Why Credit Scores Are Completely Bogus!
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- เผยแพร่เมื่อ 7 ก.พ. 2022
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For a moment I hoped this was going to be a Ramsey Rant. I love listening to the Ramsey rants. When do we get a new Ramsey rant?
Same ! I want to call in just so Dave will start yelling.
That's why I clicked so fast. 😫😂😭
It's one post up now. Lol 🤣
Ask and you shall receive 😂😂😂😂
That is crazy. Rental car place would not trust Dave Ramsey to rent a car from them 😂
I have a zero credit score and no drivers license. I have rented cars recently.
@@christennant3421stealing cars is not renting
That shows how crazy the world has become. America focuses on one number that's made out of thin air. It's a system designed to take as much as possible from you.
Credit scores have nothing to do with your integrity or the amount of money you have, just how much you love paying interest to the banks.
I worked at a highly known insurance company (rhymes with Date Darm), love Dave, and want to follow his rules. Sadly your credit score rate has a big impact on insurance most people are shocked how high their rate is when they have no accidents or tickets. It is because its all about credit score and how often you switch companies.
This is a great example of where Dave can take things too far. In a video intended to show how you don’t need credit, he lists multiple examples of how having no credit has negatively impacted him. Keeping a good credit score might not be necessary, but it can sure make life easier. Just don’t go into debt.
The negative impact of not having a credit score was YEARS ago, not now. He explained quite clearly that 20 and 30 years ago--BEFORE the use of DEBIT cards and Internet--he encountered problems. But now, it's not a problem anymore.
@@helenhilton2158You wanna watch again? He said he pays more in insurance NOW because he has no credit score.
You can’t do anything without a credit score now
@@helenhilton2158 did you miss
The part where he says he pays more for insurance right now because he doesn’t have credit?
Where's the negative impact in paying more for iinsurance?@@OhYeaMista
I would like to hear more about the bankruptcy story of Ramsey at 28
I use a CC for online purchases n pay in full. No way I'd link a debit card online.
That's fair. You know what Dave would say about that. 😆
Set up a separate debit card account that you can add money to with a maximum amount that you could could afford to lose
I've had two debit cards that had bogus charges on them and the bank covered them. I was out nothing.
I only use my credit card very rarely and I only use it for food and I pay the balance whenever it appears. Ive been using phsyical cash money for my personal expenses cuz that's way easier ot budget for. Automate saving, manualize spending
The reality that very few people can pay cash for a reasonably nice home is a major red flag for the American dream.
Its your fault n your parents fault u shud never move out unless u saved up enuff to buy a house we do stuff dumb n backwards your 18 get out!!!! That will always fuk us over
What's the solution ¹live in a 2 income home, ²rent, ³move to a location in lower demand.
When have they ever? Back when homes were $10K people were making pennies an hour. You've always needed a loan to buy a home. I don't see anything wrong with auto and home loans. A loan to buy a TV? probably shouldn't buy the TV.
When was there a period of time where most or even a high percentage of people could do that? I agree that housing has gone way up and is out of hand, but even when prices were lower and more reasonable most people could not pay cash for homes.
Dude, very few people can pay cash for a new pickup truck, much less a $300,000 house with one bathroom.
I’ve got 1 credit card. Use is and never go beyond 30% of the allowance, pay it off in full at the end of the month, did that for years and credit score is good. Easy.
If you pay it off every month, you can max it out every month. You don’t need to keep the utilization under 30%.
@@fattysgarage1754 I know.
@@fattysgarage1754You still need to keep it under 30% before the statement date
That is his budget for that card. He can but he is sticking to his budget. ;
I only use mine for groceries and that's it. The balance gets paid whenever it rolls in
I make over a 100k, very to little debt and my wife is on disability and has CC debt and my score is lower than hers. A complete and utter scam.
If your wife has credit card debt then you have credit card debt too...
How is it a scam, you make over 100k and have disability income, pay debt off.
What's your debt to credit ratio? If you don't know the answer to that simple question then that's the reason you have a bad credit score.
I have a friend who teeters on the brink of financial collapse. He is literally totally screwed if he gets sick and can't work a week. I have little debt with a few bucks on a cc. His credit score is near 800 while I scratch 700.
@@majorlagg9321 makes no fucking sense huh
Let your score drop to zero or disappear, but you’re gonna pay more for insurance, will have difficulty renting an apartment, and your options for a home loan will be severely limited. It’s called ‘The way it is’
“The way it is” can be altered, but you sheep would rather just passively accept your oppression lol
It's called "America sucks, find somewhere better to live".
You won't get an apartment, they will think you have a false identity.
This is because your country is actually ducked because the government is working against the American people
What is Dave doing at 5:50?
scratching his nose
Talking
Lol.
Pushed the tip of his nose, nope not picking it ;
So credit score yourself into making it harder for yourself to get anything, in a system where literally everything and everything is built on having a score or you get penalized with higher rates and down payments, and even utilities look at scores nowadays
In some states you don't need to have liability insurance if you can prove you have financial resources.
That is a horrible idea these days. The cost of claims for serious injuries and fatalities is through the roof.
I have a mortgage, and annual operating/crop input loans for farming, re-paid in full every year. All machinery is paid for. A few years ago, I was around 800. Recently asked my banker if he knew what it was now. IIRC, he didn't even check. I must be such a good customer he doesn't care. He made sure to tell me if I needed a loan for something else, to let him know, lol. I hate borrowing every year for it, but farming takes vast amounts of capital to be put into your products for a few months or longer until you can sell them. As an example, the crop inputs (seed, chemical, and fertilizer) are prepaid for around the new year to get a discount before spring rolls around, and if you sell at harvest, you get the money back in Oct./Nov. If I keep the grain to feed to hogs, almost all of it would get into the hogs sold by Sep., but a small amount would feed the new batch of pigs via feeding lactating sows in Sep./Oct., which would be sold the following March/April. So at the longest, 28 months from prepaid crop input to last hogs sold that utilized the corn. And no matter how cheaply I live, farming makes such a small amount you can't save enough to get out of the cycle.
Need good credit to get a job these days. Most companies that pay more than minimum wage will run a credit check in a pre employment setting. It’s a way to judge someones character
I needed this video!!!! Thank you!
You can do prepaid for cell phone and pay before the month instead of after and they won't check your credit.
Why would these people preach no credit score for us when most of us cant afford anything without a good credit score. Bogus
Credit scores are literally the reason most people can't afford anything.
@@amireallythatgrumpy6508idiots don’t get that, don’t speak the truth just let them be slaves
So if u have to buy something on credit other than a home u can't afford it and should wait til u can.
Maybe the reason you can't afford anything is because you keep paying interest.
I love Dave as a voice for financial behavioral change. If you can't get your behavior in check, you will never win with the details of your finances. Once you master the behavior, branch out and listen to other reputable financial personalities and filter out the BS that you may hear with the foundational knowledge and skepticism that Dave teaches.
Disagree
Listen to The Money Guy Show once you get out of debt.. wayyy better advice
I'm interested to see how paying off my car loan affected my credit score. Haven't bothered to check yet, just took money from savings and paid loan off.
While I understand were the advise is coming from the reality is your credit score is used for a lot more than credit. If you are an owner of a rental property and have two applications with identical income and rental history but on has a score over 700 and one is indeterminate which one do you rent to? Credit scores have a ripple effect on all sorts of things from how much you pay for insurance, your ability to get a rental, to how much deposit is required to turn on your electric and internet services. I don’t advocate for intentionally owning debt to raise your credit score but unless you are well enough off to not need to worry about the ramifications I am not sure you let it drop to 0 either.
I have frozen my zero score with no problem!
4:40 Good Lord John, this may be the dumbest question ever…
How can I submit a question (not asked previously as best I can tell)?
Expand the show notes above. There is a phone number. Otherwise you can ask here and get responses whose quality can be graded on a spectrum.
Which is why you should take out as many credit cards and take advantage of the 0 intro apr's, bonuses and cashback.
can you still get a good interest rate on a mortgage with manual underwriting?
Yes we were able to get a 4.5 we were originally approved for 3.5 but weren’t able to buy then due to house prices and our down payment.
That nail in the thumbnail 😬
Seems very odd that they refused to accept cash. Why was I under the impression that a business couldn't refuse legal currency. Hmm
That's a myth.
Every business online refuses cash
Nobody wants cash. They want you to sign and pay it over 12 months with interest ;)
Accept
Banks require identification to make a cash deposit. You're assumed to be a criminal trying to launder money.
Sweet - Raptor - I guess when you live right and take care of business - you can buy a Raptor and enjoy it. Wish I had started earlier in life living this way with out debt. I would be so far ahead.
you can also be a bum and drive a Raptor for a few weeks until they reposes it too, lol if your the bum you can beat it you too and not worry about paying for the damage, hahahaha of course your just not a good person but if you can live with that and the repercussions you can still enjoy a raptor...
How old did thr get out of debt and started building ?
@danielwilliams9669
Learning to spell a simple word like 'sweet' might be a place to start...
@@kevincooper4912 Thx
Love these!
So did Dave wait until he had cash to buy a house?
Edit: I was just asking, not commenting on whether it’s right or wrong.
Yes
I did. If you quit financing your life away and buying things you don't need it is not that difficult at all. Granted, I also don't need a mini-mcmansion to be happy with life and spent significantly less than most people because I don't need things to make me happy.
Likely when Dave brought his first house it was 2x the normal salary not 10x like today
Well he doesn't tell people that they have to buy their house with cash, so why would it matter?
Sounds like what people in third world countries have been doing for decades
Funny how getting a loan or credit card affects credit score as well as paying off loans and cards. Both ding credit score negatively I've been told.
Its the credit report not the score that is important. Ramsay must have had credit to fund his property empire when younger but got his ass handed to him and filed bankruptcy.
Just wait until ESG scores are fully rolled out...
@Kyle Welch already is...
@Kyle Welch already is...
Yeah. Cash is king. They will make a way for you.
Wave that around at the airport or rental car and let the law find it. The'll seize it as a asset forfeiture case and you have to prove it wasn't being used for illegal gains.
Good Evening Mr. Ramsey, I have several questions but I have not been able to find your phone number. It came up once but I didn't have a pen next to me in order to write it down. I wish that it would stay on the screen longer Please. Love listening to everything you say. Thank You and as always keep up the GREAT JOB.
When you travel across the country, the cops steal your cash and empty your debit card, don’t they?
Yup credit scores , are a reverse sycology of thinking and algorythms , designed in a way to monitor your credit applications and debt, the amount , think about it, your credit score is only going up, if you have more and more and more debt, because the companies will make more money off your debt the more you have and after a lot debt, you will be shocked to find, your score goes up by very little, ie give you enough to keep you happy, but not so much ie to keep you thinking and coming back for more.
So it's why I stayed away from debt and credit scores and you know what, 8m doing great 👍👍👍
First time I’ve ever heard him admit a flaw to his plan
I needed this video!!! thank you
So if everything falls off of your account in 7 years why pay off debt?
The title says credit scores are bogus. If you own rental property, you know that the first thing you want to know is about the future renters' ability to afford and pay rent on time. What's the one important tool that is used to confirm that? You guessed it, credit reports. If Dave has a corporation, his corporation is rated by the credit rating industries. All corporations are rated. Most of the country rely on credit. The world revolves around debt. It just the way it is. It's in your best interest to keep up with your credit score no matter what others say. Not everyone is born with a silver spoon in their mouth and most start off with some sort of debt and work toward success.
If you live in a country where people actually use your brain (i.e. not America) you laugh at the concept of credit scores. I can't believe Americans are dumb enough to rely on them. Credit is not credible.
Better yet, don't even get a home loan. I'd rather own a trailer house than have a mortgage on a mansion. Even an rv in the middle of wasteland is better than a mortgage.
Nothing wrong with a mortgage. Just pay it off as quickly as possible.
And after your trailer is paid off it is basically worthless. After your home is paid off, you are a millionaire. Do you see the difference?
@john Smith Trailers can make great first homes. Our first home was a brand new mobile home. We picked out the floor plan and chose the options. We lived in it for 3-1/2 years and sold it for just under what we paid for it. We used that money, plus a little more, as a down payment on a home. The negative is that mobile homes don't appreciate in value.
@@jimroscovius The negative is HUGE.
@@jimroscovius With interest rates being so low, I'd rather refi and invest the difference. Makes more sense...
Dave’s advice is for a target audience- broke people
With no financial understanding and wherewithal.
When you go for a job they check your credit score, don’t they?
Of course, the indebted are in the comments section foaming at the mouth and arguing to justify their debt score to make them feel better.
The only problem is we needed a credit score to rent our place. I needed credit to buy a used car. So the thing is you need a score to get a house or get a apartment or a job?
Only an idiot would rent an apartment.
It’s fake but u have to follow it so grow up and get a good score
Or find a better country to live. One that finds the concept of credit comical. It's not grown up. It's childish.
like where? (honest question)@@amireallythatgrumpy6508
When you go to rent an apartment, they check your credit score, don’t they?
Only an idiot would ever consider renting an apartment. They're not fit for human habitation.
When you have millions of dollars in the bank you can talk all the shit you want!
Only a good idea if you have lots of money
I am surprised and disappointed that Dave carries full coverage insurance.
Agreed. Guess he's not as logical as he likes to claim.
Yet another scam, a person's credit score determining their auto insurance rates, never mind that person never having an accident or ticket
I have an excellent credit score. at 23
My credit score finally went to 0 the other day. We celebrated
How long? I have stuff I paid off 8 years ago that is still on there.
I sell T-shirt’s. Not clouds.
As far as insurance and cell phones, noooo Dave, they are not trying to sell you something. They want to see if you pay your bills on time.
I pay monthly principal bill and have never in my life claimed cellphone insurance just another way to throw money away
My credit score went 65 points down because I let it close my credit card. Now I need to have it up. I need a car loan. Dave is rich but I am not. That's the difference. Now my insurance premium may go up. Watch out with Dave's advice if you are not wealthy as He is.
Nobody "needs" a car loan.
@@amireallythatgrumpy6508 If you don't have any money saved up, needing to go to work to make money and a car is the only way you'll get there, then yes, you need a car loan.
Not For Sale!
Proverbs 23:23 (KJV), Buy the truth and sell it not…
When the Bible says, “buy it”, that means get it, acquire it, invest in it, procure it and own it!
But the only way to get it is to get Jesus. Truth is not on sale at Walmart.
It does not come in cans.
You cannot buy truth by the bag, bottle, package or pound. To get it, you have to get Jesus.
Since Jesus is the way, truth and life, there can be no other way, truth and life:
Without the way you can’t go, without the truth, you can’t know, without the life you can’t live.
St. John 14:5-12; St. Luke 24:47; Acts 2:36-38; 4:9-12; Ephesians 4:5; Colossians 3:17 KJV
Nice to see a call from Utah that isn't bashing religion!!
Too many Mormon’s there
Is Utah well known for bashing religion??? That seems the inverse of the obvious.
Although I understand Dave not wanting or caring about a credit score Not having a credit score or bank account makes you look shady when it comes to buying a house or nice car for example
Know it all Dave. I like my 837 FICO and zero debt. I’ll keep my cc’s and practice financial discipline. Thanks anyway Dave.
Same. I love my charge card and all the discounts I get with it. It's served me well for the couple years I've had it.
Shut up
Sure. But people with discipline don’t watch Dave Ramsey.
They don't live in America either. @@clintonweir7609
Personally I finde credit scores annoying, since I have to maintain, I wouldn't call it debt but a diverse arrangement of annoying small bills to pay a month. And I use a credit card I pay monthly with a air mileage program, a best buy card that has 0 percent interest if I pay the item off within the limit and a low payment economical car that I absorb the bulk of my miles on a vehicle in commuting with it.
Dave Ramsey A millionaire talking to people that's making between 40K into 200k we're not in the same ballpark, He's playing in a different league so he really can't understand middle class and poor class people situations, but I guess we listen to him
I have been on the internet for HOURS looking for this one bit of information. I paid off all my debt about 5 months ago, have one open cc I don't use with a $0 balance, and went to leisurely check my credit score this evening to see it had dropped 120 points! I've been on the verge of a cardiac event all night. THANK YOU. God, what happened to information?? I wish I could make you dinner or wash your car or something, Dave.
lol. Dave’s “study” of millionaires is gospel, but other actual studies that he disagrees with are “bogus.” Got it.
Did you even listen to what he said? He explained it was bogus because they left out an entire control group.
@@justinbratton1235 Yes, I listened to what he said. Again, he’s quibbling with an actual published study but claims that his study-for which he didn’t publish detailed supporting information but instead only high-level “conclusions”-is valid. It isn’t. He is simply disagreeing with a study because he doesn’t like it’s ultimate conclusion.
I like a lot of what Dave says, but you’re drinking the kool-aid if you don’t see that he’s highly biased.
@@Laker62282 you missed the best part, Deloney agreed with Dave that the study was bonus before Dave even gave his reasoning. (And then asked why Dave even carried car insurance which is a stunning question for a guy that age to even ask) one thing I can't stand about this show is when the co-hosts trip over themselves to agree with Dave.
@@carena8478 Totally agree. They feel compelled to agree with Dave on literally everything. It makes for really uninteresting content.
@@carena8478 I think John was wondering why Dave didn't self-insure his stuff. He obviously could afford to replace it, so he could save the insurance premiums that way. Dave mitigates that by carrying high deductibles...basically catastrophic insurance.
Your credit score will not go away after 6 months even if you payoff all your bills & I wouldn't see why you would want that, higher credit scores usually open up more opportunities, I understand Dave's thing about no debt but as he said,lower car insurance rates ..etc, it would take more like more like 2 years of no activity for your credit score to go away
We all can't pay the higher rates foe no score
To say credit score is bogus followed by, I pay a higher insurance rate due to a zero credit score is oxymoron.
Yeah not realistic.
Kuch bhi 😂
Credit is necessary in todays world. It’s the sad reality, but it is a reality
in america anyways
Only if you live in a cesspool like America. Countries where the intelligent people live don't have credit and laugh at the concept
Dave has tons of money - how nice for him and he seems to have to brag about it.
he always does brag about his >200 million net worth.
Haters
You can be jealous and make sarcastic comments, or you can do what most of us are doing and use seeing successful people as inspiration to build wealth and better your own life. To each his own.
@@MichaelAnderson-wk1no It's not so much a jealousy thing for me. It just seems to come across as exemplifying a lack of humility, which is what the Bible teaches us to have as well.
Not only does he brag about it.. he advocates for the RICH not to pay taxes.
My score isn't 'bogus' its good.
If you have a score, it's bad.
So, if you drink the Ramsey koolaid, you're going to pay more for insurance. Probably several more "gotcha's" out there no one has thought of. Nice....
Pay a higher mortgage interest rate too... Dave is making money for the banks with this advice
Stay broke then I guess.
@@saulgoodman2018 absolutely true, but not being in debt is Dave's advice. They can follow the same principles without following Dave. The other comments on this thread make me believe that they reject Daves advice and love debt.
@@abrahamflores2566 Well, at least for his buddies over at Churchill Mortgage.
@Saul Goodman Says Saul the Troll. If you have no debt and a paid off house, a little more for insurance doesn't matter.
DO NOT LISTEN TO THIS NONSENSE. You need a basic credit score so people can confirm your ID, and know that you can manage your money. Just use a couple basic cards for base expenses, and you will have a great credit score, which has many benefits. He wants to trap people in his own ecosystem.
Credit scores only exists in backwards hellholes like the USA.
LOL... Confirm your ID? Then how do younger folks who are just applying for credit for the 1st time ID themselves?
@@jefferyyounce5372 Yeah right, try doing this as an ADULT and they will assume you are a CRIMINAL or a BANKRUPT in hiding. They will just reject you, as they should.
Horrible advice.
Whats bogus is telling people to be debt free. When our world works on a fiat system. We have constant inflation which forces you to borrow to buy certain things because you can never save faster than inflation. Also wages never match inflation. Sure be debt free but never expect to own a new car or a home or a boat or a rv without using debt.
No, what's bogus is thinking the world works.
Waa. What a victim. I've bought my last three cars with cash. Just bought a Tundra yesterday.
@@damondiehl5637 a victim? You are just Richie rich. Not everyone earns tons of money like it appears you are bragging to be doing.
@@chriss4365 Never made over 100k per year. Enjoy being poor.
So Dave Ramsay is rich AF.
How can this guy teach about money when he has a money tree in his backyard?
Dave is a phoney
😎✌🖖👌👍🤓
Being rich with bad credit isn’t everyone dream, I prefer to be well off and with good credit, 840 to be exact.
To do what exactly?
It’s sucks he has to give out this terrible advice
high credit score just means you're a slave to the Lender right?
Will this work for black people?
What?
Stop asking stupid questions.
No because they’ve got too much debt as they are uneducated ?
Let’s gooo 🤤👀
@@MatthewChapmanYT Racist much?
Probably not
The real reason Dave Ramsey hates credit card companies and think credit scores mean nothing is due to the fact, his credit score is wrecked and will never come back. Instead of admitting he made a mistake, he simply condemns the entire credit card industry and blames them. If you are responsible and have a high credit score, there is nothing wrong with that. I personally do not like credit cards but on occasion, I use them and pay them by the end of the week. Just don't live off them.
He has no credit score.
Dave teaches some bullshit