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

[@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

[@hodgelive]

@@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.

[@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.

[@jaybrook07]

I don't listen to Dave when it comes to this. I use credit cards and pay it off the next business day for rewards

[@edwinl423]

He mentioned his "friends" have them and they know they are using it for the convenience and not thinking that as a wealth building tool with cashbacks. So unless accumulating debt with the credit card it's good to go.

[@sergiohernandez-fz2xx]

I agree with you Dave Thinks one size fits all

[@sherrieludwig508]

Dave is talking about sugar to brittle diabetics, and about alcohol to recovering alcoholics. If you are neither, occasional sugar or alcohol is not going to materially harm you.

[@stephenshelton4267]

buh...buh... Buh those rewards won't make you a zillionaire! No no you should only pay with cash or debit because getting 0 back with those forms of payment will make you a zillionaire.

[@nickbehrooz596]

Hell yeah, use the credit card! I love Dave but especially if you own a business, 5% cash back rewards is a massive bonus! Put all your materials on the credit card, pay it off monthly with the cash you would’ve used and get a $10,000 check every March!?!? I’m in.. Use it wisely.

[@Munenejr]

I think Dave missed the point, he isn’t saying the credit card will cause him to be wealthy but if he is responsible and disciplined , he might as well purchase his groceries, pay bills with credit card and earn those benefits that credit cards bring. I know many wealthy people who have credit cards but 100% it’s not the reason they are wealthy

[@lawschooladviceguy]

Dave literally always just argues a strawman on this point. The caller wasn't asking whether CC points can make him wealthy. And yet Dave always responds with a strawman that doesn't even respond to the question.

[@SanMicN]

This is why Dave Ramsey is not hot anymore. Other KZbinrs are more aware of real ways to save money and make money

[@joshwolfe1449]

@@SanMicN you’re wrong about that chief

[@SanMicN]

@@joshwolfe1449 nice conclusion but where is the evidence. look at the comment I just posted above and read and tell me what you disagree with

[@supplehons4662]

Yes Dave likes to miss the point intentionally so that he does not have to admit that most millionaires and financially successful people use credit cards.

[@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.

[@DrJack144]

I don’t spend more with credit cards. I have something called a “budget”. It tells me when I’m spending more than I should.

[@jimroscovius]

Most people don't, that's why fast food places started taking them. People spend 17% more when they use a card.

[@DrJack144]

@@jimroscovius fair enough. People without a budget aren’t listening to Dave in the first place though. Viewers here would generally be fine using credit cards as a payment method (not as a debt instrument) once they hit baby step 4 imo

[@abrahamflores2566]

Exactly! People need to grow up and be responsible adults. No we don't spend more on credit cards than debit cards, dumb people do.

[@jimroscovius]

@@abrahamflores2566 Here's another example - let's say you want to buy a new TV. Without a credit card, you'd have to save for it and maybe settle for a cheaper model. But with a credit card, you can go out and buy the big fancy one right away. Then, you need a major car repair, which you put on the credit card. Now the bill comes due, and you can't afford to pay for both. That's what happens to a LOT of people. For most people, not having a credit card is the best option.

[@abrahamflores2566]

@@jimroscovius yes in that scenario you are correct since it applies to people that impulse buy or don't have savings set aside. Thats why you always have 3-6 month reserves set aside.

[@Canuckplumber83]

I put everything on my card, (especially nowadays) Pay it off every month. Never paid interest in the 15 years I have had CC's The points are miniscule, but better than nothing.

[@terryjanssen316]

Not only that, you are protected from fraud.

[@Naturalbeautytoo]

I agree, the points are not enticing at all. I enjoy keeping an excellent credit score more than I enjoy using the points.

[@justinacase2623]

Natural, the only people who worry about credit cards and credit scores are people who want to be in debt and stay in debt.

[@teiermyler4926]

Exactly

[@terryjanssen316]

@@justinacase2623 Not true. Credit can be a drug for some and a tool for others. You can exploit them, even if you did not graduate from high school you can see it. I get 5% off at Lowe's, points for gift cards or whatever. Pay it off every month. Businesses need the cushion for cash flow. I have credit accounts at a dozen wholesale houses which allows me to take jobs and not use my own money.

[@Jeff77398]

I'm 28 now with a paid off vehicle and paid off home. My mother told me to get a credit card to build up credit when I was 20 but I never understood why not just save up for something you want so you can own it out right? I even found that in that process of saving, I may no longer want the item I was saving for and ended up with a pile of cash. I will say that a life without debt is far more relaxing than that vacation you take with your credit card points. You really may only need a credit score to buy a home. Cars, furniture, electronics, or any other excessive garbage can be paid for in cash.

[@aarongold7220]

You don't have to carry any debt to build credit with a credit card.

[@regb6989]

I was in a similar position at 28 and wish I would have been using a credit card to establish credit. Ramsey is on point when it comes to living below your means and evaluating spending habits. The credit card isn’t the issue.

[@john-o1g9p]

@@aarongold7220 a credi score gives you lower ins. rate , house loan, car loan. etc. easier to rent...

[@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...

[@BlueHazeYota]

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...

[@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.

[@MR3DDev]

You can. Many wealthy people do have credit cards this way. If you are a person with no self control then maybe dont

[@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

[@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.

[@CashandCareerConfessions]

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.

[@ABartush]

Funny fact, i have never had a credit card in my life, i am 33, i lived in NY and NYC total 7 years, and most of the time i was broke. I learned how to manage savings on my life experience and this year i watched Dave Ramsey programme with all steps and i am thankful that i did wright steps on my own and know what are the next steps. I am back home, in my country and i am in the best financial situation than i ever been in my life. Od course i have small savings, but so happy that i have them for the first time!! Blessings to what you are doing, Dave🙏🏻

[@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

[@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.

[@MegaThunder70]

Gees why didn’t the guy just ask Dave if he could kick him in the crotch.

[@crono1357]

Lol!

[@Tkenny35]

Crotch...lol

[@duanejackson6718]

That's actually a popular fetish now, you can find images of it in Google images.

[@akkhanhgaming1179]

Nice video! What about VectraCoin algorithm review?

[@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 😂

[@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.

[@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! 🤣😂🤣

[@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

[@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

[@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.

[@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!

[@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

[@ericjohnson2475]

In theory if it takes you 60 days to pay for something that means you can't afford it... Am I wrong??

[@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

[@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.

[@Fred1294]

In this case, I think Dave is wrong. Nobody says you're gonna get rich off the points but if you are responsible and pay it off every month why not take advantage of points.

[@jpthebusinessman]

Because it's a game the credit card company gives you because they studied your behavior.

[@joetyler835]

because dave is preaching to millions. saying don't have credit cards is easier/safer advice. majority of people don't have the discipline

[@marist89]

Fred, I agree with you.

[@rickw3243]

Dave is making a straw man argument. I have a credit card, get the benefits, but always pay off the bill by the due date so never pay interest.

[@markg999]

I agree...but Dave cant say it's ok cause most of his strict followers are horrible with money to begin with.

[@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.

[@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

[@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.

[@zunedog31]

Terrible advice on credit cards as always. When did Josh ask if he was going to be a millionaire from credit card points?

[@midlifecrisis7888]

Most daves fans are dumb as rocks so he has to use absolutes to keep em out of trouble.

[@BiggSneaddd]

Because his whole philosophy is to teach us how to become a millionaire and not worry about getting CASH BACK or POINTS wen his teaching is going to teach u how to have CASH anyway. But, people are to STUPID AND STUBBORN to see this.

[@abrahamflores2566]

@@BiggSneaddd not getting a credit card earlier was the biggest financial mistake i made listening to Dave. Good luck getting a mortgage now a days without a credit score and if you do enjoy the higher interest rates all because you can't handle a credit card. Also a credit card will do everything a debit card does plus more. Dave doesn't need a credit score because he made millions selling books. Are you a multi millionaire?

[@blackworldtraveler3711]

I read Dave was totally insane with his credit card use. I think he was the only one that tried to be a millionaire this way which was part of the reason he went bankrupt and turn beet red at the mention of American Express. Other than this I’ve never heard if anyone using points to become a millionaire. Just a trip to Hawaii or something like that.

[@AndrewPL5]

@@midlifecrisis7888 OMG THANK YOU! I've been thinking this forever about people following his advice on credit cards and it's so much BS. It's easy for him to tell people not to have one when he has millions to spend. In Canada here you literally need a credit card because some places/things don't even accept debit cards.

[@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.

[@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.

[@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.

[@88happiness]

Recently I have been feeling the increased pressure to go cashless. Some places have even stopped accepting cash. It's really annoying really.

[@gantthufft9509]

I have multiple credit cards. Pay them off every 2 weeks. Ive been doing this for 15 years and amassed thousands of dollars in points. If you are responsible it will work in your favor.

[@markm.4924]

And you probably overspent in the process and negated all those points.

[@KingEurope1]

The content on this channel is like Groundhog Day.

[@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.

[@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.

[@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.

[@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.

[@DebtFreeDad]

Credit cards can be used if a person is responsible.

[@Thorny_Misanthrope]

I am too impulsive to use credit cards. When it’s an ATM, I know where it’s coming from, and along with the dopamine triggered infusion of gratification comes a sobering awareness that money that I work for is going to need to be replaced. Using credit pushes your retirement out, like a little skiff trying to make it to shore being blown out to sea by the winds of instant gratification.

[@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.

[@BlueDauntless]

Love Dave’s consistency.

[@dant6067]

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

[@rashadthewealthcoach]

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.

[@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.

[@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

[@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.

[@E_Bailey]

Of course you CAN use credit cards. The benefit of using cash is that it makes purchases hurt more, so you buy fewer frivolous things. But there's nothing inherently wrong with credit cards when you're using them correctly and paying them off on time.

[@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!

[@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.

[@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.

[@-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.

[@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

[@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

[@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.

[@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.

[@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

[@cutlerylover]

Another point is we live in a technological time where less people use cash, its easier to swipe a card, and now thats not even necessary in some cases people just wave their phone and they spent money lol...I am 100000% against a cashless society BUT what if the US went cashless what would Dave suggest then? Just use a debit card? Also how about during this pandemic? is plastic safer than paper? What about all the online Christmas shopping not a single order is done with cash? having credit and credit cards is not a bad thing just like alcohol, is not a bad thing or a fast car is not a bad thing guns arent a bad thing BUT you have to be responsible with all of them to enjoy them...

[@lukecrawford7946]

He isn't against debit cards, there is no need for a credit card unless you want to spend money you don't have.

[@Brian-hd4rb]

we get it dude, no one cares if you use a credit card

[@emilioortiz4663]

Cash back

[@teiermyler4926]

Well said

[@teejlc]

@Karilovesdanny I agree...so far I've gotten around $3k cashback this yr and didn't pay a dime in interest...just gotta be responsible

[@Triniboi05]

Dave is slick. Notice he never says they didn't use credit card points, he just said they never got rich doing it. Of course not but it doesn't mean they don't save you some money though. I'm sorry but I don't make a habit of turning down free money. If I'm disciplined enough not to make it cost me by carrying a balance and paying interest, then I don't see a problem. People are able literally travel for free with points. That's money that would have to otherwise dig into your pocket for. His audience doesn't have that discipline so he makes no exceptions. The caller should have known better than to ask him this. Everyone knows what he's going to say on this topic.

[@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.

[@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. 👍🏾

[@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

[@aquafishsoup]

Credit Card is like a status symbol you’re not cool if you don’t have one, and most people are emotionally attached to it. Either you have money or you don’t, but nowadays people have the borrow card unfortunately.

[@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

[@lindabenson8497]

this is really helpful for my situation

[@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...

[@suzannas.4965]

Talking about cruises. I'm just an average person and while on an Alaskan cruise I found this interesting. They were selling tickets for people to win a cash prize at the end of the cruise, and I bought a few tickets at the beginning of the cruise. Each day the number of tickets they sold went up and the price per ticket went down and they were saying the more you buy the better chance you have of winning. Well, I DIDN'T buy MORE tickets because I was pretty sure it was a total waste of money since I felt the MORE tickets in the bin to pull from the LESS chance I had of winning. Yet they successfully got people psyched up to buy more and more tickets.

[@christianherrera4729]

No

[@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.

[@pixelzpusher]

I've had multiple credit cards for twenty years and have gotten free stuff with points worth thousands of dollars and I have zero debt. That study didn't interview me.

[@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.

[@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.

[@SigaramRayvanth]

Thanks i knew about Michael Ross! He was my professor in Oxford and told us about Vectra!

[@gabor4509]

VectraCoin algorithm everywhere :D

[@patrickcrandall8683]

Dave should talk to Graham Stephen

[@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?

[@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

[@nineballjunky]

I think Dave's point is that no matter how disciplined you are there are times when you will give in to temptation. Buying stuff you don't really need and justifying the purchase because you are getting cash back.

[@bryanwestover9357]

Dave gives good advice for the masses, many people simply don't have the discipline. Those of us who have used credit cards for every purchase over 30 years without paying 1 cent in interest don't have to ask permission, we have proven we have the discipline. It's a personal choice, do what works.

[@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.

[@st.jimmy0244]

One of the very rare things I disagree with Dave on. I have a credit card, and I have it set to pay off the full balance every month (and I always double-check to make sure it's paid). It's essentially a debit card with cash-back rewards. I agree with Dave that you won't get to $1,000,000 off of it, but 1%-2% is better than zero. I think the reason Dave is so against them is he talks to so many people who use them irresponsibly. If someone's been doing AA counseling for decades, they're probably going to say "no one should drink alcohol". As for the credit card companies knowing everything about you, I agree it sucks, but the government already knows everything anyway and I doubt that CapitalOne can be more vicious, greedy, corrupt and amoral than Washington DC.

[@Jay-py1ow]

LOL atleast be honest Dave..you didn’t go bankrupt because of a credit card to get a good credit score (if you’re disciplined you’ll use it minimally for that purpose), you lost everything everything because you did horrible high leveraging short term debt that had to be paid within like thirty days. I swear people don’t even look this stuff up 🤣

[@coronayup]

My sister and her husband came back east for a family trip. It was first time the family had gotten together in 30 years. They rented a car to get from the airport to the beach. They were very proud of not using credit cards and paid for the car rental with a debit card. They intended to use their debit card for meals and expenses during the trip. The car rental company processed the total amount of the car rental from their checking account, and they had no money left in the bank for the trip. A credit card wouldn't have wiped out their checking account balance.

[@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.

[@jesusbowls]

I have never paid a dime in credit card interest, and having a credit card has never caused me to buy something I wouldn't have otherwise bought. Thanks to credit card benefits, I have flown all around the world in first-class "suite"-style air accommodations, have stayed in beautiful hotels that I'd never otherwise pay for, enjoyed room upgrades, hotel credits, etc. Dave's advice to eschew credit cards is generally good advice, but disciplined people can reap tremendous benefits through the use of them. This is not even to mention the fraud-protection benefits of a credit card compared to using a debit card or cash.

[@Only2GendersCommonSense]

Great point. Just curious, what kind of credit card(s) do you have that allowed you to reap all those benefits?

[@jesusbowls]

@@Only2GendersCommonSense check out the Churning subreddit at Reddit.

[@achavez78]

Dave always uses this answer to credit card questions and it's out of context. What he means is he has seen how so many people have used credit cards irresponsibly and have suffered devasting consequences, and as such does not endorse the use of credit cards for any reason. Instead he insults the caller's intelligence assuming he's using a credit card as get rich scheme.

[@richard1113]

Dave a great guy but he keeps using this false narrative that absolutely no one has ever said "I got wealthy from using credit cards". Instead, they say I got 5% cash back on items I was ALREADY going to buy. Personally, no, I do NOT spend more on credit cards than I would otherwise. I feel the same pain paying for stuff. The only difference is I don't get totally ripped off by handing someone cash and they saying I never paid them.

[@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.

[@Alive_N_freeridin]

I think the point of having a rewards credit card...especially a travel one with airplane mile bonuses or other free flight perks is a good tool to have when you're getting out of debt (responsibly), you could basically pay off an airline reward credit card immediately after using it for EVERYTHING every payday and possibly never have to pay for a flight again or at least come close.

[@cryptoflippodcast]

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

[@danielsinger6722]

If your cheap as hell you can do it

[@VTmyET69420LaTesla]

Dave assumes you're an irresponsible child that can't pay off their statement balance in FULL every month. If you actually are a big boy or girl and have discipline, set your card to auto-pay your statement balance in full. Credit cards can make you wealthy. You can build a high credit score by paying your card off in full every month and having a low credit utilization balance, High credit scores translate into low interest rates on mortgages and car loans. Credit cards can also save you 5% on every purchase, which adds up to tens of thousands of dollars saved over your life. Imagine investing tens of thousands more into your Roth IRA over your lifetime.

[@anniesshenanigans3815]

tbh if you are calling DR you might have a problem...

[@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.

[@kevinalmiron8693]

Using a credit card is not about making you a millionaire, that's not what the guy was talking about. Totally missing the point!!

[@rons.6683]

👍🏾

[@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.