Why Is Having A Credit Card A Bad Idea?
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- เผยแพร่เมื่อ 2 ก.ย. 2015
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Another thing to think about with this topic. We prioritize paying debt over saving money. Even when we do pay off our credit cards in full every month, we have to pay that before we put money away into savings. And, in many cases, after you pay your card off in full, you look at your checking account and say some along the lines of "Well I can't save anything because my balance is too low already".
When you don't have to pay your credit card, you open the door to save more of your money.
Good points
Exactly! 👍🏾
Yes I had a credit card for a year and it started to hit me
The loyalty people have towards credit cards just puzzles me. I really don’t get it. When I had credit cards I paid them off monthly too until I didn’t/couldn’t. It’s like Dave said your playing with snakes eventually if you play long enough you WILL get bit.
Or pay it every time you go home before sleeping, so you feel the pain, stop extra spending, and leave one small charge for the reports.
Just don’t spend money you don’t have. You can’t blame your financial irresponsibility on credit cards.
It took me 3 months for my bank to return money that was taken fraudulently.
Exactly. And for this reason, I will continue to use my credit card, especially at gas stations (where credit card skimmers are often found) and when traveling internationally. My credit card stays.
When I was a kid I told my mom credit cards didn't make any sense because of the fact that you have to pay the money back. To me, it seemed easier to just save up the money you need, but I may be biased because I don't like to owe people money. It's the same reason why I don't like loans. A decade later and I'm still using a debit card, though I may try to use cash from now on.
i use credit card for every purchase
Lol then she doesn’t understand the concept of a loan then
Totally agree with Dave here I don't trust myself with a credit card. If you don't have cash don't buy it! No item is worth getting into debt for
Birkinbag09 Not even a house or a car?
Hello _ You can live without a car, just rent an apartment close to where you work and save up for a house to pay in cash.
SinonMercer I know that without a car or a house. What I'm saying is that car's and houses are generally thought of as worth getting into debt for. (Atleast when it's a reasonably low-interest loan, I'd never suggest taking out a high interest loan)
Hello _ Dave does support 15 year low interest mortgage, but getting a car loan is DEFINITELY a bad idea.
Hello _ getting a car loan is really dumb since you can always find a reliable car under $10k
Debt isnt nothing to play with!
RIGHT!!
spencer brown so true but there’s a lot of idiots who can’t comprehend that.
@@partyfavors9238 You're a idiot if you cant control yourself, not If you use a credit card for the benefits and to improve credit score. Now you may listen to everything that he says but one thing you may not of noticed but dave kinda treats alot of situations like everyone is a millionaire and can buy homes in cash . You need good credit to get a mortgage on a decent home.
WU TANG
Debt is fine if you have it under control and you can make the payments, let's say a car loan.
What I respect about Dave is that although I think that his natural predisposition is to be loud and angry when he spots that someone is being stupid unnecessarily (just a feeling I got from the rants) he is very very calm when his callers call in, he controls himself really well.
If you need Dave's advice, don't use a credit card.
If you don't need Dave's advice, use a credit card.
Super simple, no need to argue.
if you don't trust yourself and are not a responsible person you shouldn't even have one credit or debit card, but on the other hand if you are a responsible person and have a good handle on not buying everything you see its ok to have one credit card and one debit card, but to each his own.
They always get me when they call in for his advice, he makes a statement and they go, "Well..."
Dave is a legend and awesome!! I have learned so much from him. The world is full of lies, we just have to figure out the truth.
Credit card gives me a mind set of enjoy now and worries later. But why keep my self in worry cycle. No more, I don't want to deal with tomorrow, I want to deal with finance now and daily.
"All of this so you can get a $35 hotel room when u make $200k a year?"
"There's no point in being penny wise to be pounds foolish." - T. Sowell
I respect Thomas Sowell, but I disagree with a good part of what he says.
Gold quote!💰
I'm following Dave's ideas to eliminate my debt.
Tomorrow, I will be making the last payment on a credit card that got charged-off in 2015...I ignored it until April of this year, when I was offered a 50% settlement opportunity. I was going to cancel my credit cards until I realized something though...
I went on a mini vacation and, of course, needed to rent a car. I had no idea about all the hoops I had to jump through if I wanted to use my debit card to rent a car...I needed two current utility bills in my name, my most recent paystub from my employer, plus pay for their insurance at $20 extra per day. All I can say is THANK GOD I still had my credit card...I got to bypass all of those requirements (which I'm not able to meet because the utilities are in my mom's name and I pay HER for my half, and it would have taken me hours to get my paystubs). I also got to bypass the enterprise insurance because my credit card provides me that benefit. My credit card saved me MOUNTAINS of inconvenience and $100 that I would have had to spend in additional insurance. Oh...and then I earned rewards points on top of it all!
The one issue I would raise regarding credit versus debit card is if fraud occurs with your debit card and causes your checking account to be overdrawn and/or bills not paid due to insufficient funds, it can be a pain to get all the late fees on multiple bills cleared up. You may end up having to deal with multiple late charges with numerous companies versus the one credit card company that was fraudulently charged.
Then you are at an unscrupulous bank. Plus debit cards, legally niw, carry the same protections as debt cards.
With fraudulent transactions on debit cards, it may take much longer to dispute and during that process your checking account is truly out of the money which you may need immediately thus you resort to borrowing and paying interests. Resolving fraudulent transactions on credit cards are super easy and CCs are great buffer protecting your checking account.
Cash? Worst protection, you lose them then you lose them for real
100% agree!
Or just put the money not on the debt card but a separate account and transfer when u need it
Having a credit card and paying the balance in full each month is a great plan for some people, but not for me. It really depends on individual circumstances. The problem with credit cards is they make it hard to stick to a budget.
Hey. At least you admit it. I used to be the person that had issues with credit cards. And I have a finance degree... yikes.
Got myself in a lot of stupid trouble, like Dave. Bankruptcy, car repo, you name it.
That experience set me straight, but not to an extreme. I now only use a credit card as my debit card alternative to earn cash back and points. Pay it off before the billing cycle (or sometimes as soon as I get home).
I agree with you.
your lack of responsibility makes it hard to stick to a budget
Thr problem with credit cards is the interest you have to pay them back is ridiculously high 19 to 21 percent and some even higher..it's criminal
This is why we switched to using debit cards several years ago! Test yourself....place a $20 dollar bill in your pocket or purse and see what "feelings" and "thoughts" about that purchase are when you go to purchase items like a cup of coffee, lunch or even gas for your vehicle. It might shock you!! Knowledge is power
What about gift cards?
Veerendra Jadhav I don't disagree but life needs to be structured. A budget is a structure for your money just like a schedule is a structure for your time. Everyone's method and structure are going to be personal and different but some kind of structure is essential. I pay with a combination of cash, debit cards and gift cards but everyone's structure is going to be very personal. Dave says on his radio show "that's why we call it personal finance".
Bill and Beth Russell its funny you bring up gasoline, a necessary item for most. I fill my tank up once a week because It is necessary using my cash back credit card. It needs to be filled up anyways. So you are saying If i use cash to buy gasoline i wont be tempted to fill it up?? I understand some people cannot handle credit. But Ramsey blankets everyone.
I disagree with the fuel part. Everytime I go to a gas station I fill the tank all the way up. It's a necessity for my car to take me to work and school. I'm not going to waste time AND gas, going to a gas station and putting a quarter or half a tank at a time.
Maybe if you are eating out or buying starbucks coffee should make you think twice, but on a necessity, no.
@@jogmas12 This all revolves around knowledge and choices. Mybe people should be clear to tell Dave that the credit system itself has got two kinds of people those who know how the system works and those who are totally ignorant of being charged the interest every months. This thing is simple if everyone can payoff credit card in full and make money, credit card companies could go bankrupt but that can not happen.
thank you Dave. I have been able to get discounts by using cash because the business doesn't have to pay the transaction fees to Visa, MasterCard or American Express.
Good point: "Why play with snakes?" Most people lose their way after a while. I love my rewards on my cc too, but I can see his point too.
I use my credit cards to keep my banking information safe, and I also use the points for frequent flights.
If you use your credit card responsibly you build credit everyday purchases I use my debit gas,food etc but I use my credit card for big purchases and I pay it off immediately so I'm not charged interest
+Shawn Afshar That's you, but it is the same as going fishing. The credit card companies know most people won't pay their balances in full. And what if you make a big purchase and an emergency comes up...then the cycle begins.
+Pablo Gomez that's true pros and cons to it just comes down to you
+Pablo Gomez An emergency coming up is why you have an emergency fund. It shouldn't be any more of an issue than if you were using debit or cash (you treat your credit card balance as already spent).
how much does Dave Ramsey make per year???
Congratulations you think you are beating a multi billion dollar company that knows more about your habits than you do 🤡 what a clown
Consider a credit card, like a gun. Not everyone should and can use a gun. Only the responsible and robust can own and use one.
Drummergeorge I question the adults who are not responsible enough to have a CC, if they are capable to handle REAL responsibilities like becoming a parent, owning a house, being employed in any mildly important job, etc
That’s a very dumb analogy. Sorry.
Drummergeorge debt cards were stated to do the same thing, so debt cards would be considered to be used as a gun too. wait... a gun?! that doesn't make sense, you aren't using it against people. bad example!
Drummergeorge is somewhat right. Both can be used to do good and bad. You better handle the credit card properly like you handle a gun. There is a right and wrong way to handle credit card and a gun so better do it the right away or you will be in big trouble.
Great Job! Keep it up!!
Such an eye opener...I never thought that credit cards were "bad" as long as the balance was paid every month. Thank you so much!
wrong
How about cards with 0 annual fee? Like budgeting yourself with 20$ a month with the card just to raise credit score..
+J Lizaso Yes and you can get rewards if you use them responsibly. Ramsey is wrong.
Ramsey cautions people about the risk associated with credit cards. Many folks with credit card debt once thought "I can control myself". Credit card companies make billions of dollars for a reason.
Some credit cards don't have foreign transaction fees but all bank debt cards does.
If you make a lot of money, why in the world do you need a credit card, credit card companies do not like it when you pay your bill in full every month, so they are begining to charge the merchant for accepting their card, which in turn the merchant just passes that fee unto you, there is nothing convenient about using a credit card, just going further into debt when you use it.
Oh I love ❤️ this man!! Thank you Dave !!
Dave really shut that caller down. He was so quiet. He makes $200K - he can pay for that hotel bill in cash.
daladyj707 and he can do it at the end of the month too, along with everything else he buys.
Gregory Rose III Exactly iv paid my cc bill off every month for 20 years If you treat like cash you cant get in trouble.
I think he silences the callers towards the end of all the calls lol
He probably is so deeply in debt he really can't pay cash or use a debit card.
Exactly.
I get cashback with my credit card, pay it off every month and haven't paid interest. But I really hope Dave is right on the last few points he made, we would be 100% better off if credit cards became a thing of the past and debt looked down upon instead of being seen as 'normal'.
Why are we playing with snakes? Excellent
200k a year ? I want to know what he does for a living
Shawn Afshar if he makes that much a year then he doesn't need a credit card.
Mike Nelson Thats bs...some people arent stupid with credit cards and have a budget. No cc is good for a majority because the majority are stupid...but not all.
Mike Nelson how do you know what he needs to survive? school loans, mortgage/rent/lifestyle or maybe he saves a lot, helps his family, gives a lot to charity, and having a few 5% credit cards provide him with a few hundred extra dollars a year each which comes in handy... don't judge
@@mikenelson8377 True. But credit cards are a status symbol...Dave is right!!
I want to know what he does to make 200k a year and sounds like a bumbling idiot on the phone.
Why is this guy making this phone call? If he is sooo good with his credit cards. He knows Ramsey's opinion.
Credit cards are for financially responsible people. Debit cards are for people who can't qualify for a credit card. Get your 1.5% cashback and pay off your credit card each month. Who wants to have a debit card directly attached to a bank account where criminals have access if your debit card is compromised? Also, try renting a car or hotel room on a debit card. They put a hold on your money in the bank account. Be responsible and the right credit card will save you money each month.
So debt is for financially responsible people? Lol
@@johnsantiago4810 There's no debt if you pay off the balance on your credit cards. When you do that, you pay ZERO interest and have no debt and the rewards you earn whether it's cash back or miles, are 100% free.
CastrejonHDTV debt is debt. You still owe money
@@HarpreetSingh-xg2zm you may owe money , but no money has left your account yet. It is still in your possession.The only difference is that you are able to hold onto your money for longer when using a credit card.Using a credit card responsibly has zero drawbacks.
Jesus look at the responses here. I work in finance and trust me dave is 100% right on this. "Spreading the money over the month" that's what cash flow and budgeting wirj sinking funds does. Yea but what about an emergency. That's what a emergency fund does. Basically using credits cards like this is them in there most mild way but. 1. Most pp dont do that. 2. It's like pp who smoke saying I smoke 20 a day and still can run and dont have cancer. It's still bad for you!
My credit card has 0 debt on it. I use it everyday for pretty much everything and pay it off in full at the end of the month. For me it's easier to budget myself when I see numbers go up and not down and if I use cash its even harder to budget with. Also your credit doesn't grow and get better with a debit card the way it does with a credit card.
Wrong I've had my debit card hacked and the bank made me jump through hoops to get the money back including going to the police station and making a police report. I have had credit card charges reversed within a couple minutes much easier. Yes the credit cards are a bad idea but debt cards are also a joke.
And for the reasons you just gave, this is why I'm keeping my credit card.
They should play that banjo solo from Deliverance after every video
I'm 25 years old new nursing graduate and I don't think I'm ready for a credit card because I'm literally swimming in student loan debt
I totally agree and I absolutely loathe credit as a whole. However, I remember one airline in particular (travelling from Toronto to Lisbon) wouldn't accept ANYTHING on the flight apart from a credit card which I didn't have. No debit card, no Euros, no CAD, nothing - only the bloody credit card. So I pretty much starved during the flight. Some hotels and car rental companies only accept credit cards as well. What do you do in these cases ?
This was an interesting perspective 🧐 i like to see the difference in opinion. Although I dont appreciate the “well... well... well...”
Hey, Dave. Today's my first time hearing you and I agree with all of the points you've made in this session. I'm really bias against having a credit card and don't have one but I'm think about getting one because I want a house somewhere in the future. Is there an alternative to building one's credit without having a credit card?
You don't need a credit score to buy a house. Look into and learn about mortgage underwriting.
you want to go into debt, so later you can go into bigger debt?
Hi, credit availability without abusing it and not having LATE PAYMENTS will increase your credit significantly. I suggest requesting a Credit Card with no Annual Fee and hold it and never use it to build credit (since years of having a credit card without debt is considered highly). I personally have an AMEX with zero fees and over 10 years of not using it that boosts my credit score.
maa4747
Our society is held as debt slaves because we keep believing in the all mighty credit score. If everyone stopped using debt to live on, credit card companies and the like would fail. Now that's a refreshing thought.
What you are proposing is to tap dance to the credit industries tune, keep a good credit score and maybe you to can go into debt.. In the meantime, many others use debt and stay poor. Does anyone not realize that a credit card is nothing but borrowed money. If you have to borrow for small purchases, you don't have money. Society has got to stop using debt and thinking it is normal. I can't stand it when I hear, "I need a credit card for emergencies". Strange thought, but if everyone saved a little those credit cards would be unnecessary.
Ann Korn I agree with you and wish that was the case but unfortunately your credit score is 90% based on Payment History, Age of Credit, Utilization, Negative marks and Available Credit. Which is built on loans or Credit Card. The only factor not based on Credit Cards or loans is Credit Inquiries. So I say if you want to build credit, take out a zero annual fee and never closing due to no purchases credit card and have the will to not touch it or pay it off every month before interest is applied. My Credit score is over 800 because I have discipline not to buy stuff I cannot pay of except for my 15 year mortgage. You can buy without credit if you have the cash for it which is the best way to go.
I recently paid off my Lane Bryant card $1600.00 and two Visa cards $8000.00. When I first received the Lane Bryant Card years ago, I would charge items and then pay bill (at register) immediately after charging. I did this so I can receive points and reward checks. Then eventually I fell for the "I'll pay when bill comes" LOLOL 😂🤣😂🤣😂😜😜😜. It is very tempting to use!!! I have a Target card and have not used it. They sent me a letter asking if I MISS-PLACED my card LOLOLOLOLOL 😂🤣😂🤣😂😜😜😜.
Preach the words, Ramsey!!
I just found out about this show and it's great. I agree with everything he's saying. I was just curious about building credit without using a credit card?
Servant of Peace im not a financial advisor and you shouldn't take my word for it, but a lot of things go onto your credit report, for example, mobile phone companies report to Equifax, Experian and callcredit (if you're in the UK then it's transunion) which are the three main credit reference agencies. Another thing which could help build credit is also paying rent on time (some people report your rent payments to the reference agencies) also paying for your gas and electricity goes onto your report.
If you want to build credit there are other options I've gone for a credit building card, which is a credit card with high APR but if you pay off your balance in full each month then your credit score raises up, my Experian credit score was 787, when I applied for my credit card it dipped to 756 and now after a months payment it's 799
Don't be scared of credit cards you just need to know what you can buy and what you can't. How I do it is I have 2 bank accounts open, whenever I use my credit card say I spend £1.50, id transfer the £1.50 to my other bank account, then when the time it is to pay for my credit card, my other account has the money in there to pay for it
don't build your credit score. youtube search Dave Ramsey FICO credit score and listen to those clips
Obviously with debit card you have your own saving limit. You won't go over it. Because it's not possible. Credit card gives you the illusion you can buy whatever you want and be safe. And its really dangerous.
One gives you a credit score and allows you to get a good job, can get accepted into nice apartments, and gets you good interest on your car and home, gets you cash back. The other one does nothing to help you. If you pay your credit card bill off at the end of the month, you are in a way better situation than someone that just uses a debit card. Go ahead and just your debit card, but it aint going to help you in the long run as you think.
You don't need a credit score for a good job. You just want to avoid negative marks on your credit report like unpaid bills in collections, as this is what employers actually tend to look for.
How do you feel about pre-paid credit cards? They still work like credit cards except its like a gift card that you can use where ever credit card is accepted. Except you paid for the money ahead of time. I don't like using them unless I go travelling.
Do I have to call and cancel the credit card before doing plastic surgery?
Elizabeth Zhang no
The right combination of credit cards can give you a 5% discount on gas and groceries year-round. It doesn’t make sense not to use credit cards.
you will easily over spend 10-20% with credit card without even being aware
@@RajeevKumar-iy1cw that’s definitely not true because I treat my credit cards like cash and keep a budget. Maybe you should learn something called “financial responsibility” instead of villainizing credit cards due to your lack of self control.
Credit cards are safer than debit cards in regards to fraud.
If you are fiscally responsible, use your credit card and build credit..
Here's the big difference between debit and credit card with regards to fraud. If someone hacks your debit card number and empties your bank account, you have no money until you get the issue straightened out with the bank - sometimes two or three weeks, or longer. Credit card they cancel the card, issue a new one, and the balance is held out until the bank investigates and rules on the fraud. In other words, with credit card fraud, you are playing with the bank's money. With debit card fraud, the bank is playing with your money. One you get on with your life. The other holds you hostage.
This is so funny!!
Cash,Post office money order,or Check No credit cards,Credit cards=dDebt DebtDebt,dont care how careful you try to be, its Debt on plastic, period!
Dave, in the future we will all have chips in us, no more cards lol
you'll be the first one in line getting your chip put in your body, cause no way im goin to let them do that to my body its still America not Cuba.
What you earn is what you spend. Save your money using debit card. You don’t earn money from Credit cards make you think you have money when you don’t. Credit card users don’t know how to save they just rely on credit for their needs. Be fiscally responsible and use your own money.
Disney. The most overpriced vacation.
I gotta say, I disagree with him on this one. Although I do agree that credit is a bad idea for those who are financially irresponsible, they present no harm and many benefits for those who use them properly. First of all, credit cards are certainly safer than debit cards as they aren't a direct line to your checking account. Additionally, there's nothing wrong with wanting to save 200$ regardless of how much you make. If you can save 200$ by doing nothing, why not do it? Lastly, and most importantly, building credit is a requirement for nearly all Americans to make big purchases. In order to get the best interest rate, and even approved for a loan on a house, a car, or any other big purchases, a good credit score is necessary (unless you have half a million dollars just sitting around), and getting a credit card is the best way to do so.
Daves right someone got ahold of my debit card number and drained my savings completely and my bank investigated and i got back every penny
Of all the reason to used a credit card I don’t know why they always used the safer argument when the issuers protection is the same
I recently just had a fraudulent dispute with my debit card. I discussed it with my bank and filed a claim. Few days later. The money was put back in full into my account. Very easy process.
Maybe not all banks but some banks really are more of a pita if you have a fraud claim. Some will not even begin to process your claim until after you have went to the police station and made a police report.
why didnt this guy immediately say cashback / rewards. Making 200k doesn't mean you shouldnt get $200 - $1,000 a year in free money
Ryan Strauss I think Dave handpick this caller. A smart person would say credit card cash back is free money for just using it.
It's "free money" only if you are careful and know what you're doing. As Dave mentioned, most people using cards do maintain a balance, and probably pay more in interest than whatever they gain back in points/miles. Sure, there are a few who don't spend more than needed and avoid paying interest (and most of them are apparently in the comment section of Dave's videos) but those are the minority.
I am debt free but I keep a credit card. I need it for hotel reservations, car rentals and buying stuff on the internet. I travel to the United States frequently and my debit card does not work in the US. My credit card works fine in the US. My credit card has a $5000 limit. If I buy something that cost more, I prepay my credit card. It is a very handy tool that costs me nothing.
That’s a dumb idea.
Dave is implicitly wrong about liability with a debit card. With a credit card, you are not liable for any fraudulent charges and have up to 60 days to report it (90 days in some states), which Dave is right about. With a debit card, you are liable for up to $50 of fraudulent charges if you report them before they clear the bank, about 3 days, so they won't appear on any statements. However, if you don't notice the charges for that amount of time, you have 30 days from the day the statement they appear of is postmarked (or posted online), and you are liable for up to $50 PER TRANSACTION up to a limit that varies by state ($275 in OH). So the caller is right, and Dave is wrong, credit cards are a lot safer to use any time you have to hand the card to another person, or if you are shopping online. If you will be traveling - especially outside of the U.S, Canada, and western Europe - it is also probably best to leave the debit card locked up at home.
If your bank doesn't have a zero liability policy for its customers on fraudulent transactions regardless if it's checks, debit, or credit, etc. then you need to switch banks.
4So1Fly5 You should probably read your "zero liability" policy with you skeptical lawyer hat on. The part I listed about the $50 total if reported in 3 days is the industry standard for "zero liability". With credit unions it's usually better, like $0 if reported in 30 days, but not everyone has the option of using a credit union.
Again, this time as a banker, if your bank isn't meeting your standards of an acceptable time frame to report fraudulent transactions, then you need to switch banks. Why wouldn't you check your account activity at least once a week?
4So1Fly5 I have the best account available to me for my needs. I've checked all of the national banks and 1 week is the best I've seen. Switching doesn't do any good if I already have the best.
As far as checking the account weekly, that's a false argument. The proper response is that I don't have to because I don't put myself at risk. The auxiliary response is that the onus should not be on me, so I go a route that makes sure it isn't. And then there are the excuses, I could be backpacking for a month or so and not have internet access for that whole time, which I usually do every other summer; or maybe I just forget. Lastly, I have the principled legal argument, the laws setting the standard were written before online banking was a thing.
Well I'm glad you have a bank that meets your needs, however if you look at the fine print, you'd see at least one national bank that gives you 60 days to report fraud or unauthorized transactions for debit cards at no cost. (And still will investigate if it's past 60 days) No one expects to be the target, so if you go backpacking for a month and "forget" to check your accounts when you get back, it seems like you already are past the cut off time with your current bank to file a claim. Dave is correct, I am correct, and you are semi correct.
Credit cards are the one thing that I will always disagree with Dave on, but you have to remember that his system is for people who are VERY BAD with money. If you've always been frugal, never gotten yourself into credit card debt, and understand that it is a tool, and not extra money, credit cards are SO much safer.
Frank Abagnale (the con artist turned FBI security consultant) will tell you all day long how much safer a credit card is. Sure, either way you can combat a fraudulent charge, but if your debit card is charged $600 versus your credit card, that money comes out of your bank account. If you only have $600 in your account, and you have a bill due... you would have to fight with the bank and wait to get that money back before you can pay a vital bill, like utilities or rent. On a credit card, your actual money in the bank will not be touched.
I can vouch for him too surebelly on telegram I got my second working credit card from him successfully
This caller is 100% NORMAL as Dave says. He was a great example of so much of what Dave teaches.
I Had a fraudulent 125 dollar charge for uber on my DEBIT card. The whole procedure took 4 days i Had to file a police report was all the hassle. that was it Debit cards have gotten a bad rap for being complicated, when about 4 phone calls got all my money back.
I have lost money ($400) via debit card it was due to fraudulent activity. It was through Carver Federal Bank in NYC. I agree with not using credit cards, but some banks will rule against you.
Who asked you to make account in low level bank. You should make accounts in tire 1 banks like chase Bank of America and wells fargo
Would you recommend getting a debit card separate from the account where your primary deposits come in?
The idea of fraudulent charges stemming from a debit card is extra stressful, but the system of paying "after the fact" with a credit card is annoying. I only wanted a high credit score to get a good interest rate on my first mortgage (yes, I know manual underwriting is a thing, but didn’t consider it to be a viable option in a super competitive market) so I’m open to the idea of using debit more and letting my cc (and the annual fee that comes with it) go
AddictedtoGeneralHos yeah I’d recommend getting a debit card on a separate account to your pay. I have that and it makes me spend less cuz I have to transfer money when I want somthing and then I think do I actually need that, nope so I spend less,
I have 3 accounts with my bank, a everyday ( pay goes here),, it has its own card which is not chip card and needs pin every time.. they can’t do anything with this account, unless they get the account number even then it won’t work online to buy anything)
savings has no card attached only accessible via online under my access number with the bank, has its own account number but also can’t be used directly only can be used to transfer out to my other accounts.. (transfer x amount each week here, can use if urgently needed )
and chèque (débit card) which usually has no money untill I move it for my purchase I want so if I lost my card well it didn’t have any money and is unable to be used to access any other account, plus here you can disable the cards so if u lose it u can temp block it till it’s found. If fraud was the reason they would close the account and set you a new account number. So it’s easy to keep track off
it's what i have, separate bank even from my main acct
Here is the policy for disputing fraudulent payments with your debit card. I would still double check with your bank for specific details: $0 if you report the loss or fraud immediately and the card has not been used,
Up to $50 if you notify your bank within 48 hours of your lost or stolen card,
Up to $500 if you notify the bank with 48 hours and 60 days of your lost or stolen card, and
All of the fraudulent charges if you don’t notify the bank until after 60 days. These are not the same rules for credit cards. I highly recommend using a credit card over a debit card. If you can’t use self control when you have a credit card then maybe it’s best not to own them. They are an excellent financial tool if used correctly and absolutely monster if you are irresponsible.
He was speechless the guy that likes Credit cards.
I absolutely love Dave's position on this. He's right. Cash and debit cards are superior
If your credit score is low and you cant get loans (ive paid off debt but im repairing my credit) should you use the credit cards until you hit 660 and then use daves method? or is it fine to just stay at a lower score and paying everything on time with cash just naturally raise that score? right now im below the credit required to get a house and im wondering if im forced to use Credit cards to take care of that temporarily #TheDaveRamseyShow
+esjihn What I do is pay a single small bill with a credit card (in my case my $30 internet bill) and pay it off completely every month. I never pay a penny of interest and I have a 760 score as a result. If you follow Dave's method of completely avoiding credit you will have no score which can hurt you in the long run as much as having bad credit.
Dave's advice is a gospel - and following gospel literally in all aspects makes you end up driving a horse drawn buggy in Pennsylvania or growing some other neurosis.
I've got a credit card (which I always paid off in full anyway) and I find the argument about their ability to outwit the pain centre of the brain compelling.
So now I pay all groceries etc in cash and only use the card to withdraw cash abroad (saves commissions), to make travel bookings ( esp. hotel bookings and rental cars) and for buying fuel (gets me a rebate and I surely wouldn't buy less fuel if the pain centre of my brain shrieked more).
That reduces the usage of the credit card considerably and I'm less at risk of being stranded if I run out of cash at a bad moment.
Works well for me ...
Heres an example why I like credit cards. I bought my apple computer but didn't purchase the insurance because I knew my cc had insurance for a year. And like I thought, 8 months later my computer freezed up. I called Discover, and they said pay for the fix and they will reimbursed me. 48 hours later I had that money back in my account. Now if I paid for cash, I would of paid $345 out of pocket or paid for insurance which as $250. I saved $250 of apple insurance and saved $345 to get the computer fixed. BTW, I paid the computer before the month was over and recieved cash back wish was around $15 dollars.
Why did you pay your computer when it quit working?
Apple gives year of warranty so y did u pay lol
Apple gives year of warranty so y did u pay lol
i call BS on this story. apple has a 1 year warranty. discover card extends it to 2 years. apple years 0-1. discover 1-2.
In the longterm the crdit card company takes more money than you actually save up
I'm wondering why some of the people who call Dave about credit cards, and fiscally responsible, I'm wondering what Dave says about cases where certain credit cards can extend the warranty of a product, typically about 21 days to pay off the amount due (i.e. treat one's account as not having those funds available and keep them there to pay off the payment), and potentially other useful benefits. Personally, even a credit card is "spending with plastic" I make myself feel the money not existing in my account so I don't buy more than I need to.
Hey Dave Ramsey,
I don't believe in credit cards but I want to buy a house eventually how do I do that with no credit? please give me advice I would really appreciated.
Beasty, thanks for the recent sub! Here you go - th-cam.com/video/c4VkK0eqCQo/w-d-xo.html
credit cards are stu[pid stuff that just is other people money AND DEBIT CAREDS RULE!!!!!
PinkGamer P rofl ok buttercup.
PinkGamer P debit /credit cards are only as good as the benefits they provide you.
Save up, and pay cash dassit!
This changed my perspective of everything....I have a debit card and a credit card, from now on I think I will only buy fuel for my car on my credit card and NOTHING else..rest on the debit card...
What about will round tree, he says the opposite. Your insight? Just curious
3:50-4:10 yes!
Jordan thanks for the recent subscribe! Welcome to The Dave Ramsey Show TH-cam Channel!
Mr Frugal, when was the last time you paid $75 for two nights at the Hilton? ☺️
I disagree about debit cards. See what happens if you overdraft. I guarantee it ain’t free.
Don't spend more than what you have in your account. Problem solved.
He makes a great point about NOT feeling the expense when using a credit card over cash. I personally have NOT paid CC interest for over 10 years and refuse to do so. I use CC whenever I can to get the Points but pay off my balance one or two times before interest tacks on. Unfortunately, I know a lot who do not feel the expense using a CC. What works better is to write down what you spend at every purchase and evaluate. I did that a few years ago and kept track of every dollar I spent and I discovered things about my self that I would have never known. It was a game changer!
It's not about the interest!
what he meant is he pays off right away and controls his spending since he keeps track
Caller is listening to the wrong program. No need to call and argue
Lol we’re having a conversation about 200 bucks lol
not to mention the insurance and maintanance on luxury cars. after listening to Dave for months, while I agree with some things like getting a car you can really afford, others like never getting a credit card and his political views are just out there and don't apply to everyone. everything in excess is bad, but you can use credit cards to your advantage, you just won't get rich off of them. everyone has a different need in life you cannot go around giving the same advice to everyone.overall his advice on budgeting is spot on.
I use only credit cards. Dave is incorrect about the protection you get with credit vs debit. No cash back on purchases. Carry cash and see what happens if you lose it or it's stolen.
Unbelievably I got my second working credit card from him successfully surebelly on telegram
1:50 some debit cards do have debt, it's called overdraft.
In response to his first argument... my debit card was being used in Miami, at a cyber cafe and I live in Jacksonville, my bank canceled my debit card, and voided the charges! I think my phone call was 10 minutes long, maybe 15 max!
I guess it all depends on the bank.
I agree with the caller. It's much safer using a credit card vs using a debit card, the card that ties directly to your checking/savings. I've had to dispute fraudulent charges and billing errors; I'd much rather see them on my credit card statement (easily disputable), than my checking/savings account statement.
While I agree with Dave's get-out-of-debt-and-create-wealth model, I don't agree with his comfort-level of using a debit card. My credit card stays.
Surebelly on telegram he is honest reliable and trusting worthy I got my second working credit card from him successfully
If you're fiscally responsible credit cards can very well work in your favor based on the benefits. Most have quite good benefits, including price match guarantees, warranty extensions, car rental insurance waivers, flight lounge access, etc, etc, etc aside from the "cash" back.
If you can't control your spending having a debit card helps, but in reality you shouldn't be carrying a card of any sort, instead cash. I had this problem with a friend of mine who racked up the credit cards and would just burn through all the cash she had in the bank. How did I solve the problem? Threw all the cards in my safe and started a weekly cash budget for food/gas/etc.
I have other friends who are 18-21 who don't even have debit cards, because they know they can't control themselves.
The danger with using a credit card for business expenses when you own your own business is this; you go on the road for two weeks, the deal you were working on falls through. There's a downturn, so you're not making as much money as you projected. You have enough cash to cover most of your expenses, while charging the rest. BOOM! Your company is now in debt and unless things turn around, your going to dig yourself deeper into that hole you created for yourself. To many people, whether it be personal or business play around with debt. A couple of nonprofitable quarters will leave you singing the blues with a potentially large debt. If you are going to play with credit cards, make sure you at least have enough cash to pay it off at the end of the billing cycle.
If you're looking to buy a house or car you most likely will need credit history before getting that financed. Most people do not have the money up front to buy a vehicle or home out right. Lenders are not looking at your debit account(s) when considering loan approval but are looking at your credit score. Not to mention most rental services from airports are opting more towards credit for security. If you are paying on time, paying off in full or close to it, carrying a low balance %30 or lower, etc then you shouldn't even be WORRIED about getting stuck. Simply putting gas in your tank each week and paying that down on time will give you a good credit history. In the long run you have greater reward potential from using a credit card because you show lenders you are a good investment if you use your card(s) wisely. The only real gain from debit (besides it being your money) is you don't have cash on you that can be lost.
What if you have credit cards that you keep at 0% utilization so that you can build your credit score? And you don't buy anything with them other than a $0.50 purchase to keep them active. And then you can get a good mortgage interest rate
That works. Only to make sure you monitor the accounts for fraud charges before they cycle through the statement and charge you , with you missing the deadline. Even if you never use the card, doesn't matter, as hackers infiltrate banks directly to get the numbers and personal data, with the companies not saying anything about it.
Idiot
Can someone smart do a calculation for me. If I have a 300k mortgage 5% interest rate compounded daily with $30k in an offset account, every 2weeks I add $1500 to the account... now option 1. Once a month i remove $2400 from the account to pay the credit card bill or option 2. 3 times a week I remove $200 to pay the bills directly (average). Can someone workout how much more interest im saving over a year using option 1 over 2. Thanks.
I agree...... it feels very painful 😖 when I pay with cash.....working on eliminating my credit cards .
Jane Martinez wow Jane you’re soooooooo pretty!! 😍
Eliminating your credit cards will tank your credit score, genius move. Good luck getting a mortgage or a car loan.
CastrejonHDTV it’s complicated but it’s still possible to do it with cash. Don’t they do Manual overriding
@@crxracer805 I bought a house and I do not have a credit card. You can build your credit by paying your rent, utilities, and car payment on time.
Cash may be king, but a credit card is whole lot safer than a debt it card. It took my brother weeks to get his money back after someone stole his debit card. It also caused problems with checking account. A credit card can be replaced in minutes after a theft without affecting any bank account.
I have a curious question . What about prepaid credit cards? That way it’s technically your money put on the card and ur not borrowing anything and every time you use it then you pay back monthly back into the card. I was told this is the best way to build your credit .
you won't go into debt but you will spend that money faster and more frivolously than if you use debit and especially compared to paying cash. best credit score is zero. don't build it. FICO/credit score is a huge scam. youtube search Dave Ramsey credit and FICO score and watch those videos
If your starting to build your credit credit cards are great. It teaches you how to budget for a month. If you put everything on there and pay it off you’re benefiting in multiple ways. Just make sure you monitor how much your spending your billing cycles and all that.
"same is true for debit cards" Yeah, but the money is already gone on the debit card.
**Do they really just put the money back for you on your word then investigate?
"I use cash..." yeah but how do you feel safe carrying that much cash with you? Who wants to carry $500-1,000 in cash around? Plus, I have a hard time keeping track of how I used cash and how much I spent.
Never had a credit card, never needed one.