Why You SHOULDN’T Get a CREDIT CARD

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[@tcgtpl]

The top 2 credit card commandments are 1. Don’t spend money you don’t have. 2. Pay your bills off in full every month. Never carry a balance. If you can adhere to those, then you’re ’winning’ with credit cards.

[@desistang8794]

You will always spend more with credit cards vs debit card

[@V8Brah]

​@@desistang8794 Not true at all if you treat your cc's like a debit card.

[@lukerider479]

@@desistang8794I don’t. Always is a strong word

[@Bubbles99718]

​@@desistang8794You might

[@Jackaroo.]

@@desistang8794no. MOST people will statistically. Most isn’t everyone. Therefore you’re wrong.

[@dmana3172]

Using a credit cards always place a financial burden on you.

[@Mysticbladegod]

Agreed.

[@Mysticbladegod]

I have never had a credit card and don't plan on get one...ever. The only debt I have ever used was my student loans. I am nearly fully debt free.

[@KittyOzzyZiggy3895]

When credit card companies give you a high limit it leads to high debt

[@pdxmusl1510]

Only for people who have a complete and total lack of self control. I have a high limit. I only got close to it once because unbelievably a dealer allowed me to charge for the entire amount for a car. Then I immediately paid it off so no interest. Giving me an insane number of points that year. Otherwise I have never been close to my max. Nor will I ever be unless I live beyond 100 and they don't raise my limit. The devaluation of money might catch up to that limit. But that's the only way.

[@DaveMartinez-o1s]

It's all about self discipline credit credit cards can Be advantageous. And of course they can be a big curse. But that is up to you what they become.

[@johnnyappleman7159]

So, I'm an idiot that has seven credit cards. I have been denied countless times for premium cards which I got through reconsideration the idea that everyone loses is silly banks would have no problem issuing credit cards wildly as a super prime with no debt issues many banks don't want my business and it's a fight to push to get new credit card for ridiculous sign up bonuses. I'm a terrible customer since I don't carry a balance and only put spend on cards with active SUBs. Just my experience and mega anecdotal but in all seriousness if you aren't terrible with credit the banks don't want you and George doesn't mention that since it falls into a gray area where the Ramsey plan relies on a definitive world view that should not be questioned or altered.

[@adamseidel9780]

That is not true at all. If you have above average credit you can get any card you want.

[@yesl9893]

I pay my balance on credit card bill every Friday. Keeps me from making behavior mistakes and keeps me in touch with the bills. Rewards go right into my Roth IRA and I buy use it to buy that dollar amount in my total market stock fund. This is my way to tell the bank MAN to FU and reinforce it with a double pump.

[@Levi-my5mz]

Same, I pay my credit card off weekly. I just have it for the cashback. I cash out every 6 months which is about $150 dollars.

[@Prettyflaco72]

Dude on the side really wants to show off his watch😅

[@TopShot501st]

Why else would you wear a watch in 2024?

[@crashingcoyote]

@@TopShot501stI wear a Apple Watch

[@TopShot501st]

@@crashingcoyote case and point show off money or show off tech.

[@mr.mystiks9968]

These hosts don’t actually know how to help the average American so they peddle Robert Kiyosaki’s nonsense of “take on more debt”.

[@markgordon6717]

If the people that actually benefit from credit cards don't use them, the credit card companies aren't going to stop taking advantage of people. The credit card companies will likely just profit even more from their exploitations.

[@billdestroyerofworlds]

The reason Dave Ramsey and George Kamel are so anti-credit card is because everyone who uses their program and calls into their show are not the type who know how to manage credit cards well. They have to take such an extreme position if they're going to help their viewers because their viewers have so much self-justification about their bad credit card habits. This is essentially like talking to someone who regularly deals with alcoholics about the benefits of moderate alcohol consumption.

[@Jackaroo.]

Yes. 90% of their viewers make bad decisions with credit cards. They are trying to appeal to and help the vast majority, not the financially astute minority.

[@amireallythatgrumpy6508]

*99%.@@Jackaroo.

[@Mcyoloswaggy69]

Not a legitimate comparison at all. To use your example, it would only make sense if the vast majority of people were alcoholics. When in reality a very small percentage of people are alcoholics. 95%+ of people are terrible with credit cards and will lose money using them, especially in the long term.

[@whothou]

except we all are alcholhics to satisfication/gratification the people who know how to manage or delay that desire are the ones who win. Those that can't spend more....(drink more) until they're 6 feet under) @@Mcyoloswaggy69

[@Adiscretefirm]

When him and Dave are onscreen together they claim 80% of people don't pay their balances

[@TopShot501st]

Credit cards are bad for most people because most people are financially illiterate or financially impulsive. I have never paid a dime on CC interest or fees, and basically just funnel purchases I would have made anyway through them like groceries and airline purchases. People use credit cards as emergency funds and use the term emergency loosely.

[@matejpavelka4153]

Graham is a known proponent of credit card culture so it's interesting to see his reactions to George's remarks

[@matejpavelka4153]

@@TheMrPorter for example making a video talking about opening credit cards as soon as you can to build up your credit score fast and use all the "benefits". At least that is what I see as a resident of a country where majority of people only ever had debet cards, with older generations still going to the post to recieve pension

[@thecapone45]

I’m glad that he’s being fair and not the sort of guy to make “gotcha” comments and start just ripping into the other guy.

[@claytonelofgren]

Both of them are right. Even if you pay it off in full every month or weekly you might still spend more since it’s plastic not cash. Credit card rates 20-30% now. So for a $14,000 balance is about $3500 a year. About $291 a month in interest. Still not sure how evil credit card companies are because a lot of people would be screwed without access to any credit. But things would also be cheaper if people had less access to credit

[@DEBTFREEMIKE769]

Excellent point. People don’t realize that buy now pay later also drives up prices even if there’s no interest.

[@thecapone45]

I’m starting to not agree with the whole “it’s easier to spend plastic and not cash”. I’ve often myself, or others, spent cash and not felt it hit hard because it’s not something I check like I do with my online balance. Not to mention the whole “I paid it in cash so it was free” trend, where people felt like they didn’t really spend any money because it was cash, and not their credit/debit card.

[@claytonelofgren]

@@thecapone45 I agree and see those points of view. I feel that way with cash sometimes

[@middlemayhem]

its not that hard to use credit cards. just pay your bills lol

[@WPaKFamily]

just

[@middlemayhem]

@@WPaKFamily like only use the card when you know you can pay for it. Eventually they give you like 30-50k limit and you can keep 1,000 on it withought to much concern and in an emergency you can use like maybe 5k of that if needed. Without destroying your credit anyway.

[@JonsCreditAndTravel]

I agree with George for people that cant not spend what they dont have, cant pay off their bills in full, etc. If you are disciplined and you dont fall into the traps, you win. Points and miles for travel with responsible card use is winning. The being completely anti credit card stance from Ramsey/George is too much of a blanket statement.

[@AmericanPatriot-dn7iy]

I don't even care about cash back or any of that nonsense. I use a card for one reason which is for my score so I can buy real estate. I buy stuff and then I pay it back immediately. I never buy something if my checking account doesn't have the funds.

[@DaveMartinez-o1s]

You're passing up on a lot of potential value. It sounds like your discipline concerning your spending. But why not get the benefit if it's there for you.

[@thecapone45]

@@DaveMartinez-o1sbecause the CC companies WANT you to do that. I just got my credit card but I don’t see myself using the card a lot. Those incentives are to get you to spend more and more money. If there’s shoes on sale and I “save” $40, sure I saved” $40, but I had to spend $200 to get the sale. So I’m still out $160. I’d have been better off not spending the money to begin with. The $40 seems better because you get that in cash back. You SEE it come into your account and feels more real than the $40 you DIDN’T spend.

[@JB-sz4wy]

I agree I don’t use the damn things, couldn’t be bothered to pay them off it’s another chore

[@swapw]

Intellectually, most know the means of how to utilize rewards and why they are beneficial if the game is "played" right. In practice, very few if any track their expenses every month and the majority of Americans carry a heavy credit card debt. Credit card is bad news. Not using it is not realistic, but if that's all you use, it's a good idea to mix it up to keep your expenses under control.

[@danhicks1232]

Law 40 in The 48 laws of Power. "Despise the free lunch". Credit Cards too me is a great example to that law.

[@cornellcornell1]

They’re not free. They’re earned. We make them money every time we swipe and in return we get points. It’s mutually beneficial. Besides, cc companies know that a percentage of people will be irresponsible and hold a balance. Therefore whatever points they give out they get back from all the interest payments they receive. So for people with basic self control and don’t spend more than they can afford absolutely benefit from cc

[@tomTom-lb5cu]

Credit cards are good to have only for someone who is financially responsible to pay it off monthly. It may help you get a mortgage. I’ve used a credit card to my advantage for over 40 years. Also have a debit card. I hate carrying a lot of cash, in my state it’s not legal to carry and it’s hard to get a carrying license permit. I always did get cash back monthly not that I even got it for that reason. Buying stuff on Amazon with a credit card made it easy to get money back the 1 or 2 times I almost got ripped off by a vendor . It’s just an individual decision imho.

[@Ritchie_The_CEO]

I’ve been waiting for this one!

[@thefozzybear]

There are credit rewards and benefits and there's credit card debt.

[@DeneaceReel-fq8wp]

There's only ONE RULE when it comes to credit cards, pay day loans, etc. 1) DON'T SPEND MONEY YOU DON'T HAVE!!!!!!!!!!!!!! Credit cards/pay day loans are like casinos, the odds are in their favor, ALWAYS. Don't be unwise, if you can't afford to pay for it, don't buy it; it's that simple.

[@RaceMentally]

I’m over here with an 800+ score where millions goes through the bank and have $100k-$150k in that bank and can’t get a $25k credit card. Meanwhile navy fed I text them I want a card or up my limit and they text me back here you go. Cal bank and trust is a pos and about to yank my accounts meanwhile walking in with a million cash showing what they lost out on.

[@JoseFlores-xh5cj]

My monthly expenses as head of household of 4 people is around $2k. Having 5% cashback on most expenses is around $100 a month of cashback. I pay the balance every Wednesday which is when my deposit hits, and only cashback is what I use for vacation/fun.

[@jamess.2491]

I just don’t understand how hard it is to not spend money you don’t have and set up autopay. I mean it’s like the basic level of financial responsibility.

[@JGComments]

At least the debt Graham has is tied to a productive asset. Most people ruin their lives because of BS spending.

[@EvanH1122]

If you pay your debt, credit cards are fine. If you can't, avoid credit cards. Its simple

[@ahhshytson]

lol been using 2 credit cards for 3 years now and paid off my balance every month.

[@kevinlam4773]

George might have to go vegan if he learns where his chick-fil-a is coming from.

[@beckettodegaard]

Please just admit credit cards are good for the other 50%

[@taurinenrgy]

Credit cards only exist because they get interest at the end of the day.

[@TopShot501st]

They make most of their money on merchant fees.

[@xylo5750]

@@TopShot501stno they do not... it was discussed in the video... are you paying attention

[@TopShot501st]

@@xylo5750 they're literally fucking wrong. Go look up AMEXs financials and you'll find they make the majority of their money from merchant transaction fees.

[@evr0.904]

2:50 "The game isn't set to defeat you in credit cards..." Yes it is. Look at the earnings report of literally any credit card company.

[@SneakyJared]

Those earning reports are because of people lacking responsibility and the discipline to pay off their balance in full every month. Too many people let emotions dictate their spending and that's why these companies are winning at their own game. Pay your balance off each month and you win the game.

[@evr0.904]

@@SneakyJared My point still stands, the game is set to defeat you. Nothing you've said refutes that. You've arrived at an illogical conclusion, assuming you've even read the reports. You're just another sheep being led to the slaughter. You don't win the game with 1% cash back and points. You win by eliminating your reliance on the system. Play stupid games, win stupid prizes.

[@GarbageGoober.]

@@evr0.904I think it’s more accurate to say that everything in the system is set up to lure you into making bad decisions, but if you know how to avoid that, you can do well.

[@Lolatyou332]

I have a credit card because I absolutely have to (cloud services require credit cards to help prevent payment declines when for critical services). I just told them to only give me a 500$ limit and I just use it for the few cloud services I use for hosting that require it. I don't think it's as bad as George and Dave try to make it out to be. I feel like they just have an anti-debt brand so they have to hold these opinions. I agree that most people shouldn't be using credit cards though, otherwise the interest rates wouldn't be so high and they wouldn't be as profitable (other than the 3%+ transaction fees they do).

[@wjgranger5]

I like the Money Guy's description of credit cards. Credit cards are like chainsaws. If used properly, they make your life immensely easier. If used improperly, you can seriously hurt yourself (financially).

[@rachelharrison7961]

Of course the CC companies are going to try and entice you. The local supermarket does the same thing with their end cap displays and “sale” items that aren’t really cheaper than normal. That doesn’t mean I’m going to stop buying groceries too. Knowledge is power.

[@Die__Brad]

Yeah it’s about how you use them.

[@adamseidel9780]

@@wjgranger5I think another good criticism of credit cards - and I am a heavy credit user and points chaser while having no consumer debt - is that when you’re young and don’t have one yet, you don’t know if you’re a person who can handle a credit card or not. A huge percent of people can’t handle it and go in debt or overspend with the cards. Since there is really no way of knowing until you take the risk and the downside is large… why take the risk? Maybe you won’t get addicted to heroin and will be able to have a good time, but why take the chance? I think that’s a fair argument.

[@Eddie100official]

Didn’t watch the video but my takeaway is buy and hold for 235 years, live off 0.1% dividends, never use a credit card and don’t spend $0.75 on coffee. GOT IT!!

[@Jackaroo.]

Actually Ramsey advocates for a rather aggressive dividend withdrawal plan. He suggest 8%, which is statistically pretty risky. 4% is statistically much safer and is actually pretty realistic once you have around $3 million in your investment portfolio.

[@Eddie100official]

@@Jackaroo. I statistically calculate that a person statistically wouldn’t see that statistical 3 million in their lifetime using that statistical plan. Maybe statistically great grand children.

[@Tre2cool96]

The whole moral argument seems meaningless to me, unless you also apply it to other areas of finance. In the stock market, their are buyers/sellers and winners/losers. That same moral argument can be used against the stock market, but everyone still advocates for investing in stocks and retirement funds.

[@pdxmusl1510]

Not really. So in the stock market. Your trading bits of ownership. It's more like a collectable. Sure. Maybe a poor person might come to you with all there hard earned save money and buy that vintage magic the gathering card you have. And it may seem weird because a poor person is buying it. But if the purchase works out well. The poor person will sell for more and be able to slowly climb out of poverty. Whereas a credit card... they are paying interest on something and struggling to get it paid off. They are not thriving. So it is quite different. But yeah. I don't really care about the moral argument.

[@CurtisMcClelland]

I have 32 credit cards and 0 credit card debt. I can’t tell you how many free flight and hotels I’ve received because of these cards. Definitely feels like a win to me.

[@nateholio1]

I agree with George on a lot of things but the credit card isn’t one of them. I’ll take my 2% back on my sofi card and 5% back on my Amazon card all day long. Free money.

[@eatpigsnot]

credit card companies do not give away free money

[@Jackaroo.]

@@eatpigsnotyes, they do. To the people that use them intelligently. The dumb people subsidize the smart people.

[@nateholio1]

i've gotten 100's (prolly a couple thousand in the past 10 years) of dollars in free money over the years. Just pay your balance each month and enjoy the free loot...@@eatpigsnot

[@Tre2cool96]

@@eatpigsnot Free to me lol. Yes someone is getting the short end of the stick and it isnt the credit card companies.

[@eatpigsnot]

how is it free to you? everyone spends more using credit than when using debit or cash. certainly not on every transaction, but overall, in the long, everyone using credit does. @@Tre2cool96

[@DamonMoves]

The straight up truth is sure you can manage credit cards, debt, and almost anything. BUT you’re always one emergency, one huge car repair, house repair away from possibly having to charge it because you don’t have the money. And that’s where the temptation lies. If you don’t have a card, you can’t do that you’ll have to find another way. It’s just better not to have that risk or temptation there at a swipe of a card. That happened to me in my early 20’s for my transmission for my car. The balance grew and multiplied and I wasn’t able to get rid of it until I was close to 40. Just not worth it, a piece of mind at the end of the day will always win.

[@braveheart9658]

I understand the danger, but I have never missed a payment and have 837 credit score at 23. Why not get a % back on expense that our necessary? Free money at the end of the day.

[@eatpigsnot]

the best credit score is zero. and why would a credit card company give away free mioney?

[@Bubbles99718]

​@@eatpigsnotCredit is simply a tool. Understand it and it's effective. To simply outright dismiss it is strange

[@braveheart9658]

@@eatpigsnot Let's say I buy my grocery at Costco that means the credit card compagny charges a fee to Costco. No fee is charged for me. I get free cashback. A 0 credit score is not possible lol. Do your research

[@eatpigsnot]

you spend more with credit than cash or debit. everyone does. it is like eating more at a buffet vs KFC. a zero credit score is possible when no money is borrowed@@braveheart9658

[@Jackaroo.]

@@eatpigsnotthe best credit score is over 800. If you can’t be financially responsible with a credit card, that is your problem. I never carry a balance, only use credit to pay for gas and groceries, and in two years I went from no credit score to 762. Now I qualify for the best interest rates for mortgages.

[@garynapoli6244]

If you think that’s too unethical, look at what currency creation does to lower income groups.

[@ArdillaINC]

Now the moral perspective to me was a new argument against credit card usage. Very interesting point of view I had never seen presented. Thank you for sharing !

[@pdxmusl1510]

Im curious on why grahm reacted the way that he did about Capitol one. Calling it a beginners card. I mean i have 1 credit card. But i don't shop around for them. So im not sure what hes trying to get at.

[@Snowcloud6]

Credit cards are great. Be responsible and an adult and you can use them to benefit you.

[@ReeLSpirit]

just pay it off right away. you can get 1-10% cashback depending on the card + sign up bonus

[@good_guy_of_guit]

Today, debit cards do exactly the same. CASH IS KING 👑. So be a king in your finance not a slave.

[@samuelgorla6417]

This moral superiority is beyond lunacy. There are cases where your Employer gets money wrongfully from someone and then pays you a salary. So are going to decline the salary? The roads that are laid used some druglord's money, so you can't drive on those roads? See this argument by George is not justified. Folks, if you use a credit card, make sure to always pay on/before time. If you can't pay it, then cut in half and trash it.