Close Out ALL Of Your Credit Cards - Dave Ramsey Rant
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- čas přidán 5. 09. 2024
- Close Out ALL Of Your Credit Cards - Dave Ramsey Rant
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I just paid off my credit card today and I’m looking at it like wow I could’ve had all that money in my bank account 🤒
I say this to myself all the time it burns my soul
Same here. Ouch!
I paid off my $250 secured one (again) minus the interest charge for that month, the debt snowball is really helpful. If I cancel it I should get my deposit back too.
No you wouldn't, that debt is something you own, it just reminds you just spent the damn money... jesus.
Not having a credit card for me is taking a stand against the whole corrupt system. Thanks Dave !!
I agree! Close ALL credit cards. It’s been the best thing that ever happened to me!!! It’s been a long road getting here. But I’m free!!!!!
How did you do that? Thanks
I got 4 debit cars and 4 credit cards. The 4 credit cards are scheduled to be destroyed on Friday! 😎
Did that Friday come? Or Friday Never comes 😂 like tomorrow never comes
Respect to Dave for being honest about way most folks handle CC's.
When a Capital One credit card ad pops up before the video. haha!
I have 2 CC. Barely ever use them and pay them off at the same moment if I ever use them. Just have them for the benefits. But Dave is right about his strict CC policy. The people who come to him are mostly irresponsible with money. So having a CC is poison for them.
"But Dave is right about his strict CC policy. The people who come to him are mostly irresponsible with money. So having a CC is poison for them."
Even if you literally only use it to pay for your car insurance, gas, cable bill, phone bill, utilities and the like and always pay it on time and in full he says no. So it has little-to-nothing to do with the financial position of the callers.
@@rosen380 I know that. But I know myself and can operate in a grey area. He obviously needs to put strict rules given the clientele he has also I don't need to follow his rules a 100% given that I have huge savings, no debts, passive income and only few liabilities.
You are still in denial you need to close the cards
@@algonquin7187 nah credit cards are really good if you can manage money because of all the rewards you can get using them. Money back is amazing
@@Emperor-nl4xv you must be dumber than a rock....its all made up to keep you hooked on the cards
Dave’s right. I haven’t had a credit card for 5 years and I have way more money in the bank, invested and NO DEBT. I’m not tempted to buy things I can’t afford with someone else’s money. This isn’t about miles or rewards or responsibility, it’s about freedom. Those who consider themselves responsible CC users are really just playing with fire and haven’t gotten burned yet. This learned behavior will eventually scorch them when things turn sour (lost job, emergencies) when big expenses will inevitably go on the card and won’t be paid off every week or month due to lack of income stream or high balance/monthly minimums.
Well if you have more money in the bank than before it is because your better at living below your means and not spending like crazy. I save 50%+ of our income a month and we have a CC. Some of us that use a CC have a huge savings and high net worth.
Dave's rant mostly applies to his core audience of people who are struggling with debt and lack self control. I completely get it but as others have stated, if you play the game right and don't hold a monthly balance, you can benefit significantly. I got 2 thousand dollars worth of credit card reward points in the last year which got me 2 vacations for practically pennies out of pocket. I use my cards for spending that I'd otherwise do with my debit card. Again, the big element is SELF CONTROL AND FINANCIAL RESPONSIBILITY.
Which you have none of
True.If you are wise enough you learn how to.
@@MrJr298 it's actually pretty easy. It's all psychology. You simply use your card for every day spending and pay it off in full every week or to avoid accumulation and interest. If you do a few sign up bonuses a year that's easily over 1K in value without much effort.
pccope05 Incorrect. You may think you are winning with those credit cards, but the card company has you right where they want you. Imagine all the things you wouldn’t be buying if you didn’t hVe that card. Countless items online, not going to restaurants, not buying the latest gadget. And you would be saving a ton. The card company is happy that you think you are winning this battle.
ACR are you serious? Do you really think that no one in the world is capable of self-control once they have a credit card? If you treat a credit card as if it were a debit card, you’re purchasing things you would have purchased with or without the credit card, and you’re not purchasing items you don’t have the money for. I’ve never carried a balance on a credit card in my life, but I earned 3k in cash back last year simply by using a credit card. Sure, it’s not going to make me rich, but it is extra money.
I can see why Dave is so opposed to credit cards but again it’s only people who don’t know how to manage these cards that suffer the most, for those of us who do we enjoy the free cash back & miles points that they have to offer. 😁
@@Jordan-lr4bi absolutely right. It's "STUPID" to think we are smarter then the credit card companies who spend endless amounts of money hooking you and keeping you. To think we can outwit them is absurb, they live to keep you there. They win. You win when they no longer have a hold on you. Why would anyone need a credit card if they were "so good with money?"
Tyler Dunford
Financially responsible credit card users are doing fine.
I don't recommend them for people like you.
You need discipline and financial common sense.
Over 30 years using my Platinum Visa and AmexBlue all over the U.S. And over 50 countries,5 continents,over 40 different airlines,and over 3 million miles with no late fees,penalties,debt,etc. with them.
Always used them like debit cards long before there were debit cards.
I use them to pay my personal property tax and auto/home insurance each year, weekly gas and groceries,occasional stops at Home Depot,car maintenance and Amazon,etc..
Always have a balance of $600-$1200 cash in my credit card accounts and $150/wk goes into my AmexBlue.
Also had a home remodeling job done using my credit card paying around $2k a week.
Never in debt.
And as far as flights go...I fly free anywhere in the world as a lifetime benefit.
And for the thousandth time the awards they offer are just perks. I can take them or leave them personally but others enjoy them.
Do have a lot of points though and have been using some of them to pay my monthly Audible and Netflix subscriptions for over 4 years so far.
And I own several thousand shares of Visa and MasterCard stock purchased years ago at around $5 a share in my Roth IRA which I think for me is the best credit card cash award a person can get.
No stress.
Yea I agree with you and disagree with most of Dave's viewers on this one. I understand that people who arent financially responsible should close them. But for people who are. It's free money....
I use a credit card to buy gas and pay two of my bills (auto insurance and gym fee) and pay off the balance every month. I've been doing this for years. 2 months ago I cashed in a $150 gift card and it's not the first time I've done that with this card. I'm sure someone will try to nitpick but it's literally free money.
@@Soccerking193 credit cards are inherently racist and by you using them you are supporting that. Which makes you racist.
Jordan Gaffney well luckily for me i never spend more then what i need to I’m patient enough to wait for the rewards.
Close them only if you aren't responsible enough not to overuse them. For those of us who pay them off in full every month they're a great way to a great credit history and whatever rewards come along the way.
tipoomaster why not pay in cash
@@IJoeAceJRI Exactly.
Close them if you don’t use or feel u need an extra bill and instead invest that money
Here is my take worth .01 cents. The problem isn't the credit card...it is just a tool and if you are not responsible it can get you in trouble. The main root of the issue is how much you spend you can be a frugal person with a CC or a big time spender that doesn't use a CC. If you cant use like cash and ever owe money on it at the end of the month then you need to destroy them since you aren't responsible enough to have a CC.
Say that louder 🗣
Aside from the cash back you also get much stronger protection with credit cards than debit cards at least here in the UK
I follow Dave's plan but not this one. I cut up all my credit cards,deleted my accounts online, removed the apps off my phone, and deleted numbers I had associated with the cards. But my sister closed her account and her credit score dropped 130 points. That's insane. I believe if you are at a point financially where you can pay for a house and car cash then yes close them. But for me I'm not at that point. I have paid all of my cards off and my points went up about 100 points. But I will NEVER use credit cards again. It's all about self-control and discipline.
I can see what Mr. Ramsey is saying. I myself am trying to use cash or debit and so far, so good. I don't owe anything on my credit cards. I even cut two of them up as they were balance transfer cards. I'll just let those get closed naturally after not using them for so long. Statistics show, even when you use a CC responsibly, people tend to spend more with them than they'd spend with cash. That is the whole idea behind his rationale of not using them. One thing leads to another then, BOOM, you are in debt. Death and taxes are an inevitable part of life and unfortunately so is debt. I was at the grocery store the other day and when I paid with cash, I immediately felt the impact. Whereas with a CC, it just didn't hit the same.
My credit card company refused to close the account after I paid it off. I spent at least 15 minutes just telling them to close it. When I asked them if they were refusing they said no and continued talking about how I really didn't want to close it.
It hampers the credit score if we close a credit card. At least in India. Donno about yours
Should you close them before or after paying them off??
I’m partial to this. Let’s say someone steals or you lost your debit card. During that time someone else uses it to buy stuff and now you have $0 dollars in your checking account. You dispute it with the bank and usually they freeze the account and send you a new debit card with a different number. Then they do an investigation to make sure the fraud claim is legit and that can take a day or 2. So you have $0 dollars to spend while all this happens and you have to buy gas or food. So what you going to do if you don’t have a credit card to get you through in the meantime
That's the kind of thing an emergency fund is for.
Step 1 of Dave Ramsey's Baby Steps is to have a starter fund of $1000, and step 3 is to save 3-6 months of expenses. It's so you can deal with Murphy when he comes calling.
Not if you got overdraft protection and your $1k is in a savings account.
@@jdb2002 what happens to a person who was working up to an emergency fund but doesn't have it yet, or that fund was in the savings, your savings account is useless if it happens when the bank is closed
@@SAAN27 Your debit card can work in ATM'S, and can be tied to your savings account too, so you can access both.
As for your other question, you'll have to use what you have. I've had to dip into my Emergency Fund a few times, and it set me back. But after the crisis has passed, you start from where you are and keep moving forward.
Credit cards are good when you use them as cash. Once you buy something pay it off and get cash back. So basically you are getting free money to just pay a card off on time.
Dave Ramsey has a net worth of 50 million, why would anybody get a credit card, loan, when he can pay it straight cash, what if someone is struggling to make it, and their car breaks down, and all you have is a credit card, those are some instances were someone doesn't have cash that are forced to use it...if your car breaks down and you don't have a credit card(like Ramsey says you shouldn't) and don't have cash, do you wait to save up to fix it? A lot of people need their cars to get to work, I believe that if your responsible with finances, you should be able to have an emergency credit card, if everyone in this country had a net worth of 50 mil, then you would be an idiot to have any sort of credit/debt. I know Ramsey worked hard for it, but a lot of people are not fortunate to be raised in a good, wealthy family....
Simple advice. So true.
Im so happy i just closed total of 4 credit cards. Thank you God
If you are bad with money, then by all means, don't use credit cards. But my wife and I make thousands of dollars a year in points and cash from sign up bonuses, and this pays for all of our travel and partially funds our retirement accounts. Rather than not using credit cards, my advice would be to become good with money. Learn about pre-tax retirement accounts (and try to put as much in as you reasonably can), ensure you pay your credit cards each month, and avoid taking on debt in as many forms as possible (no, you don't need a new car) and you will start reaping the benefits. It's amazing how much your life will improve if you decide to become good with money. But if you're not willing to do that, then you're probably making one of the worst decisions of your life and that tells me that you are probably someone who makes bad decisions and shouldn't own credit cards.
I have a 3% cash back credit card that gets paid off weekly. Seems like you're giving up extra money by not having a credit card.
2 words. CASH BACK. I'll let the dummies pay all the interest and late fees that fund my benefits!
It feels so good to watch capital one credit card commercials and say wow I'm not their slave anymore.
Ridiculous suggestion/s. This doesn't allow people options. I'd say have many credit cards with zero balances. That's my goal.
I was almost insolvent dave I have 4 left I'm been closing them as I pay them off it feels Amazing
Only using a secured card for the main purpose of a home.
Don’t know if you get a section 75 in the USA with a credit card but in the uk we do, I always pay for large items or flights with my credit card just for the section 75 cover...but pay in full, usually the same day.
i have a lot of credit cards with 0 balances lol
That's why I'm not big on credit cards. I think one credit card is fine not 10 credit cards lol🤣🤣
Instead of using a cc how about investing the money u would have used for it
I have one credit card left which I have to pay $1586.00 almost there.
I got credit cards and love them. Pay off the card every month and never spend more than what’s in my bank account. 99% of the time I spend less than what’s in my account every month.
He's wrong on credit cards. Emergencies come up in life. And sometimes we need to put some expenses on credit cards -- car repairs, home repairs, etc. Not ideal, but it's the reality.
"No" - responsible credit card users.
Debit cards are more problematic when it comes to fraud (which happens every second these days). I just pay my CC in full every month
My debit card is covered 100% for fraud.
Skweepa only if you report it within the first 48 hours. After that, you’re liable up to $500. And if you don’t catch it within 60 days, you’re on the hook for the full amount. Not the case with CCs.
Debit cards have the same protection as a credit card.
Josh B That’d be nice, but it’s not true. Look up the Electronic Funds Transfer Act.
you only need 1 or 2 credit cards thats it no more no less only secured credit card
That would crash his score
What if you have open accounts but they are all paid off, should you still close them even if you know you will never use them again? Would it be safe to just let them sit and forget about them?
Just keep the oldest one open and close the rest of them out
What is a credit card?I mean us well off people use cash,You feel me!👌
Then why are you trolling Dave's page🗣
That's fine if you're sitting on piles of cash and have no need for a credit score. Out of touch.
That would be what baby steps one and three are for: piles of cash!
The only thing a credit score is good for is low mortgage rates. AND Dave said a million times, there are lenders who will consider other factors outside of credit score. It's called underwriting.
Should I close my cc account with a balance on it?
I just applied and got approved for a new credit card.
My dad never missed a payment or was behind, always paid them in full each month.
Every one of these credit card rants that Dave does is hilarious because there is always a ton of butthurt credit card users in the comments. It's like a drug! "I can put the credit card down at any time I want! I'm not addicted!!" Lol.
Addicted to what getting in debt? I have had one for like 20 years and no CC debt. Not saying it is common but some people are responsible.
I have a method i have been using for over 10 years with my credit cards. I haven't paid interest or any finance charges in over 10 years. I pay my cards off every month and i make money in rewards every year.
There is no method it is just called spending less than you make and having money saved on the side for any big purchase.
@@markg999 Hello Mark, No i have a method and works for me. I also have the money saved to make these actual purchases but i use my credit cards instead and earn cash back. It's obvious i have the money if i am able to pay off these transactions and avoid paying interest and finance charges on these purchases. I have done this for over 10 years. I make more money in cash back. I like Dave Ramsey that's why i am on youtube listening to him but this method works for me and has worked for me for a very long time. If you use credit cards responsibly they are not an issue. Thanks!
You can’t rent a car w/a debit card.
Yes you can they just put a hold on it.
Donna Harouff not in Chicago you can’t.
Brian Waller if you close out all your credit accounts, then your FICO score goes sown the tubes, so when they do the credit check on you, they won’t accept it cuz it will be bad..
No good credit, no car rental.
Huh?? Yea you can. 😂
Brian Waller tell that to Enterprise car rental
No debit card gets you a rental.
I only use my credit card for gas as I get cash back and gift cards I’m very responsible and never carry a balance. I just use my credit because I’m gonna get gas anyways might as well get paid for it.
I have 2 CC and I have had them for over 5 years. No way I will close them. I only owe $500 all together.
Why do you owe any money just pay off every month...if you can't do that destroy them.
I have paid $0.00 dollars in interest in credit cards
Dumb question? No. Dumb person is more like it.
It sounds like Lucas has developed self-control if he went from high balances to zero balance. I would keep the cards and only use them for small expenses.
Absolutely 💯
So how do you buy a plane ticket without one?
I buy my plane tickets just fine with a debit card.
How do you build credit without getting credit cards?
You can borrow money from other lenders who report to the credit bureaus.
Or you can resolve to live without worrying about having a credit score, which is no measure of financial well-being anyway.
Mr. Wick you’re being dumb. Quit giving poor advice.
There are six items that effect your credit: hard inquiries (applying for credit/loans, usually -1 point/per), total accounts (number of credit cards\loans), age of credit history (time since your very first credit line), Derogatory Marks (Bankruptcy, repossessions, ect.), Credit\Card utilization (credit card use per month), and payment history (never miss a payment!). Businesses report to the credit bureaus and your credit is updated around the 10th of every month. The only way to build credit is to open an account with a business that would report to the credit bureaus.
Close out all my credit card accounts? Nah man. That's how I get my free vacations. If you have discipline and know how to play the credit card game there are hundreds of free money and savings in the form of 0 interest in purchases out there.
You can't buy online things from other countries with a debit card. Dave is so behind
Ever heard of paypal. Didnt think so.
@@Cody_Ramer The place I was trying to buy it from only accepted PayPal if you paid annually.
yes, you can actually...
If you are wealthy , there is zero reason to have a credit card. But nearly everyone in your audience is not wealthy. So for many, having one credit card, paid off in full monthly is a useful tool and teaches you restraint. Plus I get an additional 5% of every Amazon order, I get zero discount with my debit card. But if you have a record of abusing credit cards, do exactly what Dave says-NOW!!!!
Im confused should i open a credit card? If i have a job and and i get a paycheck where does it go then? Im 18 so i need all the help I can get trying to be financially aware 😅
When I was 18, I opened a checking account (looking back, I should have opened a savings account at the same time). I also got a debit card. Now I'm 24 and have only overdrafted once (I do editing work and didn't get paid on time after a rough couple months).
@@KerriB so i should open a credit card? And why should i have a debit card?
@@goldeneye6651 a debit card is something you can only use it you have money in your account so it's easier to know how much you're spending on my opinion
Go through Dave's Financial Peace University, watch his CZcams Videos. If you save 10-15% and invest in S&P 500 ETFs or Mutual funds you'll be set for life IF you do this. I'm 45 and wish I would have saved and invested more but I can't go back to 18. Fortunately you're 18 so you can make the choice. Your 45 year old self will be very well off and will thank you. Your sacrifice today will literally pay you back 10 times.
You shouldn't be spending money you don't have. Only spend money you do have. I costs you money to spend money you don't have. That is how the credit card companies make money. Establish your emergency fund of $1000 then 3-6 months of living expenses. Follow Dave's baby steps.
I'm not getting rid of my metal credit cards no matter what Dave says. We get Priority pass and Global Entry, compare that to his debit cards.
Just don't over swipe!
But Dave! I get airline miles!! 😁
He's so against credit cards. Even when people say they can handle them he just tells them "No you can't" He says you spend more with them and you spend less with cash. Well I spend more when I have cash in hand and actually spend less with credit cards. If I put everything on a cc at the end of the month I now have to pay the bill in full at once. Makes you see how much you are spending a little more.
I agree I am the same way with a CC I spend less because I think of the bill at end of month and that sort of keeps me in check some. Had one for 20 years and never got into CC debt at all...but again we are both responsible so many people aren't and get into debt...those people should destroy them.
Same here. Is debit any different? It's a piece of plastic which allows you to buy as much as you have in your bank account. Credit card is the same deal. Except one I get 1.5% Cashback. Save it up and use it to pay off the mortgage. The card also helps me budget...if all discretionary goes on there and I stick to my monthly budget amount...guess what, I am right on budget. No maintaining daily spending logs. It's just simpler with a credit card.
@@markg999 But yet if you call in and tell him that he will just yell that you're an idiot who thinks you can "beat the system" and that you can't.
Credit score would drop that’s why I’d keep it open
Not everybody is privelage enough and rich enough to close all of their credit cards.
If you're rich and privileged enough to open a credit card, you're rich and privileged enough to close it.
Live within your means, if the money isn't there you don't spend it. I wish congress and the government grasped this concept.
Luis you will never ever have anything until you can spend less then you make and or make more then you spend.
Boo hoo life's full of unfairness, that's the way it is.
@Insightful Isaiah True.
Well I’m sure when your rich why would you need a credit card ?
Why would a rich person NOT have a credit card?
They are convenient (far more convenient than carrying wads of cash), they are safe (more so than cash or debit cards) and you get cash back for making everyday purchases.
Most millionaires use credit cards for those reasons. And since most millionaires got there, in part, by being frugal, there is zero risk to them using credit cards.
Meh, i use my credit card for everything for the cash back. Its not hard to just not spend money you dont have, if i ddidnt have money in my account to pay the card back i just wouldnt use it. My uncle uses his credit card for all his business materials and just gets tons of free airline miles, who doesnt like free stuff?
My debit card wasn’t working so good when a bunch of strange charges showed up beacause someone got the info. My bank instantly shut down my card and I was stranded in another city with no way to buy gas or food. I had zero cash on me and it was Sunday so the banks were closed. This was one week after I cut up all my credit cards. I ordered a replacement in case of emergencies like this. I travel a lot, not getting stranded again!
I like dave but im keeping my cards but only spend what you can pay off every month . Its safer than debt card
Can you still build credit without credit cards? Like phone bills, hydro? I'm confused with what they base a credit score off of.
You can build credit with loans: secured or unsecured loans.
You dont need a credit score it is for borrowing money why borrow money Dave is against Debt.
Chris Baker
Because the majority of people cannot save 200k to buy a house cash.
Nocta Eucta
Manual underwriting.
i2rtw
True... but then you’re ultimately still using credit by having a mortgage.
Yikes.. at this general advice from him.
This is why you need to apply your own situation to his message or you will be very misled....
Stupid advice!!
It’s not a dumb question. Credit card closures causes your score to go down.
Terrible advice
Closing them out will negatively impact
Your credit score though correct?
Larry Thornton yeah it will go down but so what? I haven’t had a credit card in over two years. It was 730, 840 when I paid off all my debt and now it’s 640. I have a very nice five-figure savings, nice checking, 401k and a Roth. A credit score will never care if you need new tires, need to replace your lost/stolen smart phone or whatever.
Best I can remember you can't purchase an airplane ticket, get a hotel room, or rent a car with a debit card and/or cash.
I never had a Credit card, and I was able to buy an airplane ticket and rent a hotel room just fine with my debit card (can't comment on renting a car, since I don't drive).
yes, you can...
First