Can I Have a Credit Card if I'm Responsible?

Can I Have a Credit Card if I'm Responsible?
Say goodbye to debt forever. Start Ramsey+ for free: bit.ly/35ufR1q
Visit the Dave Ramsey store today for resources to help you take control of your money! goo.gl/gEv6Tj
Did you miss the latest Ramsey Show episode? Don’t worry-we’ve got you covered! Get all the highlights you missed plus some of the best moments from the show. Watch debt-free screams, Dave Rants, guest interviews, and more!
Want to watch FULL episodes of The Ramsey Show? Make sure to go to The Ramsey Show (Full Episodes) at: www.youtube.co...
Check out the show at 4pm EST Monday-Friday or anytime on demand. Dave Ramsey and his co-hosts talking about money, careers, relationships, and how they impact your life. Tune in to The Ramsey Show and experience one of the most popular talk radio shows in the country!
Ramsey Network (Subscribe Now!)
• The Ramsey Show (Highlights):
www.youtube.co...
• The Ramsey Show (Full Episodes): www.youtube.co...
• The Dr. John Delony Show: www.youtube.co...
• The Rachel Cruze Show: www.youtube.co...
• Anthony ONeal: www.youtube.co...
• The Ken Coleman Show: www.youtube.co...
• The Christy Wright Show: www.youtube.co...
• EntreLeadership: www.youtube.co...

[@bigd9040]

Would of been funny if when Dave asked Ken how long it's been since he had a credit card he said he still had one lol 🤣

[@666dynomax]

I bet it's a pre req with Ramsey

[@richardguthrie3422]

He would get fired.

[@chrisreynolds6391]

If he was that dumb no way he'd be winning on the points.

[@deepinurmom8159]

He probably does. This guy is waiting for Dave to say jump so he can say how high

[@jester556]

@@richardguthrie3422 😂😂

[@wtk6069]

At the end of the day, it's about mindset. If you truly embrace Dave's philosophy, debt, any debt, becomes not an option. Even paying it off in 30 days. I love the sense of peace his approach brings. That feeling is worth more than a credit card.

[@gamerji-li4755]

But saving up to buy a house in cash could take forever lol and manual underwriting sounds tedious.

[@gamerji-li4755]

@@lmnop01 Yeah the manual underwriting, which is not offered everywhere. I read a lot about it and also read people trying it and struggling to get a good mortgage rate with it. I might be the type to save up to buy a house in cash because I hate the idea of getting back into any debt even a mortgage, but definitely not the route for everyone and I still build my credit score for mortgage option if we see a good house deal in the next couple years.

[@marcdonvito6485]

Every banker will tell you that any money owed for less than 30 days is not considered a debt. It is considered a bill, or expense. Only after 30 days have passed is it considered a debt.

[@gamerji-li4755]

@@lmnop01 It probably can just feel same as not paying a utility or medical bill immediately after getting the statement. Though personally for both cc and utility/medical bills I prefer to pay immediately and don't generally wait until the due date.

[@BlueDauntless]

@@gamerji-li4755It doesn’t sound anymore tedious than the regular process.

[@superbros1690]

Credit card is not the problem, it’s the person. Don’t blame the gun, blame the one that shoots it.

[@bw550]

100% agreed

[@montsombreSE]

Guns and credit cards are alike in that they often fall into the wrong hands

[@jamesjazzy8040]

Guns kill people people don’t kill people. You can’t stab 58 people and kill them like in Las Vegas you could stab and kill one person and then you would be tackled and beaten....

[@allpraisegoddessmonika2887]

@@jamesjazzy8040 Objectively false.

[@aquafishsoup]

So 99% of people are the problem.

[@db2631]

Credit card gives you 60 days opposed to 30 days to dispute a charge, plus money does not come directly out of your account if it has been compromised. I agree with the caller's question, if disciplined not an issue.

[@joshsmith5784]

^^^YES, this is correct. Credit is superior in these ways.

[@lehawk100]

@@joshsmith5784 2/3rds of people default on their credit cards and im sure most of those people thought they would be responsible.

[@jollama]

@@lehawk100Good, those 2/3 can subsidize my free stuff

[@cutlerylover]

Dave is a millionaire, and he forgets not everyone is trying to become a millionaire, many of us just want to be financially secure and that means different things to different people...As we know from the comments on this show hundreds of people use credit cards and have wealth...so that data does NOT apply to the average person...His advice IS good for people who need to watch his videos because they dont know how to handle money and lack control...

[@SimonSaysyo]

Well put, I agree 100%.

[@BiggSneaddd]

Well that sounds pretty stupid and dumb at the same time. If you're not trying to become wealthy or a millionaire why are you watching his videos? Just to make negative comments and go against what he teaches doesn't make sense to watch somebody videos. I don't watch people videos that I can't learn from plain and simple.

[@BiggSneaddd]

@Tdb b Are you talking to me? Arecu saying you was about to say what i said?

[@cutlerylover]

@@BiggSneaddd There is always room to learn no matter how intelligent a person is or how much of an expert they are on the subject....I feel like Dave has 3 types of viewers, poor people who dont know why they are poor, well off people who like to see why others struggle, and lastly people like me who know whats up but would like to learn more things by hearing about others mistakes so I can avoid them myself...I grew up with parents that didnt handle money well at all and it made me Hyperfocused on finances as an adult...Some watch to learn others watch for entertainment...I watch because I learn from others mistakes its how I got on the right path to begin with, I also do enjoy Daves advice I comment on occasion when I disagree with what he may say or want to give a different view point...Dave has been doing this a LOOOOONG time do you think he can still relate with poor people? Or do you think he just repeating the same advice that worked decades ago? Times change and even the best advice may need tweaking to the current times...Wanting financial security means making more money and spending less at the same time and sure we would all like to be millionaires but many dont see it that way like they are "trying to become a millionaire" Also Dave is a millionaire because others cant figure out spending more than they make is a bad idea...It always reminds me of when the dentists tells you to take care of your teeth sure its great advice but if everyone did it they would make less money and have less patients..

[@cutlerylover]

@@BiggSneaddd they replied to me not you but they may have done it by mistake not everyone knows how the comment section works...

[@nvasudeva]

But the caller is not saying that he will become a millionaire using credit card points. He is simply implying that he can earn extra 5% or so.

[@mattcollins4550]

Exactly. Dave sidesteps the question

[@smileychess]

Yeah, I’ve always found that argument to be extremely disingenuous. That being said his general advice is good for 99% of people, and if you follow it it can’t hurt.

[@Musicalogist]

Exactly. Maybe those millionaires won't say they became wealthy because of their use of credit card, but that doesn't mean they don't use one, and I would bet that they do. That argument is a handwave. That being said, most people who think they're disciplined, aren't

[@CallMeSlavik]

@@mattcollins4550 I don’t think he sidestepped. The answer seemed clear. Credit cards CAN work. Dave’s method WILL work. It’s a no risk theory.

[@duanejackson6718]

If the guy was good at managing finances he wouldn't be calling the Dave Ramsey show for advice.

[@richardkilley6838]

A credit card is like a chainsaw, if used properly it is a very good tool and great at what it does but use it irresponsibly you are going to lose something!

[@williamturner6192]

Agreed, some people do pull it off. Most don't and Dave is talking to 'most'. You're more likely to pull it off if already debt free.

[@markm.4924]

That's a poor analogy. So, if the data showed that there was a very high injury risk with chainsaws, and there was a tool that had greater success at getting the job done with less risk for injury, you'd still recommend the chainsaw? Hmm your logic is off here.

[@commonsense-og1gz]

@@markm.4924 name a greater tool.

[@gambitgambitgambit]

Great analogy

[@akwinas_a_o]

The answer is yes you can, but not according to Dave’s system. If you know how to manage one and how to calculate risk and reward go for it. But Dave is not going to tell you it’s okay.

[@sumobowler3790]

anyone who thinks only financially irresponsible and undisciplined people get into trouble with credit cards, and no argument from me those people exist, is someone who has zero real life real world experience

[@akwinas_a_o]

@@sumobowler3790 These two can exist independently of each other. Debt can be a very good thing; credit cards can be good. It has to do with your level of responsibility and if you’re one of the 80% who can’t manage debt you probably shouldn’t have one.

[@sumobowler3790]

@@akwinas_a_o again, responsible people often get into trouble with credit cards. this is because life happens and the credit card companies purposefully setting traps and obfuscating escapes. "debt can be a very good thing." WHAAAAAAAAAAAAAAT!? debt is financial cancer!! saying there is good debt is like saying there is good cancer

[@akwinas_a_o]

@@sumobowler3790 Two different philosophies my friend. If you were to take an absolutist Ramsey approach, there’s no doubt you’d come out ahead...in a conservative way...most likely with a little less money than you would if you leveraged debt appropriately. It’s just a matter of risk tolerance and self control.

[@Jay-py1ow]

@@sumobowler3790 I see what you’re saying but it’s not a one shoe fits all type of thing, that narrative gets on my nerves..don’t blame people that know how to leverage smaller debts to make more money especially in real estate. You and people like Dave are speaking to the 80% that are financially dumb and therefore have to follow his advice to a T. If you want to enjoy wealth when you’re 60-80 and retired then follow that, but if you don’t mind a little risk and want to enjoy some wealth in your younger years when you truly feel alive then you have to make other calculated decisions and investments that consist of a little debt from time to time.

[@bristian6467]

The simple answer is yes, not everyone in this world has 0 control of their spending🤦🏽‍♂️

[@milesmeralis5334]

Broke alert!!!

[@joelkimbell]

@@milesmeralis5334 it’s called budgeting. if you follow a strict budget there is zero difference to using a credit card & a debit card except for the fact that you get cash back on the credit card, build credit, & have protection from fraud. not everyone who uses a credit card is a broke fool.

[@IreneZGoodman]

Yup

[@Th3UMPC]

I’ve been doing this for many years. Much respect for Dave but he’s wrong about this.

[@bristian6467]

@@milesmeralis5334 i can assure you that if you have a credit card it doesn’t mean you’re broke💀

[@hollyb6885]

A disciplined person can certainly use a credit card. I’ve used them for years, never paid interest or fees. The cash back isn’t the only way I became an everyday millionaire but every little bit helped.

[@DescubreConYunis]

Plus all the benefits and security you get. My debit card got stolen and it was a nightmare. Weeks to get the money back. My CC got stolen and no issues. My money was still intact in my account.

[@cultwolf341]

credit cards are way better than debit cards if just person knows how to use them

[@jeffwvu4602]

If you follow the baby steps, you should've had an emergency fund, so you shouldn't have been desperately waiting to be reimbursed by the bank.

[@ranger2316]

@@cultwolf341 absolutely.

[@DescubreConYunis]

@@jeffwvu4602 unless they empty your account day before your mortgage payment then get declined because the was no funds. Sorry but EF won't help you there. Also if you have your EF in the same bank you giving them access with debit card.

[@katelynozdemir7536]

No one is trying to get rich on the credit card. They use it to pay their monthly expenses, pay it off each month and after a year they have enough points to go on a free vacation which is huge to a middle class family. I'm in baby step 7 and still have my one credit card to do just that. If you are responsible enough to not use it to make stupid purchases, then keep it.

[@gamerji-li4755]

@WeWhoAre AboutTODie Why does it matter if one or both of them are working in a household? Financial planning and execution for a family is a team effort. I'm the breadwinner in my family, but my husband still has to be aware and do his part to make sure we stay on track.

[@katelynozdemir7536]

@@gamerji-li4755 Thank you!!! Jesus Christ people are sick. Not that it matters but I work and have my own career. Also completely irrelevant to my comment about having a credit card vs not having one.

[@gamerji-li4755]

@@katelynozdemir7536 Yep, you can use cc on normal planned expenses like groceries, gas, etc. and then get cashback and use it as you said for vacations, or if you are staying at home, you can use it for gifts for the family or add to your savings if you don't want to spend it. Personally, I love to buy books with the points for me and my child to enjoy at home this year since we're home so much because I was forced to work from home since beginning of this pandemic. Btw, congrats on getting to Baby Step 7, I'm currently working on building our FFEF for BS3.

[@katelynozdemir7536]

@@gamerji-li4755 exactly, those are all great way to save money with points. I think the reason Dave is so adamant about the CC is because he knows most people just don’t have the self discipline to be responsible haha but I’ve lived my whole life very frugally and debt free before I ever even heard of Dave Ramsey, so I know I can trust myself with a CC. And thanks! We will finish pretty soon hopefully! Congrats to you in being debt free too 🎉

[@bw550]

You nailed it in your first sentence. I know I won't get rich with my credit card rewards. Dave continuously says he has never met a millionaire who became rich from it. Have any of them ever said they were trying to?? Some of us are just looking for extra perks when buying things we already budget for and were going to buy anyway.

[@RyanBrosnahan]

We surveyed 10 million millionaires and not a single on of them became a millionaire by using coupons at the grocery store. None of them thought coupons would make them rich. Now you do what you want to do, but I know coupons don't make you rich so I don't use them.

[@supplehons4662]

🤣

[@da11king]

Great comment 😂

[@Ryan_DeWitt]

Well, maybe I'm odd but I use my cc for everything and 100% of the time, no exceptions I pay it off every two weeks and have for years. This is the one thing I disagree with Dave on, but I understand why he is so strongly against it. He knows how many people are horrible with it and he can't give any leeway at all. For example I have a chase amazon cc. I do a lot of my purchases on amazon and it is 5% back. No I do not have the strawman argument belief that this will make me rich in any way. However I buy many of my essential purchases off there and that 5% while not much, does add up vs me using my debt card for the same thing.

[@DebtFreeDad]

It's just depends on who's responsible.

[@BlueDauntless]

It’s not a strawman. His answers will always reflect behavior and to build wealth. So CC’s build wealth, no. That’s the answer. He has more than one reason why he thinks they’re bad, but people only focus on one.

[@crono1357]

Dave’s one shoe fits all theory doesn’t work here.

[@a1cwillette]

I think you're even MORE likely to spend more if you know you get 5% back...you think everything is on sale then and that's why the CC companies do it.

[@crono1357]

@@a1cwillette I agree with what you said but the caller did repeatedly mention that he’s responsible with money and always makes his payments. When I get a new credit card I don’t even look at the apr cuz I’ve always paid off my cards in full monthly and haven’t paid a single dollar in interest. The travel points I’ve earned has paid for international flights and hotels. All I’m saying is that if you are financially responsible, it doesn’t make sense not to use a credit card with good benefits.

[@alexc5369]

@@crono1357 you can still overspend and pay it off every month.. if you can genuinely say you were going to travel on flights and go to hotels etc without a credit card, then that's fine, but I think the only reason you are able to travel is because of your credit card points... This means your spending extra on ubers, eating out etc that comes with ring away from home.. over a 10yr period, once the dust settles, you'd probs be in the red once accounting for all these things, which are extremely hard to track over that period of time.

[@josephjackson2599]

I agree

[@jarrettpierce5626]

It does and it doesn’t, he’s right that in no way does it contributes to any real wealth, wrong that it will likely harm someone like this caller

[@dynamicwellness33]

Out of all those millionaires who Dave interviewed, I wonder how many use a credit card question? I would guess the majority, and they paid off every month. My credit card points pay for my families vacations every year. Not one dollar out of my pocket go to pay towards my vacation. Thank you credit card companies!

[@jeffyeager4045]

Welp normally people buy shit they can't afford wake up and are in debt dude

[@mxerb5912]

No different than a debit card for me. Better protection too

[@dquad]

No different protection.

[@koreypaul6698]

@@dquad Please explain..

[@wiseinvestments5134]

@@koreypaul6698 a debit card takes money out of your account instantly and pays the vendor instantly too, even if they’re a fraud. A credit card takes a few days to process and won’t let a fraudulent vendor get paid until it processed fully. If you catch fraud with a credit card, you can have the charge halted and it won’t ever process versus a debt card where you have to get the bank to pay you back because the vendor actually received the money.

[@bastionwolf]

Exactly, I do it for the protection and the perks even if I don't spend on it I love the perks 😂

[@bloomingale7868]

@@wiseinvestments5134 not true...CC companies require the transaction to post first before you can dispute it. They won’t hold or dispute a pending transaction. However, the fraud protection of a CC does provide a barrier between the available cash flow in your bank account during the dispute process. But the dispute process of debit and credit cards are the same.

[@tic8259]

Just the other day on Chris Hogan's show ("Tired of living paycheck to paycheck" @7:40) he said that 96% of the everyday millionaires they surveyed for his book said they never kept a balance on their credit cards. So there is your answer, yes you can have them if you are disciplined and have self-control.

[@erikrohr4396]

So everyday millions do have credits cards. Interesting to know what the study actually said. Dave said none of the everyday milionaires claimed to make all their money from credit card rewards, which of course is completely irrelevant.

[@tic8259]

@@erikrohr4396 Yes they do! I was suprised! Hogan did not claim they made money from the rewards offered by the credit cards however. I just found it interesting that these millionaires had credit but are seemingly good stewards of their credit.

[@abrahamflores2566]

Exactly! I actually never met a millionaire without a credit card. You need a credit score to save money long term

[@tic8259]

@@abrahamflores2566 good to know. I've never met one I don't think lol

[@supplehons4662]

@@erikrohr4396 It's more like 95% or more of millionaires use credit cards.

[@Michael-vf2mw]

Answer: Yes you can, but no, you shouldn't ask Dave about it.

[@HamiltonRb]

The thought that a 31 year old man has to call a radio station to get permission to use his card when he is responsible is so laughable

[@HamiltonRb]

@Mitch Mitchelson I think the key word there is adult, and advise is different than permission.

[@squeaky2384]

@Mitch Mitchelson or maybe, just maybe, he has seen irresponsible friends/family get themselves into credit card debt. With that being his only experience around credit, he doesn’t want the same thing to happen to him. Or maybe something else. You can’t assume stuff about people just from a tiny slice of their life

[@supplehons4662]

@@HamiltonRb You are so right! 🤣😂🤣

[@spythe]

You're a grown man I use a cc for everything Especially my business In 2 years, I've received 14k in cash back tax free It's free money if you have discipline Only failed to pay once which cost me 120 in interest for carrying a balance

[@ModernRelic69]

1980-2020 - $7000 per year invested in US stock market leaves you with $6.6 million!

[@lography6917]

Some people should absolutely not have credit cards. They ruined my parents. However, I have one for gas which automatically got me $25 off gas, gives me more petro points, gives me more air-miles, there's no annual fee, gives me annual cashback, saves me 3 cents per litre off-gas, and I can use the Petro points to get another 5 cents off per litre. Dave says "not a single one said I made all my money with my credit card points". Well, no kidding, that's a facetious statement, you'd have to spend billions on credit cards to make a million. Ask how many HAVE credit cards and you'll be surprised. Most millionaires do in fact have credit cards, a lot of them used them to build credit to get lower interest rates on real estate investments, so they can, in fact, make you wealthy and they travel first-class for free because of them, Kevin O'Leary has like 35 credit cards. Sure, you can overspend with credit cards, I agree and it's less "painful". But I never pay interest, ever & I don't "overdrive", I fill my tank so it's a fixed amount. I open my bank app and pay it off before I leave the station. If I am on a budget and I can save $5-10 per fill up, then I'm going to do that. Again, a vast majority of people especially people in their 50s right now, shouldn't have cards because they were brought up as victims of target marketing without realizing how bad credit cards can be when you buy things you cannot immediately afford, and a lot of their children may not have learned from their mistakes. But that doesn't mean no one can ever use them.

[@edythesandefur1298]

totally agree!

[@rickw3243]

You are correct! Dave is making a straw man argument. No one is saying you will get rich using a credit card, but I get the benefits & never pay interest.

[@chimchu3232]

I agree as well. I've had a cash back card for a year now, pay it off every week, never once been charged interest or a fee, and I've got 450 dollars back free and clear. Not only that, but my credit score went up 100 points. If you're financially responsible and budget, you won't have any problem using a credit card

[@ugabuga1361]

@@chimchu3232 you got 450 dollars for the year. ? Playing with snakes to make 500 a year? Dude that doesn’t sound good

[@rdb0819]

The bottom line is Dave is not going tell someone on his platform, “there are some exceptions to the rules when using credit cards”. It’s not worth jeopardizing his integrity for 1 person who claims to be disciplined.

[@adamp9377]

Dave sounded like a fool for the first 5 minutes. The caller didn't think he was going to become a millionaire from his points, it's just a little bonus. I do agree with Dave about the psychology of having a credit card, even if pay it off. You will spend less if you pay in cash. I think he should have led with that, and not bring up his own little study.

[@Sizukun1]

He even mentions he has millionaire friends who pay it off and earn the rewards, then defaults back to "well they're smart and know they're not not getting ahead with points". The caller wasn't asking if cashback was a good investment strategy or anything stupid...

[@markg999]

I spend less with a credit card cause I think of the payment owed at end of the month. Cash is easier to spend for me. So for me I prefer the cc and I'm in baby step 7.

[@MrJakrab]

Some people do fine with credit cards lol Dave's just strict

[@jeffwvu4602]

A large majority of people don't. They don't pay off their balance every month and there are many who PLANNED to pay off their balance every month but they didn't.

[@jeffwvu4602]

Why shouldn't he be strict about it? The average household has $5,700 in credit card debt. He's had people call him for decades crying about their credit card debt and they have debt collectors calling them or they're being sued.

[@wannabecarguy]

I was doing great. Then my customers were hit by the lock downs. Orders were cancelled and I was buying material with the CC. It's an illusion and they can get anyone in trouble.

[@machintelligence]

Credit cards also have the bank on your side if you have a dispute with the merchant. The points and rebates are just icing on the cake.

[@andrewpagan]

@@jeffwvu4602 a large majority of people are irresponsible and shouldn't have a credit card, but if you're responsible you can have one. I have never paid a late fee in the 8 years I've had credit cards

[@stephenshelton4267]

I'm curious; how many of those millionaires that Dave cited have at least one credit card?

[@candy2325]

That’s the same thing I’m wondering 🤔

[@libertarian4323]

Almost all of us do because they're convenient and no risk for a millionaire.

[@kim-o-san]

Thomas Stanley answered that in his book "The Millionaire next door". Almost, all of them use credit card. But, they pay it off in full every month and they budget all expenses

[@NickVetter]

People shouldn't even need to ask this cause its so obvious if you are responsible you will be better off using a credit card.

[@SanMicN]

I don't listen to Dave ramsey. His methods are so outdated and he's so ignorant. His investing methods are garbage and his opinion on credit cards are garbage.

[@BraxGandy]

@@SanMicN Dave is a multi millionaire, are you? How many millions of dollars do you have to say his methods don't work?

[@BraxGandy]

@@SanMicN ignorant people do not just stumble upon 55 million dollars 🤷🏻‍♂️ if his methods were outdated he wouldn't be making all the money he does

[@SanMicN]

@@BraxGandy that's not an argument. We're not talking about ignorant people here. We're given a hypothetical from a caller and we should take his word for it. If someone is responsible, do you think they should reap the rewards from credit cards? Yes or no?

[@BraxGandy]

@@SanMicN the answer is no, because everyone plans to be responsible with credit cards and then as soon as one emergency happens or one slip up happens you can go into debt. Every single person who has credit card debt once said "I'm going to be responsible and pay it off" then look at what ends up happening, thousands upon thousands of people in debt

[@johntravis4588]

Not everyone’s a millionaire who pays cash for everything and doesn’t need a credit score. Keep the credit card.

[@shreevardhanmundhra7461]

Most millionaires use credit cards. My father is one and does too. So that he doesn't spend time on the strategy, he's asked me to make one. We gets tens of thousands of miles every year to pay for free travel for my mother. It's no joking matter.

[@nythepremier]

Dave is good, but he is wrong here. Keep the card.

[@Michael-vf2mw]

@@shreevardhanmundhra7461 Dave's pretty irrational. Somehow he went from "None of the millionaires we studied got rich by using a credit card" (which is ubdoubtably true) "credits cards are useless and will hurt you in 100% of cases". No millionaire got rich by brushing his teeth either, but it certainly doesn't hurt.

[@abrahamflores2566]

By having a credit card and a credit score you will get a lower interest rate on a mortgage compared to a manually underwritten mortgage. So yes credit cards can make you hundreds of thousands in savings in your lifetime.

[@justinacase2623]

Not true, it's the same rates. It's ratios.

[@DaltonsFriendswood]

Nobody said they were getting rich on it but why not take advantage. I use my Discover card and get about $1000 a year cash back. I don’t think I’m getting rich on it but why not get that bonus when I’m spending the same money i would spend on my debit card.

[@todd2456]

Because you're not spending the exact same amount of money on your credit card. You think you are, but you aren't.

[@DaltonsFriendswood]

@@todd2456 I actually am. But I am probably in the minority. I transfer the money for each transaction on my credit card to a separate bank account each morning when i see the transactions that have posted. So, then it sits over there and is “spent” out of my normal bank account. Then the payment draws from the other bank account. I’m essentially using it as a debit card.

[@todd2456]

@@DaltonsFriendswood I do a similar thing except my sinking funds are there for an entire year of spending on my one credit card. But I still think I probably spend more to some degree than if it came directly out of the account.

[@mikenelson8377]

@@DaltonsFriendswood the point DR and KC have been making is that people can do whatever they want but at the end of the day, no one’s exactly making the cc business knees buckle by receiving points, miles or a free t-shirt in exchange for thousands of dollars 🤷🏼‍♂️

[@DaltonsFriendswood]

@@mikenelson8377 yes i understand that but i don’t think it means that you shouldn’t take advantage of it if you can be responsible. If i found $1000 laying on the sidewalk i wouldn’t just walk past it since it wouldn’t make me rich. I don’t use any credit card just to get benefits but it’s a nice side bonus.

[@chartuck]

Dave is extremely obnoxious on this topic. He sticks his feet in the mud and refuses to move from his foundation, even if he's wrong. I'd love to have Dave have a co-host who doesn't agree with EVERYTHING he says.

[@BraxGandy]

Dave has the $55 million to back up his argument, if you watch the show regularly you'll notice that so many people's call in because of credit card debt, run through Chris Hogans facebook group "Everyday Millionaires" and see how many people become far more successful after ditching credit cards 🤷🏻‍♂️ proof is in the pudding, he's not wrong

[@chartuck]

@@BraxGandy His credit card argument doesn't apply to everyone. And his rant got off-topic. I know plenty of wealthy people, myself included, with a credit card and we pay them off immediately and none of us think a credit card will make us rich.

[@sumobowler3790]

actually he is right on point and very consistent. Dave is teaching Financial Peace not basic personal finance, and using credit cards always equals risk and risk always steals peace

[@heero854]

Yeah, it's crazy. A lot of stuff he says usually makes sense, but if you're going to be doing necessary spending on things like bills and groceries, why not get 5% back? It's 5% you wouldn't have gotten otherwise. I think everyone understands you won't get rich, but if you understand the system and when to use the right card getting 5% back is amazing. Everyone wants to take a vacation, why not use those points for a hotel and flight if you can?

[@bw550]

@@chartuck Totally agree. His credit card and investing advice is pretty bad. I use my rewards credit card for everything. We are going to buy the items anyway, have it budgeted, so why not get cash back? A debit card and cash won't do that.

[@M8541Reaper]

Use a credit card and pay it off at the end of the week or month. A CC acts as a great barrier against fraud and the loss of what you have in your account.

[@joshsmith5784]

^^^YES, this is correct. Credit is superior in these ways.

[@BusArch42]

Yup

[@karimelmoutawakil7295]

I'm a millionaire I don't have debt and I take every opportunity to get every penny back. I only have and use one credit card that I treat like a debit card. It gives me cash back for groceries and cas and I always have automatic payments to go from my saving to pay my credit. If you don't have decipline and you may use money that you don't have please listen to Dave.

[@cristianperez1120]

Are you into any hobbies or do million aires just save save ?

[@karimelmoutawakil7295]

@@cristianperez1120 I travel a lot, swimming and invest in stock market.

[@blackworldtraveler3711]

Same. It’s a wonderful tool.

[@blackworldtraveler3711]

@@cristianperez1120 A person can still be a millionaire,save, pay their bills,and still have disposable and passive income to do what they want.

[@cristianperez1120]

@@blackworldtraveler3711 i just asked to make sure

[@doomshallot4203]

yeah, the main benefit credit cards offer is building credit score. Just stick to your budget no matter which type of currency you're using. Simple.

[@PorkRoll_F3]

I’ve got a bunch of credit cards... all with a zero balance 🤷🏻‍♂️ I use my AMEX, but it gives me points and 💵 back... and I pay it off at the end of every month 🤷🏻‍♂️

[@DebtFreeDad]

0 balance here also. I don't close them because I like my excellent credit score.

[@blackworldtraveler3711]

I’ve accumulated over $3k in points with my AmexBlue. It pays my monthly Netflix,Audible,and annual Amazon subscriptions. Since I use my AmexBlue for weekly groceries,gas, and minor things I use it like a debit card maintaining a cash balance and weekly $150 auto deposits. I currently have over $4k cash in account and ready to pay my annual $1700 property tax next week. Wonderful tool to move cash.

[@PorkRoll_F3]

@@blackworldtraveler3711, I LOVE that!!!

[@Shooottta]

When it come to credit card talk dave is stupid lol😂

[@HamiltonRb]

I have had a Visa card even before they changed the name from Chargex to Visa and have never paid a dime in interest

[@ImGeoX]

He answered the question at the end when he said his friends have credit cards and some are wealthy. So clearly yes you can have a credit card if you are responsible. I have 3 actually and I pay them off as soon as I can and I reap those cash back rewards and have got nothing to lose as long as I stay responsible and within my budget.

[@drhoads08]

Oh man, I bought an expensive painting with cash once and it was never delivered. When I went back to the store it was closed down for good. I could have filed a dispute with a CC and got my money back easy. I also had my debit card skimmed at a restaurant once and they drained all the money out of my account. I got it back but it took a while and I had to fill out forms and had no cash in the mean time (College student at the time). I now have an ATM card only with no debit function at all. I try to use my CC whenever possible. Had it for 26 years and have never missed a payment and always paid in full.

[@BrokeMillionaire1]

Of course you can have a credit card and be responsible. I have used a credit card for the past 4 years since we’ve been debt free. We don’t spend any more than we would spend with a debit card or cash. We budget! We get a 2% discount on each purchase. Our net worth grows exponentially each month. Oh, and I haven’t paid a dime in interest in forever.

[@markg999]

@WeWhoAre AboutTODie Yes I'm proof of that. I have both a wife and cc and in baby step 7.

[@MrMasterDebate]

Actual answer: Actually yes. He is using data regarding the average people to apply it to a singular person, who could be the exception. No one is suggesting that they are going to make a lot of money by the credit card points, just that it may help a bit.

[@libertarian4323]

Correct.

[@GeometricMason]

Dave becomes very condescending on this subject and it's about the ONE thing I don't like about him. One thing Dave neglects to mention when he is ranting about credit cards is "Interchange Fees" which are defined as: "transaction fees that the merchant's bank account must pay whenever a customer uses a credit/debit card to make a purchase from their store. The fees are paid to the card-issuing bank to cover handling costs, fraud and bad debt costs and the risk involved in approving the payment." So when you buy something for $1X and use your debit card the merchant (NOT YOU) pays fee to the bank that issued your card. The fee is higher for credit cards and higher still for charge cards like American Express which is why many merchants don't accept AmEx. For example, I have a credit card issued by Capital One. That card sits in a drawer in my home. Every month all my recurring bills go on that card. Cell phone, cable TV, car insurance, Netflix, you name it. If it's a recurring monthly bill it goes on the Capital One Venture card. Every time one of those companies pings my card, they pay a fee to Capital one.... and Capital One gives me points. Then, on or around the 13th of the month, I pay it down to zero... and on my statement date which is the 17th, Capital One reports that I have a zero balance. And I never pay one dime in interest or fees to Capital One. Now you might ask "Why don't you just put those charges on your debit card?" 1) the credit card rewards and 2) I get paid bi-weekly so my paycheck is not on a regular day of the month, yet all the above-named bills charge on the same day of the month. So to answer the caller's question, YES if you have a credit card and pay it off every month you're OK. and NO Dave, I don't expect to make a fortune off credit card points. Give me a break.

[@TDCodemonkey]

I've heard Hogan talk about credit cards as well. He says in the study of millionaires that those studied didn't carry credit card debt. Ok, I'm fairly confident that a lot use credit cards but pay the balance monthly. I think Dave has a point about spending more when paying with credit than cash because your brain doesn't register the pain of loss the same way.

[@gamerji-li4755]

Should be using a budget regardless of what you pay your transactions with. Our area doesn't even accept physical cash anymore and I have been hacked on debit cards, so I use cc but treat it like a debit card.

[@akkhanhgaming1179]

Nice video! What about VectraCoin algorithm review?

[@c103110a]

I disagree with Dave. I use my Capital One Visa card for everything and get free cash back. No yearly fee; no interest paid ! Just free cash !

[@swagsonville9675]

Idiot

[@mclaine33]

Airline miles or card points were never intended to make you wealthy. They are used for “fun spending” and allows you to do something for “free” because you already spent money on stuff.

[@Renamandul]

True "discipline" is being disciplined enough to save for an emergency fund and use that fund in cases of an emergency. Or saving and using savings toward buying products.

[@thejokerspeaks]

I think this guy has a the savings, he's chasing 5% cash back.

[@-Wreckanize-]

This is where I differ from Ramsay. I use a credit card, I have no consumer debt. I use it because of the additional protections that come with it. You have more fraudulent purchases protection versus a debit card, you have additional services, like credit checks and even credit reports, FICO scores, etc, and the additional points at the end are nice (while I could care less about them) I also realize that I am the exception, not the rule, and if Dave Ramsay preached responsible credit card usage, it would only work for 10% of people, maybe less. It'd be like trying to teach responsible gambling usage.

[@mikemayo4812]

If you really want a credit card, go get one. You don't need Dave's permission.

[@bigmeany1184]

My exact thoughts! Why do people bother calling Dave to ask “permission” for something he has absolutely no say on? You’re gonna get a credit card if you want to PERIOD!

[@shreevardhanmundhra7461]

Hmm a credit card question on this show. Almost all viewers can repeat verbatim what Dave's response as well as arguments against credit cards will be.

[@gamerji-li4755]

Yeah, when it comes to cc advice, I look to other millionaires like Dan Lok or Graham Stephan lol.

[@mattpalmq]

@@gamerji-li4755 Graham Stephan is awesome.

[@justinacase2623]

You mean ppl who have one one hundredth the wealth of Dave? Sure. Most are clowns in debt.

[@gamerji-li4755]

@@justinacase2623 Who are you talking to? There are plenty of millionaires and billionaires richer than DR that use CC responsibly. Also, plenty of us average folks still can benefit without paying a dime in interest and without overspending (because we have a strict budget we adhere to) using a CC by treating it like a debit card and never spending more than we actually have regardless of which plastic we use for the transaction. (And physical cash isn't even accepted in a lot of places now, so that's a moot point and also does not stop everyone from spending.) Debt free and I use cc to build credit score and get cashback on everyday planned purchases like groceries.

[@justinacase2623]

@@gamerji-li4755 Talking to you! So tell me, if you are so wealthy, why do you need credit? Never been to a biz that doesn't accept cash. I can get discounts you cannot by using cash. I own a business, I charge people like you 4% more for using a credit card. I pocket money for dealing with cards. So there goes your cash back. Never forget cash is King, everything else is a joker.

[@MOBMJ]

4:27 Dave was wrong, millionaires also use credit cards as well but as the guy on the air said he's responsible about it. again if you are responsible about it don't spend more then you make pay off in full don't see a problem with it. I myself now so people that are millionaires and use credit cards

[@justfelicitous5109]

I wonder why people ask when they know his answer. They are adults who can do what they want. But, I do like that Dave consistently explains his position.

[@DebtFreeDad]

I agree, some people use them responsibly. I just elect to use cash only. I don't wanna play the credit card game. Now, I dont close my cards out because I like my excellent credit score.

[@senquezbradley5092]

I just don't know about this. I know some people can't handle credit cards but not all people are the same. I love Dave Ramsey but i just don't know.

[@blackworldtraveler3711]

I use credit card and never debt or fees with them. I grew up around people that are alcoholics and I don’t drink. Everyone curses around me and I never speak or type profanities. All about common sense and discipline with me.

[@sumobowler3790]

while financially irresponsible and undisciplined people exist, anyone who cannot see how financially responsible and disciplined people can get into trouble with credit cards is someone with zero real life real world experience

[@blackworldtraveler3711]

@@sumobowler3790 I only focus on myself. For the undisciplined I own several thousand shares of Visa and MasterCard stock in my Roth earning quarterly dividends. I'm going on 30 years,49 states,57 countries,among other things using my two credit cards and never debt on them or paid fees. Even a $24k partial remodel four years ago and still no debt or fees. Can't get more real world than that in life.. It's simple, don't spend money you don't have. With my Platinum Visa there is a feature to turn it on and off and right now since I'm not traveling anywhere it is turned off. Have a cash balance of around $1500 in this account. With my AmexBlue it's used for gas,groceries,Amazon,copays if needed,etc. and paying my home/car insurance and property tax each year. Currently I have a cash balance of almost $4k in this account with additional $150 a week added. I'm paying my annual $1700 property tax with it next week. And I have over $3k in points with this card and that pays my Netflix,Audible,and Amazon subscriptions and an emergency fund source.

[@senquezbradley5092]

@@sumobowler3790 Anyone can can take a loss from anything. I'm completed aware of that. You don't need much experience to know that...

[@chad5617]

I completely disagree with Dave on credit cards. There are cards like the fidelity visa that give 2% back on all purchases. That 2% adds up over time. If you have the self discipline to pay them off every month and not spend more than you have, they are a great tool. Otherwise you're leaving free money on the table.

[@christianherrera4729]

No

[@anniesshenanigans3815]

pay off every month... If you can't do that, then no, you don't need one. The only time I have a balance to carry over is with a large purchase that I do not want to tie up my cash, anything over 800 dollars. Capital one has a great card for air miles if you fly a lot or planning a trip... Discover gives cash back which adds up!!

[@floridaman6982]

Discover cash back covers my Christmas/ birthday shopping just using for gas groceries & bills. I pay it off by the week bc that’s how my budget works

[@brianpitsilides5337]

Does Dave not understand that the only way a business can stay open is if they provide a good or service that benefits their customer? Businesses must create win win solutions in the market place otherwise no one would transact with them. Credit cards provide a lot of conveniences debit cards do not. I for one am happy they try to collect data on their customers (as long as it’s done legally) in order to provide the best customer experience and meet the needs of consumers. The claim that no everyday millionaires said they built wealth from credit card points is true, but nobody thinks that’s how you build wealth in the first place. I know several personally. They all have credit cards. They’re great for a small business owner to hold off expenses until the end of the month while they have outstanding accounts receivables among a number of other things. If you think credit card companies take advantage of customers, then go start a better one. Seems like you would make a fortune. Except you probably wouldn’t stay in business. Late fees and interest are required at the levels they are because of the risk you incur of default on an unsecured loan. Nothing wrong with not wanting a credit card, but I know Dave is smarter than to think they are evil.

[@RiSkyNick]

Where I live, scammers put chip readers in the gas pumps. I'm not comfortable using a debit car everywhere.

[@ngb802]

Dave makes a few good points , one being one tends to spend more using a credit card / Carrying over a balance / paying more in interest. However when using a credit card as in not spending more than required your purchase is protect should you have any issues with the product / service and , you leave a lot of money on the table those 1-5% cash back rewards do add up when your spending on necessary items

[@josebarba]

I love how Dave just smiles when the caller started mentioning credit card rewards.

[@JessicaHicks]

Right. He already knew what his answer would be.

[@libertarian4323]

He's used that silly straw man argument so many times he;s got it memorized by now.

[@dportal844]

Honestly to me keeping a credit card and paying for it Is a convenience thing more than anything. I absolutely hate carrying cash. I find it dirty and hate carrying coins and spare change. Half the time I end up losing the coins anyways. Which means it costs me money. Not to mention that cards help build credit and you get points. If you are responsible I don’t see why not use them. This is one of the few points I personally disagree with Dave.

[@TheSmoothGrind]

I am a millionaire and I got this status off my rewards points.

[@costco_pizza]

You do what you want to do Phil, but let me tell you: Dave has travelled the world, talking to thousands of millionaires. He knows what he is talking about. If you wanted six pack abs, you should listen to the personal trainer who has six pack abs. Similarly, if you want to build wealth you need to listen to the multimillionaire telling you what to do. Millionaires don't tell you that they made their wealth off of points or airline miles. Don’t listen to your broke friends and broke family members for advice! Get out there and change your life!!!!

[@TheSmoothGrind]

@@costco_pizza I became a millionaire thanks to my reward points on my Citi card! If I wanted to be a peasant with a debit card, I would. I am currently rubbing my Citi dividend card all over my six pack abs as I type this response.

[@solomonkim1951]

I definitely can't trust myself with a credit card, but want to build credit in order to get a house at some point. The compromise I settled on was to put my internet bill on auto pay with it (and pay it off the moment I see it hit my credit card balance in online banking), then I physically destroyed the card so that there's no possibility of me using it for anything else. I think Dave's advice is good for a person like me, but, as is often the case in other facets of personal finance, I think he's too strict sometimes--even though I'm not capable of handling it, it doesn't mean nobody is.

[@qbandan11]

“I found $100 on the street should I pick it up?” Dave: “No millionaire ever built their wealth finding money on the street!”

[@JiisTube]

to pick up the $100 you must first spend $6,600, in your analogy. And people who ignore picking up the $100 only spend $4600.

[@qbandan11]

@@JiisTube Dave recommends and uses a debit card, those are made of plastic too

[@paratek_io]

When I use over 6000 litres of gas a year and save $0.05 cents per litre. It adds up. I have never payed interest and I pretty much only use it for gas.

[@drjonathanrama]

I’d say this is the only point where we don’t agree with Dave. We are “everyday millionaires” but after playing the debt free game for years, behaviour is ingrained. I don’t ever worry accruing credit card debt. The baby steps are great but also for those who need the guidance and the psychology to get back on track.

[@BrianaBudgets]

I have a credit card to build my credit. Because everyone acting like cards will ruin your entire life I am 27 years old with very little credit which does not bode well when it comes time to purchase a house. I have no debt and a good amount in savings. Don’t be afraid of credit cards unless you have no self control. In that case, you have more issues than just a credit card.

[@theladymvp]

Dave addresses the behavior and temptation that can come with it. That’s good. New patterns and behaviors can develop even when we’re disciplined. Forward thinking. 👍🏾

[@mikechet49]

We went into a GAP in Maine and when we got to the register the bill came to $400. They offered my wife a GAP credit card for 75% off the bill. We walked out of there paying $100 for $400 worth of stuff. We paid the bill when the statement came. She hasn't used the card in months. I'm not really a fan of store credit cards, but how can you refuse a 75% discount? No one thinks they will get rich from credit card rewards, but if you're disciplined, you can accrue significant savings.

[@ademd7099]

Well duh Dave, you can't make millions off of credit cards. So you are right, no millionaires made all their money off of credit cards. If you are going to go grocery shopping once a week, every week, why not use a credit card to get money back? If you are going on a business trip every other week, why would you not use a credit card that will give you back points?

[@jacobriverson3807]

I’ve been using the Apple Card over a year 2% cash back and the constant reminders and updates on my phone make it too easy to stay out of debt.

[@iamthere135]

See this is what I dont understand about Daves logic. He is all about investing at certain stages, but if you are getting 2% cashback and getting reminders to pay stuff off is an awesome rate of return!

[@jacobriverson3807]

@@iamthere135 the card literally shames you for paying interest etc. There may be logic to buying more with Apple Pay since it is easier but I’m still staying within budget.

[@herbertscott9575]

Dave probably has all his insurance, car rentals and hotel stays on his business account, probably a line of business credit. Meanwhile in the real world we are still granted low interest on mortgages, lower insurance rates, apartment leases ect. ECT. based on personal credit utilization and worthiness. We also will have a difficult time trying to rent cars with no credit cards, especially from an airport. No outstanding debt should be the goal, however with credit, an adult in today's world must learn how to manage it. Dave's program is elementary/middle school. Checkout Cory P. Smith books when you're ready for high school/college.

[@jeffwvu4602]

"An adult in today's world must learn how to manage it." THEY DON'T. They're not doing it. Credit card debt has skyrocketed over the years. So your ignorant plan is for people to keep using them. You're very trusting of people. You call it elementary and yet people who follow the plan get out of debt and WIN. People who don't just go around in circles chasing their tail. So many know it alls on here and not a single one of you could ever help someone. Yet Dave has gotten millions out of debt and made lots of people millionaires.

[@herbertscott9575]

@@jeffwvu4602 By saying Dave's information is elementary I'm calling it step one, not disregarding it. Once you have no debt at all, you're still going to need to restablish a good credit history, utilization and profile. This is unavoidable as long as our credit reports are used for insurance, background checks, renting cars, employment checks and buying homes. Telling people to avoid them is like telling a baby don't walk after they stumble a few times. Dave's program is a great start, but their are steps after paying off a mortgage and funding retirement, you'll still have life to live.

[@StratRider]

i pay for everything with a single credit card mostly for tracking purposes. Also, I feel that it is better insurance if there is a dispute. I believe they CC company can fight that better than I can with my debit. Lost or stolen - I'm covered. And finally, yeah, I like that the bank is paying me to abuse their service.

[@kabloosh699]

Credit card companies actually charge the businesses you buy from a small fee. It might be 1-3% of the price of the item, but that is where they make their money off of those who are paying off their bill at the end of the month. This is why some small businesses would up charge you a little bit if you use a credit card instead of cash.

[@tomiasthexder7673]

Dave's philosophy is for the financially incompetent. It is a great philosophy and one I almost always follow, but I also have a credit card that I pay off every month incurring no interest. I just used point I accumulated to save $300 on some flights I just booked.

[@TheY2AProblem]

You might as well ask Dave Ramsey, “am I the exception to the rule?”

[@blackworldtraveler3711]

A few years ago he admitted around 5% have no issues using credit cards. But he has a very large audience of irresponsible followers now so he might as well stick with what he's doing. I'm definitely not selling my Visa and MasterCard stock.

[@TheY2AProblem]

@@blackworldtraveler3711 I still have two credit cards but I haven’t used them since August 2019. I’m waiting for them to close due to inactivity because I don’t want to have the argument of them trying to convince me to leave it open when I’m talking to a customer service representative.

[@blackworldtraveler3711]

@@TheY2AProblem I don't have those issues with people like that. It would take me less than 60 seconds to get it done and hang up.

[@25ManofFrame25]

I watched a couple of Dave's video on the same topic, and I noticed one thing. He never explained why using credit card is bad for responsible people. I understand the "activation of pain" point that he mentions all the time. But aside that... He is only saying that millionaires don't get rich off it. Yes. You probably won't get rich from points, but how does credit card may hurt you, when you live on budget, track ALL of your spending, live debt free, and use credit card NOT to become rich, but to help you build a credit score (for example). I'm not disagreeing with him. I just want to hear more constructive explanation on that topic. Please 👇

[@BrokeMillionaire1]

Some credit cards offer 6% back on groceries. So would someone rather pay $94 for groceries or $100 for the same groceries? You are right!

[@gabor4509]

VectraCoin algorithm everywhere :D

[@Azel247]

Not ONE of those 10,000 millionaires had a credit card? Or just none of them said they got rich because of it? Did you ask that question directly? As a scientist in the medical research field, I would really like to see this data.

[@Corkfish1]

Dave is TOTALLY wrong on this. Im a millionaire and of course it didnt come from cash back rewards. That said I pay all of my bills with credit cards and I make an extra $700 or $800 a year ( tax free) in cash back from my credit card. So sorry Dave, you're wrong, I AM winning.

[@triad6425]

The problem with Dave's advice is that it's what MOST ppl need to hear. You and may are not the target audience. It's my friend with 2 cars underwater with $950 in car payments that eat out 4 times a week and complain about being broke.

[@Zaerki]

Purchase protection for online ordering is pretty important. Sure, it may not be building your wealth, but it is a tool that can be used responsibly.

[@johnrandom3903]

I disagree with Dave on credit cards. I like his stuff, but I disagree on this.

[@DebtFreeDad]

I agree, if your responsible it's an asset.

[@brock3805]

Same, in my opinion if you pay it off every month (which you MUST to make it worth it) and keep close track of your purchases to ensure you aren't spending more due to the ease of access from credit cards then you're golden. Your credit score can in turn save tens of thousands of dollars when its time to purchase a home.

[@zunedog31]

The only people who should take his advice on credit cards are people who have massive discipline problems and are always in debt. Josh can definitely keep his Freedom Card and make 75 bucks a quarter in rewards. And no he won't be a millionaire from it, that's not what he asked.

[@mannyjeanpierre4062]

@@DebtFreeDad lol that's a first

[@DebtFreeDad]

@@mannyjeanpierre4062 free flight to Japan for four one year. And I only used my card to pay expenses I already had, gas, groceries, cell phone, and so forth.

[@keithowu]

Why mischaracterize what he asked? He didn't say he'd be a millionaire accumulating points. The credit card companies aren't making money off these rare, disciplined card holders. They make money off all your callers who are up to their eye balls in credit card debt. The short answer is yes, you can do this and sleep well at night if you are highly disciplined and out of debt. The reason Dave takes this 'blinders-on' approach is because he knows 99.9% of his customers cannot do this and he cannot show ANY slippery slope. This is fine but to mischaracterize the caller's question is not fine. Dave is right credit card usage does create 'spend creep' for almost anyone.

[@vazjc]

That's pretty much what I believed but now am following the steps and stopped using my credit cards.

[@varsha4469]

Dave is right, it is like playing with a big , old snake. You think you are in control until you put a few things on the card and suddenly you are unable to pay off that balance, and then before you know it it's strangling you.Avoid the trap! it's deceptive

[@TheEthan3037]

I have 8 CC and never paid a dime in interest. I've gotten a few thousand dollars in sign up bonuses and I get at least 2% of everything. 5% off utilities and 5% off other rotating categories.

[@stevethullen9228]

I have had a cash back card for decades. I have rolled a balance to the next month ONCE in that time (the deal was too good to let it pass). Over all this time time I have made more in cash back than I have made in interest. I use it only for my needs, not my wants. If they are gonna give me free money, I am going to take it.

[@evanmcgough5210]

Weird how he spins what the said into what he said. He didn’t say it would make him wealthy but he said it gives you a small amount back for using a different piece of plastic. I gain about 75 dollars a month back from using my card. I don’t spend a cent beyond what I’ve budget...

[@seanrobinsonjr4363]

Credit card isn't just a debit card that has the potential to make you have debt. It's also about security, travel insurance, refund insurance, and not to mention it helps your credit score which can score you lower interest rate on loan/mortgage. If you truly have discipline, credit card has their positives that debit cards doesn't offer. It's not about that small cashback %. It's not about getting rich. It's about getting the few benefits that a debit card won't offer. You can play their game and win a little. The credit card company makes it back by the other 99% that doesn't have discipline.

[@cryptoflippodcast]

Like anything if you use it responsibly. It's usually ok 😤🙌

[@XICwoodXI]

Another thing people forget is that credit cards have more fraud protections than debit cards. Your liability on fraud charges is limited by federal law where debit cards are not. If you can't really prove your fraud charges to a bank they don't really have to give you back your money on fraud debit charges. Most of the time they do, but you have to really prove the charges. Credit card companies just want you to report it as soon as possible in my experience.

[@doriankithcart]

So if you don’t have a credit card anymore how do you build credit to make purchases ,such as a car and house, where they may look at your credit score and history to determine rates?

[@chrisstaub5880]

You don't usually need loans to buy anything other than a house, and maybe some types of college degrees.

[@BlueDauntless]

Love Dave’s consistency.

[@dant6067]

He's consistent but it's not good advice for people who have self control.

[@RE2PECT]

I like the Amex charge card it’s just like a debit card YOU have to pay it off at the end of the month

[@Naturalbeautytoo]

I'm not a fan of the 20 credit cards to get trips, cash or points at all. I think it's dangerous and irresponsible to have that many accouts open. However, a responsible adult who understands a credit score is a powerful and necessary tool in life should not feel guilty about using it responsibly ( paying off what you charge monthly). I can not argue that purchasing items with credit seems less painful but that's why budgets are in place. Purchasing a home with only manual underwriting or getting a good job could be difficult without a credit score. I agree with a lot of Dave's beliefs but not this one.

[@gameoftrade1764]

l recommended a professional broker to you guys sometime ago, can I get person who invested with her comment below let's gooooo

[@introxtagh3750]

hey Dave, l did invested with her i made huge profits thanks for recommending her

[@henryhenry1573]

who made profits for you, am really looking for a pro who can manage my account and make me huge profits

[@olivialiam7458]

I saw that recommendations but I did not bother chatting her up 🤦🤦🤦

[@cartersebastian2870]

wow I'm glad I did withdrew my first profit two days ago now I have another ongoing trade with her

[@jerrypic2350]

hello, thanks for introducing her to us i actually did the trade with a loan from my friend and now with the profits I payed up and now am happy and comfortable

[@conureron3792]

For some purchases, e.g @ gas stations or a restaurant, I use a credit card just for the protection of possible identity theft, etc. I don’t want the risk with my debit card.

[@todd2456]

The same risk with a credit card. Duh.

[@conureron3792]

@@todd2456 - not exactly. And I don’t want my use of the debit card encumbered via identity theft. Which has happened to me and I don’t want to repeat the hassle.

[@todd2456]

@@conureron3792 you can't have your identity stolen by using a credit card? Ok. LOL

[@conureron3792]

@@todd2456 - true, but thieves stole “something “ I.e. my card number, etc...then used it at an atm to draw out cash. So I want to avoid that scenario again.

[@peterthomas4528]

Most credit cards offer fraud/purchase protection that debit cards don't. And of coarse nobody would believe that credit cards earn wealth. So for the disciplined frugal consumer, credit cards are the way to go. Those of you that are not, cut them up.

[@ThePartyRockshuffle]

The liability of fraud on the debit card is on the user unlike the credit card is on the bank. One hacker can empty your bank account and you have to go to many hurdles to repair the crime and in the meantime you have to money. Credit cards are an insurance against theft.

[@maxbenda1053]

I think when you’re young you definitely need a credit card to build up your credit score

[@AndrewPL5]

using Dave's logic, you shouldn't need a credit score because you're buying everything in cash. Such BS lol

[@maxbenda1053]

@@AndrewPL5 you have a very good point you shouldn’t be using a credit card for everything you buy however if you want to buy a house I don’t think many people would be able to afford to pay cash and this is where your credit score come in

[@AndrewPL5]

@@maxbenda1053 oh 100%! Credit cards shouldn't be used a lot, but definitely not many people buying a home cash. It would be nice but hard to do lol.

[@nttwashere]

@@maxbenda1053 You can get a mortgage using manual underwriting with a lender. Yes, it's more paperwork but it's what we're doing since neither of us have credit scores :)

[@carsonsworld3978]

I had a credit card even with no job and as a student. I always paid my bill in full every 3-4 weeks. I use it like a debit card. I now have an 800 credit as well as over 150k points in 2-3 years of collecting. My credit card is free with my bank. I now have a free business class flight to pretty much anywhere I want to go just for using my credit card. Blows my mind how people spend money they don’t have.

[@brandsafetychris2215]

Dave is good at redirection. He references the millionaire data from Chris’ book but doesn’t answer whether those 10k of millionaires used credit cards, he just makes a mockery of card usage.

[@libertarian4323]

Most EDMs use cards, and DR knows we do, so he avoids that discussion

[@pwners4u]

I don’t know if in USA it’s the same but you need a credit card to get a mortgage in the UK as they use that to see if you can pay on time and are responsible with money. There is no way someone can buy a house with cash here unless you won the lottery

[@mambofuego5101]

If you have to call Dave for permission, you can’t manage your own affairs. No CC for you!

[@ewicky]

As with this caller, I gotta disagree with Dave. For folks on an "every penny counts" budget, this can be just another tool to make it work. Not airline miles, cash back. Every month, redeem the cash back and then pay off the remainder (~99%) of the card. I agree with Dave's point that nobody "gets rich" off points. And while there are a couple isolated cases of that actually happening, it's certainly not the norm. I'm not saying anyone should plan on that being their /only/ tool to get rich, but every penny counts. Think of it as a debit card that gets you a 1% discount on everything. I also agree with Dave's theory that the low friction of plastic subconsciously causes people to spend more. I think some people are probably multitudes more vulnerable to this than others. But this point is almost entirely moot since it's 2020 and you gotta use plastic anyways for dial-in billing, online, and app based transactions (debit or credit or otherwise). Nobody is becoming a millionaire by insisting every transaction they do be in cash (except drug dealers). I don't wanna hear Dave's stat that "nobody got rich off airline miles." I do wanna hear a stat of how many of those 10k millionaires studied refused to every open a line of credit (besides mortgage) their entire life. The older generation, I'm sure a good chunk. But recent, younger millionaires? Not a chance. That's not even mentioning the consumer protection benefits of credit cards. I bought a TV for almost $1k years back. It had a 2 year manufacturer warranty. I declined the store's offer to pay for a 3rd year of extended warranty, because I knew my card included that for free. I paid off the card (less the cash back points redeemed), not a cent of interest paid. And guess what? Right at about the 2.5 yr mark that TV started power cycling. The credit company wrote me a literal check for the entire purchase price of the TV including original sales tax! Not the depreciated value the store's warranty would have offered. Again, I'm not "becoming a millionaire" off credit card consumer protections, but it has saved me over $1k over a few years. Chump change in the grand scheme after a couple more years' hindsight, but every penny counts. Sure, credit cards cost merchants more. But unless the merchant is willing to pass a cash-discount on to me (Arco), then I use credit every time. I don't even know the PIN to my debit card. If there was a debit card from a reputable bank (FDIC) that has a full suite of consumer protections and paid 1% cash back without any annual or account fees, I'd close my credit cards tomorrow. After all, I don't ever carry a balance or pay any fees, so I have no need for them to really be "credit" cards.

[@mattpalmq]

Dave's argument that none of the 10000 millionaires they interviewed said that credit cards were the reason they were able to build wealth makes no sense. Obviously 5% cash back isn't going to turn you into a millionaire. But if you can save 5% on every purchase and then INVEST that money into the market, 100% that could help you become wealthy. I'd be willing to bet the vast majority of those millionaires use credit cards too. They just are disciplined enough to pay them off every month so they don't accrue interest.