“When did you start listening… oh okay great, we’re happy to have you” sounds like a grandma about to drop knowledge lol. More people would listen to advice if they handle it the way she did.
Thank you Jade for not pouncing right away and screaming about credit!!! A viewer, and a new viewer, with an honest question that was answered beautifully!
So refreshing to see a personality like Jade's. One that has unwavering values while also maintaining a spirit of teaching and mentorship. Dave could really take some notes!
Ok to be perfectly fair I did this when I got my first car. I was so mad about it because I just wanted a bike to get around but Dad said I needed a car. And I bought the bike later that day. It currently has more miles than the car.
Wow! They never gave her advice on what credit card to get. because some hotels / rental cars they will not let you rent their vehicle... Purchase food on that airplane horrible advice cuz you don't want to put your debit card out there on a regular basis
@ Seeing how I travel so much and have never had this issue your comment is funny. Also why would you want your credit card information out there? It’s the same protection as the debit. By your logic just pay in cash oh wait airlines banned that so don’t get the snack
Unfortunately a lot of apartment complexes or people that rent apartments/units don’t care about the money you have in the bank if you have no credit. I work for an apartment complex and doesn’t matter if you are willing to give them triple the rent, they will not accept you if you have bad/no credit. Not all places are like this, but a majority of them are.
Multi-family housing around colleges and universities are used to dealing with a population with no credit History. She is specifically calling for her college-age child.
But we DO need a credit score, and you have one whether you want it or not. Maybe just from your utilities. Way too many things look to credit scores such as jobs and insurance. I would rather not have to explain my credit score so just work the system. I taught my son by him getting a small loan that he paid off in six months. There are smart ways of playing the game. Googled it and there is NO SUCH THING as zero credit score. It’s “no credit score” and that’s not the same as zero credit score. Fact checked. ✔️
Tbh it all comes down to just being responsible. Long before i knew dave Ramsey principals my mom gave me a credit card that i used only for gas. It worked well for me. My sis on the other hand went into crazy debt
@@Shortballa11My strategy with credit cards is similar. I only use one for household repairs and another one for online purchases, which I do sparingly, that way I'm more likely to stay in budget only for what I really need.
@@Seldz1Studies show you spend more money when you use a credit card, and that doesn’t even factor in the debt. Why are credit cards so highly marketed and so easy to get unless the owner makes a lot of money off them?
I'm not from the USA and in my country, credit scores are not a thing. They don't exist. When you buy a house or rent an apartment, you have to show your paycheck to prove you can pay
Go down to a bank and see if they have a prepaid credit card normally u put $300 in to use and basically pay it like a credit card. Very little risk to build up credit.
And plus, use no more 30% and keep it open and make sure its no annual fee as your first card. I forgot to use mine and it drops off in 2025 that I got at the age of 20. I'm 44 now. Life is a lesson.
@@donjohnson1416 life is cheaper and more convenient with a good credit score (if you're not also carrying debt). Lower deposits when renting an apartment, wider choices of places to rent, lower insurance rates, lower mortgage rates, etc.
As someone who works in lending, let me correct Jade. A 0 credit score is usually seen as being worse than a bankruptcy. What they want to see is a history of making payments on time.
@ Most people don’t understand the loan process. It’s not your loan officer you need to convince of things, it’s the underwriter. It’s a lot of work for the loan officer to gather and present to the underwriter and the underwriter to present to his clients. Most of the time they are just too lazy to deal with it.
not really she just wants to help him build it and if you teach them how to be responsible with them like caleb hammer says you can become a credit card person. This other ways to get houses and to rent without credit and a car its very very difficult without a huge down.
Debt free is not scary. Have no credit score is scary. I know it’s not the right answer bt apartments do in fact reject you and if you some how manage to get to a house you will be penalized. I actually got out of PMI by having a good credit score
Excellent call and excellent response. It's good that Jade did the talking because she is much more patient than Ken is. It's good that Dave wasn't on because Dave closes caller's mics very quickly and we wouldn't have gotten to hear all of the call
If you have that much cash, go right ahead. Most people would be better off with a medium-term mortgage with a 20% down-payment at a low interest rate while investing the rest of the cash into the market. An 11% return beats a 3% mortgage interest rate.
@@unlimitedpower4101 the joke is most people can’t buy houses with cash, but thank you for explaining it 😅 But to your point, at current rates you might as well pay your house down at 7% ish interest. I’ll be doing that when I buy a house to derisk then hit investments heavily. Will be nice having 0 debt and a high income
My last car that I bought new in 2019 was with cash. When I told the dealer I am paying in cash for the said amount, they tried to talk me into a loan. I told them cash deal or I don't want the car. They agreed to cash deal.
Totally agree! Over the last 15-20 years, we have made at least $25k in free money using the credit card correctly. Always paid it off and never carried a balance EVER! You have to be wise . .. and most people aren't!
I am at the beginning of my "investment journey", planning to put 85K into dividend stocks so that I will be making up to 30% per year in dividend returns. Any advice?
Investing without proper guidance can lead to mistakes and losses. I've learned this from my own experience.If you're new to investing or don't have much time, it's best to get advice from an expert.
The issue is people have the "I want to do it myself mentality" but not equipped enough for a crash, hence get burnt. Ideally, advisors are reps for investing jobs, and at first-hand encounter, my portfolio has yielded over 300% since 2020 just after the pandemic to date.
My CFA NICOLE ANASTASIA PLUMLEE a renowned figure in her line of work. I recommend researching her credentials further... She has many years of experience and is a valuable resource for anyone looking to navigate the financial market..
I just googled her and I'm really impressed with her credentials; I reached out to her since I need all the assistance I can get. I just scheduled a caII.
This is scary advice, having a credit score doesn’t mean you’re in debt. Their like a hammer, you can hurt yourself using them but at the end of the day they’re a tool
I love callers who claim to be listeners and then ask for completely anti-Ramsey advice. “Hey guys, been listening for years, love the show. My question is, I want to buy a time share, should I pay for it with a 401k loan or with a HELOC?”
The Bible passage about the borrower being slave to the lender means you are obligated to pay your debts. It doesn't mean that if you borrow money from a bank, they can whip & beat you and force you to farm their land for the rest of your life. There are legal restrictions in place on credit cards on what they can and cannot do. And to actually answer the caller's question, she can add her son as an authorized user to her accounts, which would add her credit history to his (and you don't even have to give him one of your cards). Then, to introduce him to credit cards, you can either use a secured credit card (where he has to add money to the card before using it and it can't be overdrawn) or a simple intro card like a student credit card. A good starter card would be the Discover It card.
For me as an Austrian it so crazy how people in America belive in Kreditcards and feel its normal to be in any kind of dept. Luckely cash is still okay to use here in Austria. Love that David Ramsey startet this show so that people can understand what really works in reality. Also I enjoy listening to Jades explanation. So competent, clear and understanding.
Simple solution is add the kid as a user to your longest used credit card. I did that to my two oldest kids and both 18/19 have > 780 just after a year. I don’t want them to have debt but doing this provides options.
I just worry for a credit side and how so many companies are using the credit reports and score to determine your financial situation. Insurance companies are using it to establish your premiums: better score lower payments, job applications we pull credit: poor or no credit does not get priority, I just had an individual get denied for an apartment due to no score and no credit. I understand the idea of no credit/debt once your well established but getting there can be very costly until you do.
@FurryHippoFinance this is why I believe it's best to teach teens how to manage debt. Don't get me wrong Dave's method is great for overall management of money. Having the right mind about money is key, but the kid just starting out is better off being taught how to manage rather than avoidance and don't understand stand why. Insurance and apartments just want to see if you can be relied on to make on time monthly payments. When you don't have a credit score they can't gage that so you become more of a risk which equals higher premiums.
Learn to dance with the devil through discipline, planning and budgeting; instead of complete avoidance, workarounds and jumping through hoops to stick it to creditors. I prefer efficiency.
@@gracelynmarie2608 actions have consequences, the older and wiser we get the more we can anticipate how our behaviour can affect our future. Same with money, when a young adult starts understanding that spending more than they earn is not sustainable if they don’t want to become homeless, they start learning how to manage money and budget; also how to increase their income…
@@gracelynmarie2608 not sure what to do with “cash is king” slogan. I don’t remember last time I had cash in my wallet. If you mean having a pile of cash in a chequing account and not earning any interest is also weird. I don’t want to sound rude, just don’t think actual cash or chequing cash is useful aside from paying monthly bills.
Can we acknowledge how wise and grounded Jade is and doesn’t judge her and jump to conclusions? Such a wise woman with such a wise and gentle response!❤
i have nothing against credit cards as long as you are responsible. having a great credit score doesn’t hurt for me responsible : paying off the cc in full biweekly with money to spare after all bills are paid.
It’s very very very hard to find an apartment in a college town that will take you with no credit score. It’ll have to be some small apartment own by some guy and it’ll 100% be a trashy place.
What if I'm using the credit card the way it's meant for. For example. I need to put $60 on my gas tank. Instead of using my debit card I use my credit card (boost up my credit score) and just make the full payment the following week or the exact date it shows up on my credit card account. The point is to play the system .. most people make minimum payments monthly. That's not the right way to use a credit card. If you have to buy groceries AND YOU ALREADY HAVE THE EXACT AMOUNT IN YOUR BANK ACCOUNT. Then use the card credit to boost your score and make the FULL PAYMENT the following week. PLAY THE SYSTEM!!
What could he do with that credit score? Low interest on a home, lower car insurance, easy to rent a home or apartment , or a car rental. A good score makes things easier, but yes you can live without it. Good luck with the pain in the butt manual underwriting. I’ve never agreed with their opposition to responsible credit card use. I mean you only need a card with a low limit as a tool to build credit.
Jade handled that extremely well; she didn't flinch, giggle, or even give anyone a funny look! Well done. Handling the situation with kindness probably converted that caller and her entire family to the Ramsey way of thinking.
The whole credit system was created to keep people broke . The idea of loaning out a 60k vehicle at 7% interest for 6 years at 600$ a month is not an actual purchase. That same 7% rate of return on that 600$ for six years an S&P index fund would make you $54,408.63 . So basically you've lost over 100k on a car loan . This is the credit system and it's a joke .
Yep. There's the opportunity cost of lost earnings and there's the interest on the car loan... $15k, in this case. All up, about $130k, and at the end of the six years you're driving a car that might only be worth $20-$30k. Might!!! You're $100+k in the hole and you don't even realize it. This is why I buy bank bonds instead of taking out bank loans. This is why I have shares in banks rather than taking out bank loans. Yep, it took me 32 years and the deal of the century before I purchased my first new car (cash) but I don't care. If ever I decide to work for a bank, it'll be as a teller, not as a debtor. Until that day comes, the bank can work for me. Cars are a great way to burn through cash. Paying a bank a premium to burn through even more cash is lunacy.
I have a credit card. The same one I’ve had since I was 19 yrs old and am now 40. I don’t carry a balance. I use it periodically and pay it off. Nothing wrong with that. I understand their no debt philosophy but to me this is like teaching kids abstinence only instead of educating on condoms. You can have a credit card-teach them to be responsible with it.
3:13 u don’t need credit to rent. I rented my 1st place 5 mos after turning 18 (in 2016) w no co signer. The lady said no credit is better than bad credit 🤷🏾♀️ U can also rent apartments through ppl on Facebook now looking to sublease or for roommates. Main thing they bare about is 3x the rent in monthly income, 0 evictions/bankruptcy, & a clean background check. I’ve rented several apartments in my 26 yrs; no he won’t qualify for the fancy one with the gym and swimming pool but he will be able to rent from a private landlord w no co-signer.
the world does not revolve around you just because you were able to do it doesnt mean that other homes wont. Its like saying world hunger doesnt exist because me and all my homies eat good
For a home will you get the same interest rate or will it be higher with manual underwriting? If you have a good credit score you could find out who has the lower rate for a home and go with them. Wish the ramsy show would have a guest on to debate this issue as they are pretty biased.
Right and they are probably getting hookups to talk to the right people. The average person should just play the game (you can pay zero interest and still play the game) and get on with their lives. For the personalities this is their entire life
they hav claimed u get a like rate. not sur wot data they hav in support; also recall they state make lg. down pymnt. & do a 15 yr. term which of course affects the rate ...
While I don't disagree with paying cash and staying out of debt as Jade's point, but there's nothing wrong with keeping a credit card and paying it off. One example, I don't like using my debit card online, but I shop online frequently using my credit card. If you ever have a fraud charge, you can usually get your money back, but the bank will cancel that debit card and issue you a new one. Now you are without access to cash or paying for things for several business days until you get your new card (or have to go inside the bank). I can sacrifice the credit card for a week or so and not feel any pain. Obviously, the lesson for young and old is to not run up credit card debt. I'd bet if you checked Jade's wallet, she has a credit card in there.
She can't keep a credit card. Ramsey is probably running credit checks on her and the other co-hosts to make sure they don't have a credit card. It's a requirement of their jobs. The Ramsey company is so anti-credit card that they don't issue corporate credit cards for their managers and sales people, they only get corporate debit cards.
To get a decent credit score you don't need to go into debt. I got a single credit card and paying in full every month I got a 750+ score in two years having it.
How does Ramsey overcome the difficulty in finding apartments that will accept someone without credit? I work in student housing and luxury, and usually there’s a way in student housing, but any decent apartment typically won’t accept without a guarantor who makes a significant income AND has good credit history
In another video (over a year ago) he explained what he did for his kids when they were in college and looking for apartments ... he offered to pay the entire lease up front! As simple as that!
Do exactly as Jade states in this presentation. Show the landlord a copy of your bank statement and a history of pay receipts. This is the way that the rest of the world does it. This whole "credit score" thing is pretty much USA only, and it's a con.
@@megalodon1726 You’re talking to someone who manages and excels at keeping tabs on a local student housing market, with a national company. I can tell you with faith, that yes, a few places do in fact offer an option, but it probably 1 in 5. While it’s still POSSIBLE, how could a parent do this in good faith knowing their limiting their child’s options when they could also teach responsible use of a simple credit card on auto pay?!? Ramsey techniques are best for people who are not and will not be significantly wealthy. To be clear, a millionaire at 40yr old with 1/3-1/2 of it being home equity is NOT wealthy
Plenty of good options. Best to teach him how to use cards before there’s a lot of money at stake & he can dig himself into massive credit card debt. Prepare your kids for the real world & dont act like credit cards don’t exist. The vast majority of wealthy people use them, too. Ask around.
Credit card company saved us from a $9k bill from a rental car company. Rental company billed us after our insurance had already paid the damage claim because the rental company decided not to fix the car and sold it at auction for a loss. The credit card company paid and settled it for like $600. I will never rent a car without a credit card. Not sure why the advice is always for zero credit cards instead of responsible use?
It's their absolutist, one-size-fits-all mantra. Just like the $1000 starter emergency fund for everyone regardless of family size or monthly expenses or inflation.
Just an opinion... If you're that undisciplined with the availability of money (via credit), then what will make you stop overspending once you save up the cash or when it's readily available? Having a credit card or 2 shouldn't matter to a disciplined person plus at the same time making it easier down the road to make financial moves. You can still hold the same mindset to avoid unnecessary debt.
We bought our first house in 2018. My wife was debt free with a low score. Not due to any derogatory marks but because she had not borrowed in so long and her old debts were only about $1-2k and were paid off early. I had a zero. We went with a traditional(not manually underwritten) lending agent and ill never forget the change on the agent's face from the frown when she saw our credit to the grin when she saw we actually had a good sized down payment and were not trying to max out the amount we could borrow based on income. Not only did we get what we asked for, she actually tried to upsell us to a higher loan amount. And this lady's son sounds alot better with money than we were at the time.
The other fallacy is that some people enter the credit score game and come out losers with low credit score. No credit score is 100x better and cash is king. I’ve done dozens of real estate loans with cash and my first 2 personal residences with manual underwriting and I did have to provide tax returns.
I disagree with “never “ using a credit card. Because now you are dealing with the “exceptions “. It’s possible to find a place to rent that doesn’t check credit score. But housing is limited. But now you are jumping through hoops when you don’t need to. Other advice from Ramsey is great. Having good credit isn’t a huge disadvantage vs. no credit
@@donjohnson1416 Not really, put my son on a card when he was in high school. He didn't even know. Then he got a card in college that he pays off each month.
@@archeanchaos-s4c - So instead of him learning the value of a good score by building it steadily for himself, you just dumped him into a world that will give him way more credit than he can handle.
It’s funny how they try to find a workaround for every life situation where you need to jump through hoops just to stick it to CC companies, lol. Why not teach people to be responsible? Start with prepaid cards to learn good money habits and budgeting and move to real CC’s as part of your overall budget to use money for specific purposes, etc. Then automating most of these things. If you start spending more again, go back to pre-paid. Why make your life harder? It’s like beating a dead horse with them…
Jade was masterful handling this call. I was not in the US, but the UK when I bought my house, and I effectively did the same thing, payslips, outgoings, rental history (no formal term for it I don't think). But all well within my budget (mortgage payments were about equal to the rent, no biggie).
I'm definitely jaded on this topic. While I understand the mom's intentions, my mom did the exact same thing for me. She got me a Capital One card with a $3400 limit back in 2016. She was using it herself and paying the balance off every month to help build me credit. Somehwere along the line she gave it to me and told me to only use it sparingly and as long as I didn't run it up, she'd pay the monthly payment. Well long story short, between 2022 and 2023 I ended up in debt and maxed the card out eventually. I actually just finished paying it off a few days ago. I started in January 2024 and finished in October 2024. It was NOT easy by the way to do it that fast. I had to work a lot of overtime, but after becoming a fan of this show, I've been determined to not stay in debt.
For anybody who came to the video looking for an actual answer to the question. I “store only credit card” can be an AWESOME first credit card. If you pick something you’ll go to often, as well as something you won’t spend too much on. Store only credit cards can be an amazing way to get started with credit cards
To the lady commentator, yes it is about how you interact with debt. It is not about can you afford the item. Banks aren't really supposed to figure out if we can afford it (within reasonable standards) they are only interested in can you manage debt effectively. Credit scores are your past performance and quite often past performance predicts future performance.
Let’s be honest, Jade. Would Dave Ramsey rent to someone with a ZERO credit score ??? Nope he wouldn’t ! Trying to find that landlord is near impossible !
proof or shut up. Dave has had a few 1000 tenants lifetime likely. betcha several @ the vry least had no credit scor cause they were baby steps adherents ...
Yes he would as long as they can prove that they can pay the rent and make payments on time. Unlike most landlords he's not dumb enough to let a computer tell him what to do or base a decision on one number.
You might all be laughing at her for calling in with this question, but because of this call and the simplification of the response, so many people who know nothing about Dave Ramsey will watch this and have their eyes opened! This call will help a lot of people, I’m glad she called in!
I wish I have known this when I moved from the Philippines 35 years ago since I have no credit score when I moved and bought my first car here in America.
Depends. How much does that individual make per month, year or in the last 2 years? What percentage are they putting down as a down payment? How much do they have in checking, savings, stocks, CD's, money market, retirement ? Does thier financial statements reflect on time payments for their rent, utilities ECT for 2+ years? As Jade stated, this comes down to the financial institution and methodology of analyzing a homebuyer. Instead of a FICO score, they will look at the total value of your entire financial profile. Manual Underwriting.
That's so interesting, what Jade is describing is exactly how people do it here in Europe. There's no such thing as a credit score here, and it's rare that people have credit card debt.
They have a template that try to fit everyone in. Doesn’t work like that for everyone. What I don’t understand is why it’s bad to have 800+ credit score and no debt? Like I do. Why will I want to have 0 instead and have to be explaining myself around when with my credit all renters are basically begging me to apply. That’s nonsense. And also no, there is no many places that don’t care about your credit score, and if they don’t, is not going to be a good neighborhood for sure.
Fact check, doesn't really work. I did the 0 credit score years ago. 2 years I didn't open a line of credit paid everything in cash. Unfortunately you cannot negotiate lower rates. You can't just pay 3 months of rent upfront without them looking at you sideways either. Even private land owners think you are setting up a grow house or something.
You can easily get a credit card with a very low limit, just teach good credit card behavior instead of avoiding the product entirely which does a lot to protect you
I loved this call, Jade handled it extraordinarily well! I agree 100%, nobody needs credit. Listen to the caller, all this credit anxiety because her sons going to college. College is not an excuse to blow the lid on credit card use. If anything, you want to be extremely cheap, thrifty and miserly with all expenses(especially tuition/housing) during that time. If you have a child/niece/nephew/family member in college..help them out, try to assist them in staying close to debt free during that period. We've heard the student loan horror stories, lets stop reproducing debt while we are trying to better ourselves for the job market. A lot of corporations/Jobs run credit checks now...not for the score but for the adverse content. Stay debt free and wise!
my Dad used 2 say 'every1 needs 2 live like a grad student 4 a period of time. u scrounge, u scrimp, u presume u will run outta $$ b4 the next grant appears. it makes u focus.' /dam i miss him ...
Personally, I don't agree with them on credit cards. No harm in having one as long as you pay off the balance. But yes, it's not for people who are not disciplined. I would just add kid as an authorized user on an existing one preferably one you don't use much so you can easily what he is charging. That's what we did. Also, when it comes to apartments for college students, usually parent has to cosign anyway unless kid is making enough working. Also a credit card has more protection against fraud than a debit card.
I don't disagree with the idea of paying cash for a car. Usually credit cards encourage reckless spending. It's up to the cardholder to not overspend. That said, his credit limit will be low on a card since he is starting out. Wells Fargo has a card that gives 2% back on anything. There is a AAA Visa card that gives 5% back on gas, 3% on restaurants. I figure he'll want to get pizza, go out on occasion. Might as well get some cash back. Rather than use as a statement credit, I always buy stock with my cash back annually; I use my credit cards as cash. I can pay utility bills with the Wells card and get 2% cash back. The two cards I mentioned have no annual fee. Talk about what he can afford and how crucial it is to NOT go over that limit. Credit card companies make a lot of money from transactions and people not paying on time. But if you pay in full on time, you can get a small amount back. Invest it in a diversified ETF every year and it will grow into something.
Get the lowest limit no frills card out there. Put one small bill (like phone bill) on it on autopay. Dont give him the physicsl card . Thst one autopayed bill will give him a good score for the sake of insurance rates and job searching
Start them on a no annual fee 2% everything cash back card. If you’re okay with Wells Fargo the active cash is good. Or if you travel focus on no foreign transactions fee cards with a good points system. If you pay rent the BILT CARD. If you have a ton of expenses as a business owner where the benefits out-way an annual fee then possibly American Express platinum
The question I'd have for y'all... will they sell the house to an 800 credit score user over a 0 credit score user? I highly doubt they would take the 0 credit score, but maybe I'm wrong. Not the end of the world, but especially the idea of being charged more more everything as mentioned... if you're responsible, you can build credit by paying on time and 0 interest, it just builds slower. I don't see the issue in that if they already have responsible habits. Is it the fear of developing bad habits? If so, I guess I can understand.
Sellers of houses don't usually know the credit scores of the buyers. If the individual with 0 credit score went to a bank and had manual underwriting to get preapproved for a mortgage, they can compete on equal footing against somebody else with a 800 score, as long as they got preapproved before making the offer. But if neither is preapproved, the person with the 800 score would probably get approved faster and be able to finalize the offer first.
NACA Solution: Character Based Lending without Consideration of Credit Score NACA uses an alternative underwriting approach that does not consider one’s credit score. Every homebuyer goes through the same process and receives not only the same below market fixed interest rate, but also does not have to make a downpayment, and the lender pays all the closing costs. NACA Qualification involves comprehensive counseling and full-document underwriting to determine whether a borrower is ready for homeownership and can afford the approved monthly mortgage payment over the long-term. Borrowers complete realistic, verified budgets, to determine how they spend their money. This is an important financial learning experience that lays the foundation for improved personal financial management and stable homeownership.
Poor lady called a mountain lodge looking for a room with an ocean view.
Lol
Good one 😂😂
🤣🤣🤣🤣
Worse…. This is a mouse calling a cat for help!
This analogy is perfection 😂
Jade did a fantastic job answering and not attacking. Way to go Jade on being patient.
Unlike someone else does.
Yes she did. The guy was ready to laugh and hang up as soon as the caller said “credit card”😂
“When did you start listening… oh okay great, we’re happy to have you” sounds like a grandma about to drop knowledge lol. More people would listen to advice if they handle it the way she did.
Jade was most definitely in educator mode - this call provided her with an ideal "teachable moment"!
I wanted the attack. Lol
I absolutely love Jade; she is so relatable and always talks so kindly to callers without shaming or judging.
Agreed
@David-wo9un yeah much better than Dave! Dudes getting a little snarky in his old age LOL
I love his snark. Thats the benefit of old age. Say what you want and don’t worry about it.
@anniec3438 that doesn't make old age look beautiful to other people though.
@@outdoorzee919 Yea! Boo hoo. Go get a Starbucks and a massage. Dave's such a meanie! 😂
Thank you Jade for not pouncing right away and screaming about credit!!! A viewer, and a new viewer, with an honest question that was answered beautifully!
But it’s about keeping real and honest so doesn’t matter the presentation. Stay out of debt
Jade did a great job of answering the question patiently. You catch more flies with honey than with vinegar.
@@JKNat9004Amen to that
Jade is well named....she is an absolute gem!!
Love the pun. 💙
I've never seen someone handle an alternative opinion so masterfully. That was amazing.
She really was!
It was.
So refreshing to see a personality like Jade's. One that has unwavering values while also maintaining a spirit of teaching and mentorship. Dave could really take some notes!
Dave is fine. Now go take another chill pill. 😅
I have no problems with Dave. I'm not one of those uber-sensitive people.
I was hoping to here Dave on this
@joshroberson2458 Hear?
@@jimroscovius Calm down. 😅
Calling into The Ramsey Show to ask what credit card to get is like calling a car dealership to ask which bike you should get!
Ok to be perfectly fair I did this when I got my first car. I was so mad about it because I just wanted a bike to get around but Dad said I needed a car.
And I bought the bike later that day. It currently has more miles than the car.
Or going to Tesla asking for a car with a loud engine 😂
😂😂
Wow! They never gave her advice on what credit card to get. because some hotels / rental cars they will not let you rent their vehicle... Purchase food on that airplane horrible advice cuz you don't want to put your debit card out there on a regular basis
@ Seeing how I travel so much and have never had this issue your comment is funny.
Also why would you want your credit card information out there? It’s the same protection as the debit. By your logic just pay in cash oh wait airlines banned that so don’t get the snack
Jade answered this beautifully without being condescending 😊
Jade answered the question so well and so clearly.
Unfortunately a lot of apartment complexes or people that rent apartments/units don’t care about the money you have in the bank if you have no credit. I work for an apartment complex and doesn’t matter if you are willing to give them triple the rent, they will not accept you if you have bad/no credit. Not all places are like this, but a majority of them are.
You would have to be insane to rent apartments. They are not fit for human habitation. They are full of bedbugs, spiders, cockroaches and rats.
A lot but not ALL so.
@@amireallythatgrumpy6508 do you live in detroit? gotham?
Multi-family housing around colleges and universities are used to dealing with a population with no credit History. She is specifically calling for her college-age child.
But we DO need a credit score, and you have one whether you want it or not. Maybe just from your utilities. Way too many things look to credit scores such as jobs and insurance. I would rather not have to explain my credit score so just work the system. I taught my son by him getting a small loan that he paid off in six months. There are smart ways of playing the game. Googled it and there is NO SUCH THING as zero credit score. It’s “no credit score” and that’s not the same as zero credit score. Fact checked. ✔️
They called the wrong people 😂😂😂
Properly should gramph Stephen
That’s like a women calling Dr Laura and asking if it’s a good idea for her to move in her boyfriend!
😂😂
Or the right people
I think they called the exact right people
What an amazing, graceful way to handle this call, Jade. She didn't know the show obviously and you navigated that excellently.
Dave felt a disturbance in the force on the Golf range at that very moment she asked.
@ARKenMan -- Yeah, just the slightest tremor that made his golf ball fall off the tee.
@@lovethemflowers naw, jus a bad swing 🙂
Ken so gracious here letting Jade do all talking. Jade nailed it. Love u both
😂😂😂... That is too true...😂😂😂
It's pretty sweet how far the Ramesy show has come. I remember listening to Dave on the radio 20 years ago
Was it more entertaining then or now? In your opinion.
Awesome!!! That call answered my long time curiosity. Now I know how to help my teenage kids stay out of debt 🙌
😂 You do realize just as many people do not ever pay any debt due to credit cards and get benefits from using it, right?
Tbh it all comes down to just being responsible. Long before i knew dave Ramsey principals my mom gave me a credit card that i used only for gas. It worked well for me. My sis on the other hand went into crazy debt
@@Shortballa11My strategy with credit cards is similar. I only use one for household repairs and another one for online purchases, which I do sparingly, that way I'm more likely to stay in budget only for what I really need.
@@Seldz1Studies show you spend more money when you use a credit card, and that doesn’t even factor in the debt. Why are credit cards so highly marketed and so easy to get unless the owner makes a lot of money off them?
To avoid the hassle of unwriting and stuff like that, get a credit card, use it, pay it off, and never carry over a balance. It's called discipline.
She's been listening for a month and still calls in with this question?
Honestly there's a ton of callers claiming to avid listeners yet doing everything opposite 😂.
Doesn't make sense.
A month could mean she listened to one or two youtube clips this month
She's listening while making apple pies. It's a lot of multi-tasking.
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I'm not from the USA and in my country, credit scores are not a thing. They don't exist. When you buy a house or rent an apartment, you have to show your paycheck to prove you can pay
We use both along with yearly income report. Credit score is just to show how much of a risk you are for a loan.
Go down to a bank and see if they have a prepaid credit card normally u put $300 in to use and basically pay it like a credit card. Very little risk to build up credit.
And plus, use no more 30% and keep it open and make sure its no annual fee as your first card. I forgot to use mine and it drops off in 2025 that I got at the age of 20. I'm 44 now. Life is a lesson.
And build up credit WHY? lol There is no NEEEEEEEEED for a credit score to live.
I have heard good things about the Fizz card.
@@donjohnson1416 life is cheaper and more convenient with a good credit score (if you're not also carrying debt). Lower deposits when renting an apartment, wider choices of places to rent, lower insurance rates, lower mortgage rates, etc.
Except prepaid credit cards don't build credit.
The answer is Citi Double Cash. No maintenance 2% discount for all your normal purchases.
As someone who works in lending, let me correct Jade. A 0 credit score is usually seen as being worse than a bankruptcy. What they want to see is a history of making payments on time.
Couldn't you do that by showing consistent payment history on things like phone bills, utilities, rent?
@ Most people don’t understand the loan process. It’s not your loan officer you need to convince of things, it’s the underwriter. It’s a lot of work for the loan officer to gather and present to the underwriter and the underwriter to present to his clients. Most of the time they are just too lazy to deal with it.
@@barnabusdoyle4930 Only an idiot would ever go to a lender.
0:27 Ken looking at the camera 😂😂😂😂😂 so good
Did it move?
Ken's Smile ❤
This is why ppl are in debt, she said it’s scary, since when is it scary to be debt free.
not really she just wants to help him build it and if you teach them how to be responsible with them like caleb hammer says you can become a credit card person. This other ways to get houses and to rent without credit and a car its very very difficult without a huge down.
Debt free is not scary. Have no credit score is scary. I know it’s not the right answer bt apartments do in fact reject you and if you some how manage to get to a house you will be penalized. I actually got out of PMI by having a good credit score
Excellent call and excellent response. It's good that Jade did the talking because she is much more patient than Ken is. It's good that Dave wasn't on because Dave closes caller's mics very quickly and we wouldn't have gotten to hear all of the call
Just pay for your house with cash. It’s that easy
Lmao
If you have that much cash, go right ahead. Most people would be better off with a medium-term mortgage with a 20% down-payment at a low interest rate while investing the rest of the cash into the market. An 11% return beats a 3% mortgage interest rate.
@@unlimitedpower4101 the joke is most people can’t buy houses with cash, but thank you for explaining it 😅
But to your point, at current rates you might as well pay your house down at 7% ish interest. I’ll be doing that when I buy a house to derisk then hit investments heavily. Will be nice having 0 debt and a high income
@unlimitedpower4101 Good point but do 3% mortgages still exist?
My last car that I bought new in 2019 was with cash. When I told the dealer I am paying in cash for the said amount, they tried to talk me into a loan. I told them cash deal or I don't want the car. They agreed to cash deal.
Great job man!! I am planning on paying cash for my car
This credit card topic ultimately comes down to whether you can manage debt effectively or not.
Not on this channel lol.
Totally agree! Over the last 15-20 years, we have made at least $25k in free money using the credit card correctly. Always paid it off and never carried a balance EVER! You have to be wise . .. and most people aren't!
There’s nothing about how u manage debt. So u shd learn how to manage a car loan, a CC bill, etc etc. this is why ppl are in debt
@@donjohnson1416because most people cannot manage it lol.
@ I agree
Jade did amazing here, wow!
I am at the beginning of my "investment journey", planning to put 85K into dividend stocks so that I will be making up to 30% per year in dividend returns. Any advice?
Investing without proper guidance can lead to mistakes and losses. I've learned this from my own experience.If you're new to investing or don't have much time, it's best to get advice from an expert.
The issue is people have the "I want to do it myself mentality" but not equipped enough for a crash, hence get burnt. Ideally, advisors are reps for investing jobs, and at first-hand encounter, my portfolio has yielded over 300% since 2020 just after the pandemic to date.
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Credit score is a means for banks to get us to take on debt. Ignore them and save money to buy stuff when you have enough.
This is like asking a cop what is the best way to avoid speeding ticket. The answer will always be “Don’t speed!”
That’s actually a really good analogy.
This is scary advice, having a credit score doesn’t mean you’re in debt. Their like a hammer, you can hurt yourself using them but at the end of the day they’re a tool
What are you afraid of?
@ nothing, unlike those action like a credit card is cancer
I love callers who claim to be listeners and then ask for completely anti-Ramsey advice. “Hey guys, been listening for years, love the show. My question is, I want to buy a time share, should I pay for it with a 401k loan or with a HELOC?”
Student loan
She was a new listener though. She might have seen segments about tackling debt, but might now know about their disdain for all credit.
@@Overly_Hydrated Yes to her defense she's only been listening for a month.
@@Overly_Hydrated Fair point. But if you listen to the show for more than a few minutes, I think you can see where they stand on credit cards.
This is the same type of person who voted for or thinks social security was a good idea.
The Bible passage about the borrower being slave to the lender means you are obligated to pay your debts. It doesn't mean that if you borrow money from a bank, they can whip & beat you and force you to farm their land for the rest of your life. There are legal restrictions in place on credit cards on what they can and cannot do.
And to actually answer the caller's question, she can add her son as an authorized user to her accounts, which would add her credit history to his (and you don't even have to give him one of your cards). Then, to introduce him to credit cards, you can either use a secured credit card (where he has to add money to the card before using it and it can't be overdrawn) or a simple intro card like a student credit card. A good starter card would be the Discover It card.
Even Dave has said he has friends with cc and they pay them off every month and some of them are wealthy. It’s all about behavior.
People that use credit cards responsibly are playing chess. This advice is for people playing checkers
More like Tiddlywinks instead of checkers.
18 year olds can barely shower every day let alone play chess
@@danamania150 Wow that's a lot of projection right there. I guess we just had two very different types of childhoods
Americans are only capable of playing checkers. No American has the mental capacity for chess.
@@josh8491u are setting kids up for failure if u think 18 year olds who haven’t been taught real money advice are responsible credit card handlers
For me as an Austrian it so crazy how people in America belive in Kreditcards and feel its normal to be in any kind of dept.
Luckely cash is still okay to use here in Austria.
Love that David Ramsey startet this show so that people can understand what really works in reality.
Also I enjoy listening to Jades explanation. So competent, clear and understanding.
Simple solution is add the kid as a user to your longest used credit card. I did that to my two oldest kids and both 18/19 have > 780 just after a year. I don’t want them to have debt but doing this provides options.
exactly
Jade always looks so put together. I love her!! Smart and beautiful
I just worry for a credit side and how so many companies are using the credit reports and score to determine your financial situation. Insurance companies are using it to establish your premiums: better score lower payments, job applications we pull credit: poor or no credit does not get priority, I just had an individual get denied for an apartment due to no score and no credit. I understand the idea of no credit/debt once your well established but getting there can be very costly until you do.
@FurryHippoFinance this is why I believe it's best to teach teens how to manage debt. Don't get me wrong Dave's method is great for overall management of money. Having the right mind about money is key, but the kid just starting out is better off being taught how to manage rather than avoidance and don't understand stand why. Insurance and apartments just want to see if you can be relied on to make on time monthly payments. When you don't have a credit score they can't gage that so you become more of a risk which equals higher premiums.
Learn to dance with the devil through discipline, planning and budgeting; instead of complete avoidance, workarounds and jumping through hoops to stick it to creditors. I prefer efficiency.
@ItsNITREX unfortunately I'll have to teach my kid to dance and don't get devoured. Cash is still king. Cash will always be king.
@@gracelynmarie2608 actions have consequences, the older and wiser we get the more we can anticipate how our behaviour can affect our future. Same with money, when a young adult starts understanding that spending more than they earn is not sustainable if they don’t want to become homeless, they start learning how to manage money and budget; also how to increase their income…
@@gracelynmarie2608 not sure what to do with “cash is king” slogan. I don’t remember last time I had cash in my wallet. If you mean having a pile of cash in a chequing account and not earning any interest is also weird. I don’t want to sound rude, just don’t think actual cash or chequing cash is useful aside from paying monthly bills.
Can we acknowledge how wise and grounded Jade is and doesn’t judge her and jump to conclusions? Such a wise woman with such a wise and gentle response!❤
i have nothing against credit cards as long as you are responsible. having a great credit score doesn’t hurt for me responsible : paying off the cc in full biweekly with money to spare after all bills are paid.
It’s very very very hard to find an apartment in a college town that will take you with no credit score. It’ll have to be some small apartment own by some guy and it’ll 100% be a trashy place.
so, like every otha uni. apartment? 🙂
Apartments are a trashy place by definition.
I gave my kids debit cards when they were in college. That's all they need.
I got a 2% interest loan on my house because of my credit score. Notice how Jade didn’t mention her interest % 🤣
The bank is losing money off that loan right now, lol
Jade killed it
:29 - the look on Ken Coleman's face: PRICELESS!
Jade’s best call to date
@@kabaalkebulan9475 She's married pal. 😅
Ken's writing down his Chili's lunch order: Triple Dipper - mini burgers, wings and the Nashville Hot Mozzarella.
And a medium Dr. Pepper
Why the disrespect and rudeness?
😂😂😂
These comments always kill me 😂
@@benjaminhough8804 We are only joking. Calm down.
Just get a card and pay off every month. No interest and earn cash back and rewards. Smart way to save money. Key is don't spend money you don't have
What if I'm using the credit card the way it's meant for.
For example. I need to put $60 on my gas tank. Instead of using my debit card I use my credit card (boost up my credit score) and just make the full payment the following week or the exact date it shows up on my credit card account.
The point is to play the system .. most people make minimum payments monthly. That's not the right way to use a credit card. If you have to buy groceries AND YOU ALREADY HAVE THE EXACT AMOUNT IN YOUR BANK ACCOUNT. Then use the card credit to boost your score and make the FULL PAYMENT the following week.
PLAY THE SYSTEM!!
What could he do with that credit score? Low interest on a home, lower car insurance, easy to rent a home or apartment , or a car rental. A good score makes things easier, but yes you can live without it. Good luck with the pain in the butt manual underwriting. I’ve never agreed with their opposition to responsible credit card use. I mean you only need a card with a low limit as a tool to build credit.
Jade handled that extremely well; she didn't flinch, giggle, or even give anyone a funny look! Well done. Handling the situation with kindness probably converted that caller and her entire family to the Ramsey way of thinking.
The whole credit system was created to keep people broke . The idea of loaning out a 60k vehicle at 7% interest for 6 years at 600$ a month is not an actual purchase. That same 7% rate of return on that 600$ for six years an S&P index fund would make you $54,408.63 . So basically you've lost over 100k on a car loan . This is the credit system and it's a joke .
Yep. There's the opportunity cost of lost earnings and there's the interest on the car loan... $15k, in this case. All up, about $130k, and at the end of the six years you're driving a car that might only be worth $20-$30k. Might!!! You're $100+k in the hole and you don't even realize it.
This is why I buy bank bonds instead of taking out bank loans. This is why I have shares in banks rather than taking out bank loans. Yep, it took me 32 years and the deal of the century before I purchased my first new car (cash) but I don't care. If ever I decide to work for a bank, it'll be as a teller, not as a debtor. Until that day comes, the bank can work for me. Cars are a great way to burn through cash. Paying a bank a premium to burn through even more cash is lunacy.
I have a credit card. The same one I’ve had since I was 19 yrs old and am now 40. I don’t carry a balance. I use it periodically and pay it off. Nothing wrong with that. I understand their no debt philosophy but to me this is like teaching kids abstinence only instead of educating on condoms. You can have a credit card-teach them to be responsible with it.
3:13 u don’t need credit to rent. I rented my 1st place 5 mos after turning 18 (in 2016) w no co signer. The lady said no credit is better than bad credit 🤷🏾♀️ U can also rent apartments through ppl on Facebook now looking to sublease or for roommates. Main thing they bare about is 3x the rent in monthly income, 0 evictions/bankruptcy, & a clean background check. I’ve rented several apartments in my 26 yrs; no he won’t qualify for the fancy one with the gym and swimming pool but he will be able to rent from a private landlord w no co-signer.
You must live in a rural area….in my area. I can’t name a single person that didn’t have to present a credit score
the world does not revolve around you just because you were able to do it doesnt mean that other homes wont. Its like saying world hunger doesnt exist because me and all my homies eat good
Yeah that was 2016😅
Starting at 7:16, I wish I heard this three years ago. I hope this mother listens and guides her son accordingly.
For a home will you get the same interest rate or will it be higher with manual underwriting? If you have a good credit score you could find out who has the lower rate for a home and go with them. Wish the ramsy show would have a guest on to debate this issue as they are pretty biased.
Right and they are probably getting hookups to talk to the right people. The average person should just play the game (you can pay zero interest and still play the game) and get on with their lives. For the personalities this is their entire life
they hav claimed u get a like rate. not sur wot data they hav in support; also recall they state make lg. down pymnt. & do a 15 yr. term which of course affects the rate ...
While I don't disagree with paying cash and staying out of debt as Jade's point, but there's nothing wrong with keeping a credit card and paying it off. One example, I don't like using my debit card online, but I shop online frequently using my credit card. If you ever have a fraud charge, you can usually get your money back, but the bank will cancel that debit card and issue you a new one. Now you are without access to cash or paying for things for several business days until you get your new card (or have to go inside the bank). I can sacrifice the credit card for a week or so and not feel any pain. Obviously, the lesson for young and old is to not run up credit card debt.
I'd bet if you checked Jade's wallet, she has a credit card in there.
She can't keep a credit card. Ramsey is probably running credit checks on her and the other co-hosts to make sure they don't have a credit card. It's a requirement of their jobs. The Ramsey company is so anti-credit card that they don't issue corporate credit cards for their managers and sales people, they only get corporate debit cards.
To get a decent credit score you don't need to go into debt. I got a single credit card and paying in full every month I got a 750+ score in two years having it.
I love Jade’s hair, glasses, outfit in this episode!! She looks sharp 💫
She always looks sharp. Sam = luckiest dude in 'murca?
How does Ramsey overcome the difficulty in finding apartments that will accept someone without credit?
I work in student housing and luxury, and usually there’s a way in student housing, but any decent apartment typically won’t accept without a guarantor who makes a significant income AND has good credit history
In another video (over a year ago) he explained what he did for his kids when they were in college and looking for apartments ... he offered to pay the entire lease up front! As simple as that!
Do exactly as Jade states in this presentation. Show the landlord a copy of your bank statement and a history of pay receipts. This is the way that the rest of the world does it. This whole "credit score" thing is pretty much USA only, and it's a con.
@@megalodon1726 You’re talking to someone who manages and excels at keeping tabs on a local student housing market, with a national company.
I can tell you with faith, that yes, a few places do in fact offer an option, but it probably 1 in 5. While it’s still POSSIBLE, how could a parent do this in good faith knowing their limiting their child’s options when they could also teach responsible use of a simple credit card on auto pay?!?
Ramsey techniques are best for people who are not and will not be significantly wealthy. To be clear, a millionaire at 40yr old with 1/3-1/2 of it being home equity is NOT wealthy
Plenty of good options. Best to teach him how to use cards before there’s a lot of money at stake & he can dig himself into massive credit card debt. Prepare your kids for the real world & dont act like credit cards don’t exist. The vast majority of wealthy people use them, too. Ask around.
In the real world, credit scores don't exist. They only exist in America.
Credit card company saved us from a $9k bill from a rental car company. Rental company billed us after our insurance had already paid the damage claim because the rental company decided not to fix the car and sold it at auction for a loss. The credit card company paid and settled it for like $600. I will never rent a car without a credit card. Not sure why the advice is always for zero credit cards instead of responsible use?
It's their absolutist, one-size-fits-all mantra. Just like the $1000 starter emergency fund for everyone regardless of family size or monthly expenses or inflation.
Only thing I disagree with this show is how they ignore credit scores.
Why? Where is a credit score unavoidable and they don't take more cash cash instead?😂
do u understand y? not rocket science ...
They don't ignore them. They actively want to get rid of them.
@@herbertscott9575paying cash for a house is not a normal thing. Not even for those who follow Ramsey
@@rvog6584what part of my comment Imply that I lack understanding… take your time Mr. Rocket science
Just an opinion... If you're that undisciplined with the availability of money (via credit), then what will make you stop overspending once you save up the cash or when it's readily available? Having a credit card or 2 shouldn't matter to a disciplined person plus at the same time making it easier down the road to make financial moves. You can still hold the same mindset to avoid unnecessary debt.
We bought our first house in 2018. My wife was debt free with a low score. Not due to any derogatory marks but because she had not borrowed in so long and her old debts were only about $1-2k and were paid off early. I had a zero. We went with a traditional(not manually underwritten) lending agent and ill never forget the change on the agent's face from the frown when she saw our credit to the grin when she saw we actually had a good sized down payment and were not trying to max out the amount we could borrow based on income. Not only did we get what we asked for, she actually tried to upsell us to a higher loan amount. And this lady's son sounds alot better with money than we were at the time.
The other fallacy is that some people enter the credit score game and come out losers with low credit score. No credit score is 100x better and cash is king. I’ve done dozens of real estate loans with cash and my first 2 personal residences with manual underwriting and I did have to provide tax returns.
I disagree with “never “ using a credit card. Because now you are dealing with the “exceptions “. It’s possible to find a place to rent that doesn’t check credit score. But housing is limited. But now you are jumping through hoops when you don’t need to. Other advice from Ramsey is great. Having good credit isn’t a huge disadvantage vs. no credit
You have to jump through hoops to keep a good score too lol.
@@donjohnson1416 Not really, put my son on a card when he was in high school. He didn't even know. Then he got a card in college that he pays off each month.
@@archeanchaos-s4c - So instead of him learning the value of a good score by building it steadily for himself, you just dumped him into a world that will give him way more credit than he can handle.
It’s funny how they try to find a workaround for every life situation where you need to jump through hoops just to stick it to CC companies, lol. Why not teach people to be responsible? Start with prepaid cards to learn good money habits and budgeting and move to real CC’s as part of your overall budget to use money for specific purposes, etc. Then automating most of these things. If you start spending more again, go back to pre-paid. Why make your life harder? It’s like beating a dead horse with them…
@@ItsNITREXIt's funny and it's dumb. Dave should drop this mantra from the platform.
Jade was masterful handling this call.
I was not in the US, but the UK when I bought my house, and I effectively did the same thing, payslips, outgoings, rental history (no formal term for it I don't think). But all well within my budget (mortgage payments were about equal to the rent, no biggie).
I'm definitely jaded on this topic. While I understand the mom's intentions, my mom did the exact same thing for me. She got me a Capital One card with a $3400 limit back in 2016. She was using it herself and paying the balance off every month to help build me credit. Somehwere along the line she gave it to me and told me to only use it sparingly and as long as I didn't run it up, she'd pay the monthly payment. Well long story short, between 2022 and 2023 I ended up in debt and maxed the card out eventually. I actually just finished paying it off a few days ago. I started in January 2024 and finished in October 2024. It was NOT easy by the way to do it that fast. I had to work a lot of overtime, but after becoming a fan of this show, I've been determined to not stay in debt.
All the stuff you have to provide to prove your creditworthiness i had to provide even with a high credit score
For anybody who came to the video looking for an actual answer to the question. I “store only credit card” can be an AWESOME first credit card. If you pick something you’ll go to often, as well as something you won’t spend too much on. Store only credit cards can be an amazing way to get started with credit cards
To the lady commentator, yes it is about how you interact with debt. It is not about can you afford the item. Banks aren't really supposed to figure out if we can afford it (within reasonable standards) they are only interested in can you manage debt effectively. Credit scores are your past performance and quite often past performance predicts future performance.
Let’s be honest, Jade. Would Dave Ramsey rent to someone with a ZERO credit score ??? Nope he wouldn’t ! Trying to find that landlord is near impossible !
proof or shut up. Dave has had a few 1000 tenants lifetime likely. betcha several @ the vry least had no credit scor cause they were baby steps adherents ...
@ I’ve heard him say him say before the kind of requirements he has for his tenants and some he wouldn’t rent …….so…….shut up
Yes he would as long as they can prove that they can pay the rent and make payments on time. Unlike most landlords he's not dumb enough to let a computer tell him what to do or base a decision on one number.
@@mikejorgensen6458 not proof. /smh
I love how Ken just checked right out of this conversation. Busy doing a Sudoku
lunch order duh 🙂
You might all be laughing at her for calling in with this question, but because of this call and the simplification of the response, so many people who know nothing about Dave Ramsey will watch this and have their eyes opened! This call will help a lot of people, I’m glad she called in!
Jade was very professional on this one. Ken was all about being ironic, but Jade just treated it to a very high standard.
Differently should save up for a car. You don’t want to start out in life with a bunch of debt. Don’t do it. Listen to Jade 🙏
I wish I have known this when I moved from the Philippines 35 years ago since I have no credit score when I moved and bought my first car here in America.
What is the interest rate on a mortgage loan if someone has no credit history?
Depends. How much does that individual make per month, year or in the last 2 years? What percentage are they putting down as a down payment? How much do they have in checking, savings, stocks, CD's, money market, retirement ? Does thier financial statements reflect on time payments for their rent, utilities ECT for 2+ years? As Jade stated, this comes down to the financial institution and methodology of analyzing a homebuyer. Instead of a FICO score, they will look at the total value of your entire financial profile. Manual Underwriting.
@ Got it! Thank you!
That's so interesting, what Jade is describing is exactly how people do it here in Europe. There's no such thing as a credit score here, and it's rare that people have credit card debt.
Jade is such a sweetie. She was much nicer than I would have been. 😅😅
Best description of the zero credit score ive heard from the show! It sounds so much more exciting that way to someone trying to get there!
They have a template that try to fit everyone in. Doesn’t work like that for everyone. What I don’t understand is why it’s bad to have 800+ credit score and no debt? Like I do. Why will I want to have 0 instead and have to be explaining myself around when with my credit all renters are basically begging me to apply. That’s nonsense. And also no, there is no many places that don’t care about your credit score, and if they don’t, is not going to be a good neighborhood for sure.
One thing you're forgetting. Credit scores only exist in the USA. And every single neighborhood in the USA is a bad one.
Fact check, doesn't really work. I did the 0 credit score years ago. 2 years I didn't open a line of credit paid everything in cash. Unfortunately you cannot negotiate lower rates. You can't just pay 3 months of rent upfront without them looking at you sideways either. Even private land owners think you are setting up a grow house or something.
You can easily get a credit card with a very low limit, just teach good credit card behavior instead of avoiding the product entirely which does a lot to protect you
It's incredibly important to establish a good credit score early in life. Great mom!
No it isn't. Just stay away from backwards countries with credit scores.
I loved this call, Jade handled it extraordinarily well! I agree 100%, nobody needs credit. Listen to the caller, all this credit anxiety because her sons going to college. College is not an excuse to blow the lid on credit card use. If anything, you want to be extremely cheap, thrifty and miserly with all expenses(especially tuition/housing) during that time. If you have a child/niece/nephew/family member in college..help them out, try to assist them in staying close to debt free during that period. We've heard the student loan horror stories, lets stop reproducing debt while we are trying to better ourselves for the job market. A lot of corporations/Jobs run credit checks now...not for the score but for the adverse content. Stay debt free and wise!
my Dad used 2 say 'every1 needs 2 live like a grad student 4 a period of time. u scrounge, u scrimp, u presume u will run outta $$ b4 the next grant appears. it makes u focus.' /dam i miss him ...
Personally, I don't agree with them on credit cards. No harm in having one as long as you pay off the balance. But yes, it's not for people who are not disciplined. I would just add kid as an authorized user on an existing one preferably one you don't use much so you can easily what he is charging. That's what we did. Also, when it comes to apartments for college students, usually parent has to cosign anyway unless kid is making enough working. Also a credit card has more protection against fraud than a debit card.
I don't disagree with the idea of paying cash for a car. Usually credit cards encourage reckless spending. It's up to the cardholder to not overspend. That said, his credit limit will be low on a card since he is starting out. Wells Fargo has a card that gives 2% back on anything. There is a AAA Visa card that gives 5% back on gas, 3% on restaurants. I figure he'll want to get pizza, go out on occasion. Might as well get some cash back. Rather than use as a statement credit, I always buy stock with my cash back annually; I use my credit cards as cash. I can pay utility bills with the Wells card and get 2% cash back. The two cards I mentioned have no annual fee. Talk about what he can afford and how crucial it is to NOT go over that limit. Credit card companies make a lot of money from transactions and people not paying on time. But if you pay in full on time, you can get a small amount back. Invest it in a diversified ETF every year and it will grow into something.
Get the lowest limit no frills card out there. Put one small bill (like phone bill) on it on autopay. Dont give him the physicsl card . Thst one autopayed bill will give him a good score for the sake of insurance rates and job searching
this woman is so awesomely amazing, intelligent, has a way with words and is drop dead gorgeous😍😍😍😍
Start them on a no annual fee 2% everything cash back card. If you’re okay with Wells Fargo the active cash is good. Or if you travel focus on no foreign transactions fee cards with a good points system. If you pay rent the BILT CARD. If you have a ton of expenses as a business owner where the benefits out-way an annual fee then possibly American Express platinum
Live within your means and stick to a budget.
The question I'd have for y'all... will they sell the house to an 800 credit score user over a 0 credit score user? I highly doubt they would take the 0 credit score, but maybe I'm wrong. Not the end of the world, but especially the idea of being charged more more everything as mentioned... if you're responsible, you can build credit by paying on time and 0 interest, it just builds slower. I don't see the issue in that if they already have responsible habits. Is it the fear of developing bad habits? If so, I guess I can understand.
Sellers of houses don't usually know the credit scores of the buyers. If the individual with 0 credit score went to a bank and had manual underwriting to get preapproved for a mortgage, they can compete on equal footing against somebody else with a 800 score, as long as they got preapproved before making the offer. But if neither is preapproved, the person with the 800 score would probably get approved faster and be able to finalize the offer first.
@@megalodon1726 Ah okay that makes sense! So if you plan ahead, you can totally make it work from the sounds of it.
The way Ken was blown away by the first question about which credit card. "I don't think I've ever heard that question on this program. "
im a casual listener 4 several yrs. & had neva heard it /shrug
@rvog6584 , she dialed the wrong show with that question. Lolol
NACA Solution: Character Based Lending without Consideration of Credit Score
NACA uses an alternative underwriting approach that does not consider one’s credit score. Every homebuyer goes through the same process and receives not only the same below market fixed interest rate, but also does not have to make a downpayment, and the lender pays all the closing costs. NACA Qualification involves comprehensive counseling and full-document underwriting to determine whether a borrower is ready for homeownership and can afford the approved monthly mortgage payment over the long-term. Borrowers complete realistic, verified budgets, to determine how they spend their money. This is an important financial learning experience that lays the foundation for improved personal financial management and stable homeownership.