Why Dave Ramsey Is WRONG About Credit Cards

hey everybody welcome back to whiteboard finance my name is Marco and I'm here to help you master your money and build your wealth in today's video we're gonna be talking about my buddy Dave Ramsey and why he is wrong about credit cards stay tuned so before all the Dave Ramsey fans down vote this video into oblivion because I know you're gonna do it actually watch the entire video use your ears in your brain and hear me out on this one okay Dave's philosophy is essentially that credit cards are highly marketed and advertised because it makes the companies and banks a ton of money I agree they do number two studies show that using a credit card or plastic activates different parts of the brain as opposed to using cash so when you use cash that activates a pain receptor in your brain showing your brain or your body hey stop spending this cash it hurts when you swipe the plastic it's kind of like yeah no big deal let's keep the ball rolling you know keep the drinks coming or whatever and number three this is Dave's philosophy which I don't agree with I do agree with the first two everyone is irresponsible when it comes to their spending habits and no one has control over themselves and the decisions they make that's why they don't they shouldn't have a credit card because they're all twelve-year-old children that have no idea how to actually be disciplined with their money although I do agree with Dave on a lot of these points Dave can't possibly speak for everyone on this that's impossible okay there's 350 million people in the United States in my entire life I've paid this much an interest okay on credit cards this much check it out zero zero point zero zero to be exact okay so in my entire life I've paid zero dollars in credit card interest because I treat my credit cards like cash and so does forty five percent of the country according to Dave's own stats forty five percent of americans pay their credit card off in full every single month meaning they treat it like a debit card like cash okay the APR could be one million percent interest on these cards and it wouldn't affect me or forty five percent of the country you know why because we treat it like cash we pay it off in full at the end of every month so I reap all the benefits and the rewards that credit cards give me without paying any of the interest for it so let's talk about the benefits of credit cards if you're financially responsible so number one is a no-brainer everyone knows this okay almost drop my eraser how excited I am to talk about credit cards number one credit cards offer better protection okay consumer protection fraud protection the whole shebang okay I've had people try and rip me off on eBay overseas and the credit card company immediately had my back and reversed that the Fair Credit Billing Act allows credit card users to dispute unauthorized purchases or purchases of goods that are damaged or lost during shipping so someone can't just send you a broken item say too bad you already paid for it SIA you're already insured by your credit card for that money back they're always gonna have your back from being a customer of theirs okay but if the item was bought with a debit card it cannot be reversed unless the merchant is willing to do so so good luck with that also if you have someone steal your credit card information you simply cancel the card and that's it done finished no big deal if someone steals your debit card information it causes a huge hassle and a ton of headaches because it's linked directly to your checking or savings account renting a car is also automatically insured through most credit cards I use the Chase Sapphire premium if you want to learn more about that check out the link in the description below it's very favorable for traveling so fees renting cars airplanes flights all that stuff I have so many benefits when I use this card that I wouldn't get if I used a regular debit card number two is also what people actually know mostly about credit cards is for their rewards and cash back offers okay now call this cash back so now before you guys go crazy and start commenting about this o cash rewards cash back you're just spending more money to get money back especially when dave says I don't know any millionaires who got there through airline miles or buying vehicles on credit cards no that's not the point of what this is I'm going to travel anyway okay I'm going to go out to eat anyway whether it's with cash whether it's a credit card whether it's with a debit card I already know my budget I'm not 12 okay I'm not a child I know exactly what to spend my money on so why not get 25 percent more or whatever the reward is towards that traveling or towards that eating or going out that I'm gonna do anyway okay so here's a screenshot of a trip I'm taking to Chicago I got ninety one dollars and eighty four cents off my hotel room just by using my credit card it's a trip I was going to take anyway my wife has to go there for school so I have to go to Chicago anyway might as well get ninety one dollars and 84 cents off so you're obviously not gonna get rich off of points but if you're gonna make these purchases anyway why not get the benefit number three and I see this a lot in my comment section especially from younger people it helps you build your credit okay so when you have a history of credit or a history of paying back stuff aka being credit worthy it opens up a whole world of being able to qualify for lower interest rates if you have to take out a loan like a mortgage for example so my mom made me an authorized user on her Discover card like 26 years ago and I've had pretty much an 800 credit score ever since not because of that but it helps I've paid off all my credit cards and fooled my entire life and right now I'm in that like high seven hundreds almost that eight hundred is because of that so my wife and I are shopping for a house and the interest rate we're gonna get is much lower and it's gonna be the lowest possible rate because of our good credit scores because of paying off car loans and also credit card balances every month okay so if you do the math on a 15-year mortgage or a 30-year mortgage do the math on that interest rate savings if we were at a lower tier or a worse tier say we weren't that eight hundred fretted score that we pretty much are we'd be in a higher interest here we can't pay for a house with cash okay I don't know many people that can so all the savings just in the interest rate alone over those fifteen and thirty years or however long the mortgages that'sthat's pays for itself many times over because I haven't paid for any interest it's an infinite return number four and the last point why credit cards aren't the worst thing in the world if you actually aren't twelve and know how to manage your money is the bonuses so just for signing up for my chase card it's basically giving me six hundred dollars for free or 750 and travel bonuses so I just used my card like I would basically like cash for those three or four months we have to meet a certain dollar amount and voila I got a free six hundred dollars or 750 if I use it towards travel so you can learn more about that card again in the link below but at the end of the day bonuses are not a reason to get a credit card okay bonuses are just that's exactly what they are they're a bonus you know how to manage your money you're spending that money on anyway gas groceries clothes whatever why not get you know six hundred dollars for free pays for half a trip to wherever you want to go so at the end of the day you guys in summary I agree a lot with what dave has to say let me give Dave a fair shake here promote his book a little bit don't use credit cards they're the devil I agree with what a lot Dave has to say but I also have self-discipline I'm I'm a grown person I know exactly how much I can spend on what his whole shtick of like impulse purchases and spending more because the psychological pain ain't there look dude at the end of the day like if if you're that gullible and you're gonna swipe the card and not think about what you're doing then maybe you deserve that pain if you're a responsible adult and you pay it off in full like forty five percent of the country does credit cards in my perspective or my opinion or a okay please share the video with one friend who isn't 12 or who doesn't manage their finances like they're 12 give the video a like and subscribe if you haven't already and tag Dave Ramsey in this video let's see what he has to say thank you so much have a great day [Music]

Channel: Marko - WhiteBoard Finance

Views: 272,995

Keywords: dave ramsey credit cards, dave ramsey credit card points, dave ramsey credit card rant, why dave ramsey is wrong about credit cards, why dave ramsey hate credit cards, dave ramsey credit card debt, dave ramsey credit cards vs debit, are credit cards bad, are credit cards good or bad, are credit cards evil, credit card benefits, benefits of credit cards, whiteboard finance, dave ramsey is wrong about credit cards, credit cards dave ramsey, paying off credit cards dave ramsey

Id: Xj-ATDoWMqk

Length: 8min 37sec (517 seconds)

Published: Thu Oct 03 2019