Why Not Use Credit Cards?

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[@SammySam316]

You're right, Credit Cards is really a nightmare for broke people. Sadly broke people spend more. (speaking from experience).

[@sjradical]

spending using credit card is like spending your future income for present needs. that's why your always behind and in debt.

[@blackworldtraveler3711]

Sarahj Apostol Maybe for you it is. My take home pay is almost $8k a month and my total household expenses including personal property tax and home/car insurance is $1200/mo. on a $1500 a month budget. Paid off my home years ago so no mortgage. So my money goes to retirement/regular savings and investments. My debt to income ratio is less than 2%.

[@hihibunnie]

I used a credit card straight out of high school because it was easier to pay $200 for books and pay like $20 a month instead of waiting for $200

[@suckmyass7368]

@@blackworldtraveler3711 Most of us make less than $4000 a month.

[@samplautz5586]

If you spend a credit card the same as debit card, I don't see the problem. You only spend the money you know you have

[@aeromedical6750]

@Sam Plautz - well genius, the vast majority of people DON’T use a credit card like they would a debit card which is Dave’s point. Most people use credit cards because they want something right now that they don’t have the actual cash to pay for. I haven’t used a credit card in almost 10 years. Using my debit card cause me to actually think about what I buy. If I can’t comfortably pay cash for something, then I don’t buy it. Guess what - I have ZERO debt and almost $100K in savings.

[@ChrisMFlorida]

He's right.. I agree with him on spending more with a credit card. Paying with a debit card you know that money is going to come right out of your checking/savings, vs a credit card you can "pay later".

[@crammit6601]

gift cards are nice too. no way to over spend on a gift card.

[@missbehelpful]

Regardless of when it comes out of your account though, it is still your money coming out of the same account. If you don't have it, you just shouldn't spend it. This speaks to a problem with self-control that so many Americans have, which we never learn to deal with if we run away from it by avoiding credit cards. I understand his point, but there are people out there (primarily in underserved communities) who for many reasons, only have $500 in their account and it is very helpful to use the credit card and then pay it later. He is acting like poverty is a choice and he was super rude to this dude calling. Oh Dave.

[@crammit6601]

MissBeHelpful You obviously don't listen to Dave. Poverty is in fact a choice for most people. And the last people in the world who should be using those cards are poor people.

[@missbehelpful]

+Crammit there's room to think outside the box - I grew up poor and a child of immigrants who knew nothing about credit cards, but I educated myself on it and have been able to accomplish things I never would have accomplished otherwise and lots of it was because of my credit cards. I've traveled and gained many rewards just for paying my bills and buying my necessities with credit cards. I use credit responsibly so I have zero debt today and I'm still young. It's all about education and self-control.

[@crammit6601]

MissBeHelpful Except that in modern society credit cards are the norm so you're really not thinking outside of the box. The benefits that you get from your credit card don't out weigh the negatives. It's much easier to play the bank's game rather than create your own financial structure.

[@jacked6]

The caller's biggest problem is having only $500 in his account.

[@masterchief8855]

Yep!

[@ThePeterDislikeShow]

You could have $50,000 in your account and have $50,000 stolen too. Same deal.

[@mikenelson8377]

FortNikitaBullion no. You can't Math but that's okay. We all have our strengths and weaknesses.

[@TheSincereb11]

Only $500? Thats more then alot of people have at the end of the month

[@apollooff320]

Credit cards just don't work for the majority of ppl. Even rich ppl get into trouble with them. But being smart and having self control can save u from getting in to trouble with them and a lot of ppl don't have self control.

[@crammit6601]

It's not about self control when you don't have enough to eat.

[@samplautz5586]

Rich people spend only what they have. Poor people spend more than what they have to appear rich, causing them to fall into a pit of debt that they are unable to get out of

[@smittyboy]

So true! I learned the hard way. And his mute button is EPIC.

[@rayn1ful]

The line about the airline miles and bonus points (no millionaire got to be a millionaire on airline miles), that line cracks me up every time, its true yet people seem to swallow that garbage hook line and sinker.

[@merc7paul]

LOL stop arguing with Ramsay, he's made his point about credit cards, if you still want to use credit card use it without trying to convince other people, stop wasting your time and Ramsay's time

[@merc7paul]

yeah I love my credit card, nothing will stop me from using them. credit cards are same as money it's neither good nor evil as ramsay says, it's up to the user

[@crammit6601]

Credit Cards love you too, they love to keep you poor.

[@merc7paul]

My net worth is over 6 figures, i'm 26 with no debt, my credit cards pay me cash back though it doesn't make me rich, as dave ramsay would say

[@mac1bc]

+Sukun Paul lol true. and then people wonder why they don't get a good rate on their mortgage or have to pay more for an apartment deposit, when they have no credit history. until you can pay cash for everything, good credit is king.

[@crammit6601]

mac1bc What's wrong with not getting a good rate or having to pay more on an apartment deposit?

[@pinaopina]

You have many more chances to get in trouble using credit cards every month than someone committing fraud on you debit cards 1 or 2 times in your life. It's that simple. 😒😒

[@mac1bc]

most credit cards have fraud protection, so that you are not liable for fraudulent charges.

[@mac1bc]

most credit cards have fraud protection, so that you are not liable for fraudulent charges.

[@ilovetheseventies6461]

I thought I was the only one with no credit card all my friends look at me and say I'm crazy

[@flavah5o3]

Dave rocks!

[@adamwalker2377]

You could just keep track of your spending and reserve the funds in your account to pay off the card. Excel isn't a mystery.

[@bethanyh1637]

I don't fully agree with Dave on credit cards. I view them as a tool that's only good or bad depending on how its used. However, if you can't keep them payed off EVERY month... get rid of them. Unfortunately... that's most people.

[@coolguy298]

Bethany using credit card is like taking debt from banks. It's fine to use it when needed. Using it for multiple purchases puts you on risk. You may forget payment on time due personal reasons, you may have overspent etc.

[@BiggSneaddd]

Of course you don't agree, ur broke and Dave's MILLIONAIRE....Dave says it all the time that BROKE PEOPLE won't listen to the people that have won...

[@ominous450]

The purpose of a credit card is to build credit. It shows lenders that you're responsible with your money (ie. you pay your bills on time, you keep a budget, you don't spend more than you can afford). If you're not good with your money then don't get a credit card.

[@Txcowboy80]

most people listening to dave don't have good credit and are in debt. I'm guessing rich people don't listen to dave very much because they don't live paycheck to paycheck.

[@introvertdude99]

Why would you need someone to lend you money though. If you don’t have the cash don’t buy it,simple

[@drunclecookie216]

I get Dave is completely against credit cards.... but I don't see the problem if you use them responsibly, pay off the balance every month, and collect the rewards they offer... I have a card I use strictly for gas and it gives me 3% cash back for every purchase... with the amount I have to drive for work by the end of the year I usually have $200-$300 in cash rewards that I can either cash in, or let it continue to grow... that's basically a discount I'm getting because I have to purchase gas anyway or I can't get to work.

[@drunclecookie216]

when I use my credit card for shopping I set a spending limit on it... say I allow myself $1000 in spending money and groceries per month, once I put that amount on the card that month I shut my spending off, then pay off the balance when the bill comes. When I withdraw cash I write that money down in my checkbook as being gone and I usually blow through it really fast, but with my credit card I consider every time I swipe it as building up a monthly bill that I have to pay. But either way, I am getting rewards for the card and not for cash... granted it's not gonna make me a millionaire but I consider it a perk, I'm not spending as much this way

[@Txcowboy80]

seems like a lot of work for $300 a year.

[@drunclecookie216]

it's actually less work than withdrawing cash from the bank every time I need it.... or paying atm fees if I have to withdraw out of town

[@youaregoingtolovethis]

Johnny How is it a lot of work compared to a debit card? No difference you both swiped the card the same way. No extra work required. It happens all into the background and get credited to your account. Three hundred dollars is three hundred dollars. Plus that is just for him. Some can save in the thousands. Nobody is saying you have to use a credit card. You want to use debit be my guess. The rest of us responsible smart well informed credit cards users will continue to benefit from our credit card usage. We just thought of offering and sharing some helpful insights to possible benefits debit cards users may not be aware of and missing out on. The choice is yours nobody cares ultimately what you decide to do with your life and money.

[@blackworldtraveler3711]

Ryan Cook I use my credit card weekly for gas and groceries so I just auto pay to my credit card account weekly and keep a balance in my account like a debit card.

[@Jose-lc6nj]

I'm 16000 in credit card debt Don’t follow my example

[@BruceLee-zj5jf]

How ????

[@Jose-lc6nj]

Bruce Lee online gambling

[@FinanceConsumer]

dave ramsey all you did with a credit card is paid a bill with high interest and secret fees

[@user-um7tw6kx4r6]

I like this man he's very calm and presents his point to idiots in an intelligent way.

[@acceleration1146]

People have savings in separate account and don't worry about your stolen card while sorting the problem with stolen cart use savings

[@johnd9279]

I'm gonna go out on a limb and say that most millionaires actually do use credit cards.

[@danroberts7975]

The guy on the phone is talking about the dispute process...which does not guarantee the credit card company rules in your favor. The credit card company takes pretty much as long as a normal checking account bank to clear it from your statement also (in my experience). Banks are very good at Got-cha tactics. Fees that blindside you when you are most vulnerable. If you don't watch your credit card like a hawk and make payments on time they will bend you over, and smile while they do it. THAT along with not paying off your balance I think is why Dave is always hounding on credit cards being a bad idea.

[@lVlegabyte]

Yes, it takes just as long for it to clear your credit statement but you can still go to your bank and get your cash to use for transactions or use paper checks until the CC dispute is cleared. In debit card world, if the fraudster spent all your cash - you've got nothing in the bank to withdraw.

[@randienichols5191]

+lVlegabyte if your worried about fraud draining your account of every dime you have (which is not likely if you are budgeting daily and also have a full emergency fund) then keep one credit card and freeze it and only use it IF every dime to your name was stolen. But why would you want to play with the temptation just because of the .01% chance your bank account is drained of money by fraud. (assuming you have 3-6 month emergency fund which is most likely >$10,000) i know my bank alerts me if there are any suspicious transactions immediately...so i doubt that would ever be possible.

[@jvolstad]

It's better just to learn self-control when using credit cards. That means your balance is paid in full each month. If you can't do that, then you need to cut back on your spending. I travel in my business and use my credit card all the time. Airfare, rental car, hotel, etc. I get various benefits from using the card. Never, however, carry a balance beyond 30-days.

[@denialater7775]

don't step on the snek

[@Gta4Life2003]

That's sad because Dave doesn't know

[@MrBrewman95]

Don't spend money you don't have. Crazy radical idea right? I plan on having one and buying only a pack a tic tacs once a month.

[@workingshlub8861]

cash only..credit card for extreme emergency only.

[@sjradical]

credit card is good for Balance transfer. inorder to pay the debts in credit card and ur paying a high interest. apply for card that has 0% interest of 21 mos for both balance transfer and purchases.that will help you little bit so that you will not be behind until you're paid with the balance

[@shawnakay9013]

Don't think Dave would agree. I did this and I must say it takes insane self control to stick to it.

[@sjradical]

+Shawna Kay true. I never have a credit card.its risky.. that was just a suggestion if someone s really behind and paying a high interest.pay off cc debt and get away forever from it. I witness everyday how cc ruin lives.

[@1994thakoolkid]

Would you recommend using one credit card while maintaining low credit utilization? Let’s say the number is 15% and you only use the card to purchase gas. Could this improve my score from 660 while establishing my credit history?

[@thevibe7415]

it could but theres 4 factors on how your credit score is rated....mHes pretty much on point BUT some apartments do request for a credit check HOWEVER I have $15,000 cash in my bank account and they didnt care about my credit......Soo yeah One thing i learned as i actually built my own cedit.....is that you HAVE TO get into a little bit of debt each month for the credit bureaus algorithm to bring up your score...all that means is that if you leave a small amount to collect interest every month,you will actully get more credit card offers,a higher limit and every payday mailer..defiently stay away from the lenders.........So anyway, you will pay your minimum every month and that will also reflect in your score...........If anything use cash back c.c for gas and leave it at home in a safe.......I would say build your credit but pay it off every month......Thats just going to kerp your score at a average number which is what you need if you join the military or want to rent an apartment

[@KittyOzzyZiggy3895]

Credit cards are a form of a hamster on a wheel debt

[@Reheapification]

but not all snakes are dangerous.

[@sidharthchand8072]

Can you use debit card with uber/Lyft

[@cassandrabergquist8715]

Yes I do all the time

[@blackworldtraveler3711]

sidharth chand I use my credit card.

[@derekromanchuk]

Yes. Get a visa debit card

[@suckmyass7368]

Prepaid Uber balance in the app

[@jcrowley1985]

I put my $30 internet bill on credit every month and every month I pay it off in full. Have not payed one penny of interest or fees to the banks. That is $30 I would have had to pay anyway and by using credit I have been able to establish a 760+ credit score. A score I can use if I ever try to get a loan to get into real estate investments for rental properties. A loan that would be much harder to get and with worse terms if I had no credit score. Try to debunk that reason to not use a credit card for that ONE reason.

[@danroberts7975]

That's a pretty easy one... Dave Ramsey encourages people not to borrow money at all...so a credit score isn't really relevant in what he teaches. If you can control yourself with a credit card that is wonderful! Unfortunately there are many that can't... Those are people that rack up a bunch of debt at crazy interest rates...then complain that they can't make ends meet because of payments. So maybe this stuff won't apply to you but it sure has helped people like me.

[@jcrowley1985]

I guess if you can control yourself enough to not use a credit card for anything other than the one designated bill then it's ok then. Or in my case, I have my one small bill on autopay and cut up the physical card. No card, no impulse to use it.

[@crammit6601]

Have you ever thought about just pre-paying the internet bill instead of using the credit card?

[@jcrowley1985]

I have the bill on the credit card and I have my checking account autopay my credit card off every month. The reason for the middleman is because of the importance of having a credit score. Everythings on automatic so I don't even have to think about it, I cut up the physical card so I'm not tempted to use it, and I understand the importance of having a credit score if I ever do need a loan for a house or apartment or such.

[@crammit6601]

jcrowley1985 I prefer to pay all of my bills manually that way I'm more aware of where my money is going. If it's automatic than you're less aware of it. Just like few people are aware of how much tax is being taken out of their check.

[@grantmcloughlin9460]

Maybe I like to use only for rental cars with cdw coverage.

[@crammit6601]

don't rent a car

[@Retro_Fan]

Credit cards are just like guns. They are merely objects and up to the respective owners to use them responsibly. I find it ironic that Ramsey is so pro gun and yet so anti credit card. As long as you use the tool responsibly and pay your debt in full monthly, I see no issue. It establishes a line of credit and shows you are responsible using that line of credit. I use my credit card to pay the utilities on the house and cell phone and pay them off in full when due. What is the issue with that?

[@shafserious2805]

Stop using zionist card and use a debit card!

[@blackworldtraveler3711]

I'm not a Jew but had sense enough to buy several thousand shares of MasterCard and Visa back when they were single digits. And have been using my credit card like a debit card for over 30 years with no issues. So I guess there are Zionist, smart people like me, and a bunch of dummies.

[@lagflag]

Not because some people have a spending issue when using a credit card, that should be generalized. hundreds of thousands of people do not have a spending issue and mature enough to recognize that it is real money. I personally have a budget, every transaction being recorded in a software, I know how much I owe on a daily basis and pay it off the next day (not even waiting for the statement). When spend, I don't spend based on any account or cash balance that I have, I rather look to my budget category balance and spend from that single category balance (which reconcile with the money I have at the banks anyways, so I never go overdraft or in debt). So I can never overspend the real cash I have. I invest heavily, and soon will not be a middle class. My net worth graph are going up because I spend way less than I earn, again it is budgeting and saving for anything one can think of in a separate category. Dave, some people are MATURE ENOUGH, and know how to handle a credit card.