We all know that. Don't mess up by telling yourself "I'll just never get a credit card" and not educating yourself, then find yourself needing one, or married to a partner that had credit cards before you. Know the system so you can use the system.

[@jlogan2228]

I avoided credit cards til I was in my mid 20s bc of daves advice. I finally broke down and got a few to rotate and THAT was what helped me.get out of debt more than anything bc by carrying some debt on the cards to pay for groceries gas and some.bills I could.throw more of my checks at my other debt and free up those payments and as long as I kept my cards under 1000 each the interest was very manageable. But ive seen alot of comments of other people.saying if they had stuxk to daves advice they wouldve been worse off or worse they followed his advice and lost money

[@amireallythatgrumpy6508]

Abstinence only works for people that actually have functional brains.

[@yvonnebaker5174]

Pay day lenders and other guys love cash payers. Credit used wisely is thw best wealth builder.

[@rudebwoy9203]

THEY NEED TO KNOW YOUR SITUATION BEFORE A RATE CAN BE GIVEN

[@brianadams6204]

Dave is right you can get a mortgage with out a credit score same with renting you can do that also without a credit score I know because I did.

[@joek6712]

Dave would only recommend you buy a house on a 15 year mortgage so the difference in interest rate on a 30 year doesn’t matter for people following his plan. He would also recommend having a strong foundation (good down payment although not necessarily 20% emergency fund, discipline budget, steady job and income, no consumer debt), so trying to buying a house without this foundation as you suggest is against his plan. It’s not for everyone and not a perfect plan, I disagree with him on some investing advice and responsible credit card use; however, I have seen so many people buy a house while drowning in car and credit card debt who then borrow 40k on furniture to keep up with the Jones, only to lose everything when their roof and water heater go. This seems to be a worse plan than Dave’s philosophy

[@charlesjacksoniii8787]

Good ifo, yes you need good credit to get and aparment, job, even to get a security clearance.

[@amireallythatgrumpy6508]

The only things that live in apartments are cockroaches, spiders, bedbugs and rats. They are not fit for human habitation.

[@McCov1]

How about getting a Job? Some companies run a background check and credit history.

[@SheTalksFinance]

Great point!

[@jlogan2228]

Yep......which to me proves that dave doesnt know shit about how modern credit works and his advice is based on how it was 30 years ago.

[@amireallythatgrumpy6508]

Only if you live in a backwards hellhole like the USA.

[@rbarsuex]

That industry is quite misleading and predatory.

[@hero2006]

I just subscribed. Great video and thanks for sharing.

[@Thomas-ry8xq]

Dave only recommends 15 year mortgages. He never recommends 30 year mortgages.

[@SheTalksFinance]

Yes and there could be an opportunity cost to doing that for some people. For others, if you can afford a 15 yr AND contribute enough for retirement at the same time then that’s the best way

[@angelagrant9163]

How exactly is this mortgage company going to calculate the payments???

[@WheresWaldo05]

What are your thoughts on the fang stocks right now? Which ones you think are going to dip more after next weeks earnings? I dont buy non div stocks but just curious on your thoughts. I see alot of downside potential coming.

[@SheTalksFinance]

Still liking FANG stocks - valuations are really coming in- all have room to come in more if the S&P really sells off here

[@redbullwiseman4805]

4 percent months ago? Good lord It’s 7 now for 30 year loan

[@dieselandgasoline1679]

If you pay your utility bills, your credit score will go up

[@robertohugk3273]

Sorry to disappoint you my older brother used lot credit card I remember even to buy house together the bank did not accept my brother due his past debts credits card but accept me and tell you I save the day . People use credit card are more like to ask to borrow from friends or else . Plus I manage to rent some houses without using credit card

[@afa1554]

A great credit score is what gives you buying power for a big ticket item like a home or car. One must be responsible with their money if they want to maintain good credit.

[@WheresWaldo05]

The highest my credit score was at was 823 while purchasing my home. Obviously it went down some due to taking on debt. I was told by the lady in 38 years she had only seen 1 other person higher than mine. At that time i was 31 years old. My boss the other day was trying to tell me his credit score was 850. Which is the highest you can possibly get. But from my research years ago, how i understood it, its basically impossible to get to 850. And if he is at 850 then i definitely should be as well. I've been perfect my entire life with my finances.

[@SheTalksFinance]

Good for you! Keep it up.

[@jeromehenry4484]

Age of oldest credit on your report is a big factor to getting the 850 score, around 20 years. Remember some of your past accounts can close and drop off from your history which means your history can be shortened inadvertently. Installment loans & mortgages do have a maturity date, so they will fall off someday, but credit cards can continue until your death just as long as you keep your credit cards active.

[@Mylifeonart]

I find his responses offensive. Just bc ppl are poor or less wealthy than him, doesn’t mean they’re stupid. AND I’m sure he gets paid to send people to that company

[@amireallythatgrumpy6508]

But what DOES mean they're stupid is if they live in the USA

[@Troy-nc5br]

my family sold homes in the nashville area for decades and used churchill manual and the rate was always higher dave isn't correct on this dave sells books so he will never shoot straight with you because he always sticks 2 his script just ask roy mattlock jr the inventor of daves course and helped with 1st book dave so called wrote

[@SheTalksFinance]

Yes and as I mention in my latest video- interest on a home being higher can KILL returns and affordability!

[@yvonnebaker5174]

He wants to get a franchise fee, or whatever he gets from his elps, realtors etc.

[@theglassarrow_]

The math of credit scores only work if you pay little to no interest. Its very possible to do so, I've never had a problem with paying everything on time. The moment some one doesnt pay its now a bad deal. Majority of daves callers fall into this field and not alot of wealthy people will say loans got them their money.

[@SheTalksFinance]

True... most of Dave's listeners are trying to get out of debt.. which he gives generally good advice for... but, when it comes to wealth building advice, it's not great

[@theglassarrow_]

@@SheTalksFinance I completely agree with you, but Dave isnt really about building wealth, hes about retiring at an ordinary time and income. Credit is a great tool if you use it properly but I wouldnt recommend it on anyone without getting them out of negative debt and then how to do other steps of building wealth first. One of the biggest thing is that if you get a cc stolen its way easier for it to be forgiven compared to a dc. Happened to my brother whom in an 1 hour got all his cc fixed, but the one dc took 3 days to get settled.

[@brianadams6204]

@@SheTalksFinance I Think the millions of people that he helped become millionaires would disagree with you. I Mean it worked for him he is worth 100s of millions.

[@sankalparora8146]

Very informative video - subbed!

[@SheTalksFinance]

Thanks for the sub!

[@juniper10211]

When has dave ever said buy a house with cash? Never. Morgage is the only type of debt that is okay in his eyes, the goal is to pay off your house early. Sure a 15 year morgage payments are much larger, but the idea here is if you cant afford to pay the much larger morgage, the problem here is your income. Learn more skills and work harder to increase your income.

[@juniper10211]

Cant make the morgage payments? You shouldn't be buying a house yet!

[@sethschackmann6200]

Then don’t buy a half a million dollars house. He does not say buy a house cash he says to use a 15 year fixed mortgage doing manual underwriting. Yes it’s harder but it means being in debt for only 15 years.

[@derrickyegge1303]

Talking about sus. I can't go over the phone call for legal reasons lol. Calling them sus when you act SUS as hell is straight gold. Lmao. Go back to school. You got alot to learn

[@jeremydinverno4503]

You always make sense

[@asarishepard8171]

NO ONE has enough money to buy a home with cash! You need credit to give a mortgage, dave! What is he saying??

[@amireallythatgrumpy6508]

Credit only exists in backwards hellholes like the USA. You've clearly never heard of manual underwriting. Shows how incompetent banks in the USA are.

[@Emily_CM]

The truth is: the reason the banks care about credit is that they want to trust that you are worthy of their money. The banks are NOT in deep crap. But many people are in deep crap. Dave is right 💯

[@LastSider]

10:45 Gtfo. Even DR is trying to sell you something.

[@nicrfe]

There is no good reason to have a credit score. It’s not that hard to get a mortgage without one. Don’t spend money you don’t have.

[@paulsalvaterra]

I have never heard dave say pay cash fir a home, where u get b that, ih u made it up, ok