@Anonymous wrote:OK, well I have been seeing Dave Ramsey plastered all over You Tube etc, warning the public that having a FICO score is a horrible thing to do and telling people how to avoid having a FICO score. That having a score will ruin your life and so will having any credit cards.
Am I missing something here? Credit cards over the decades (I wont say how many decades LOL) have earned me a huge amount of cash back that I would have never of seen if not for the credit cards. Most people are responsible and having credit in my eyes is positive.
Yet he touts that FICO score will ruin your life. I see it as the opposite. Can someone please tell me what I am missing here?
I have seen many of his videos and I just do not understand where he is coming from. Not everyone is a multi millionaire like he is so I think he is giving really bad advice to people who look to him for help. Again, let me know what I am missing here.
Thanks
Mark
(Disclaimer: The following is just one person's opinion of Dave Ramsey. Take it for what it's worth to you.)
I find Ramsey's advice to be of great use...if the year was 1955 and savings and loans were still predominant (For those who are unaware, savings and loans are basically set up to save your paycheck and use a loan to buy a home.).
But the ushering in of a new financial world where inflation has run amok and an economy that floats on credit has made the use of credit a near-necessity for most people. His insistence that people shun credit and basically live a life using cash only sounds great...until you add up the myriad of modern consummables that are suddenly unavailable to you.
His "live like no one else" mantra means decades of not enjoying many things that enhance life in exchange for the ability to enjoy the last 48 months before death.
No deal.
One other thing about his advice:
I have heard him tell callers to pay small credit card balances off first...and then pay larger ones off as you are able or flat-out do not pay them. Since he doesn't believe in the usefulness of a FICO score, that would fit with his credit beliefs. However, that irresponsible advice can lead to credit card users being sued and wages garnished. That reality goes WAY beyond FICO scores. It can impede your ability to secure jobs that check credit or buy a house down the road.
If you have income that lends itself to paying cash for everything, Ramsey is your guy.
If you want to manage credit responsibly and live your best life from start to finish, then go with MyFico 
I think that he preaches to a specific audience. That group has been irresponsible with their finances and values instant gratification above all else. I had been a (debit) card carrying member of that group for years.
If one is responsible with one's finances and doesn't spend beyond one's means, there is little reason to follow his advice.
It sounds like you're just not part of his target audience. I don't think you're missing anything. Perhaps you've just figured out how to make credit cards work for you.
@quikj9 wrote:I think that he preaches to a specific audience. That group has been irresponsible with their finances and values instant gratification above all else. I had been a (debit) card carrying member of that group for years.
If one is responsible with one's finances and doesn't spend beyond one's means, there is little reason to follow his advice.
It sounds like you're just not part of his target audience. I don't think you're missing anything. Perhaps you've just figured out how to make credit cards work for you.
THIS. Like others have said, Dave Ramsey caters to those who have been irresponsible with credit, or simply don't know how to properly manage their debt. (Living beyond their means) He is a self-made millionaire who has the ability to live as a pure cash-buyer.....and that's great, good for dave Ramsey.....but most of us can't cut a check for a new home or vehicle. We have no choice but to rely on FICO scores to get the interest rates we need. He is a rich man making a living giving advice to an audience who can't possibly live the lifestyle he does....it's a great spin....and it's very sound advice to some degree, but it's simply not realistic for the mainstream.
On Deck: No Plans Currently
@quikj9 wrote:I think that he preaches to a specific audience. That group has been irresponsible with their finances and values instant gratification above all else. I had been a (debit) card carrying member of that group for years.
If one is responsible with one's finances and doesn't spend beyond one's means, there is little reason to follow his advice.
It sounds like you're just not part of his target audience. I don't think you're missing anything. Perhaps you've just figured out how to make credit cards work for you.
I think this is accurate. If you go to r/CreditCards on Reddit, you'll find most there trash talking Dave Ramsey's advice. However, most here, and there, are responsible credit card users. We are not his target audience.
Think of his advice as being like AA. For those with problems, drastic measures are necessary. He is targeting those with issues. I think that one weakness is that he makes is sounds like his advice is universal. His advice does not apply to us, even though he can come across as sounding like it applies to everybody.
@cws-21 wrote:I generally disagree with much of Dave Ramsey's advice as it pertains to me and my life. However, he is probably correct that credit cards, especially rewards credit cards, encourage more spending than if one were to use only cash.
I disagree with even that much. In my book, Dave Ramsey is a snake oil salesman who's hit it big, but he's still an idiot. Much of his advice is directly contrary to good long term financial health; my favorite is to never ever borrow money for anything except a mortgage. Yeah, like I'm going to take money out of my investments to buy a car when I can get zero or near-zero percent financing for the same car; super stupid advice to pay cash for such things.
