Dave Ramsey Still Doesn’t Own a Credit Card — Here’s Why

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Credit cards, credit scores, interest rates and cashback rewards have become ubiquitous in the personal finance world, but not everyone believes that swiping away is a smart move. Even if you’re using your card responsibly, money expert Dave Ramsey still prefers and advises the use of a debit card or cash.

With an estimated net worth of $200 million, he can afford to rack up a credit card bill and pay it off in full, but that doesn’t mean he thinks it’s a good idea. On an episode of “Cavuto Coast To Coast,” Ramsey explained why he still doesn’t own a credit card.

Debit or Credit: What’s the Big Deal?

Ramsey has long spoken out against credit cards, and he confirmed on the show that he hasn’t changed his stance. Never mind the annual fees or importance of paying your balance in full every month, when it comes to comparing debit and credit cards, the latter has one major drawback.

“I still don’t have them,” he said. “I mean, I’ve got debit cards in my pocket, and I travel all over the world doing all kinds of stuff, and they do everything a credit card will do — except get you into debt. [You] have to have money in your account to use your debit card.”

Ramsey also said “there’s no excuse” to use a credit card because a debit card has the same fraud protections and security benefits, and you won’t go into a massive amount of debt by using it. While some might argue that you lose out on incentives like cash back and airline points, Ramsey noted that these incentives don’t have any significant effect on your wealth.

“[Ramsey Solutions has] done the largest study of millionaires ever done in North America. We studied 10,167 of them,” he said. “The number of them that said they became wealthy with their airline miles was precisely zero.”

Not All Financial Experts Are Anti-Credit Card

While Ramsey isn’t a fan of credit cards, some financial experts believe that when used responsibly, they can help you make the most of your purchases. For example, Grant Cardone believes that using a credit card enables him to keep a record of every purchase, both for budgetary and tax purposes. Additionally, he appreciates and utilizes credit card reward programs to the fullest.

Likewise, Justin Zeidman, vice president at Navy Federal Credit Union, recommends having multiple credit cards.

“Having multiple cards in your wallet and using those cards on the types of purchases that earn you the most rewards can be a great way to maximize the value you get from your credit cards,” he said. “Responsible credit usage is paramount, but if you are in a financial place where you can manage more than one card, it can be very beneficial to have multiple cards in your wallet.”

Final Take To GO

Though many experts argue in favor of taking advantage of credit card offers, Ramsey makes a good counterpoint. High-interest-rate debt can be difficult to climb out of, and if you don’t have a solid repayment plan, you could just be adding gasoline to your financial fires. 

If you don’t want to go up against credit card companies or collection agencies, consider Ramsey’s advice. Start by just using your debit card for a month and see how that goes. 

Caitlyn Moorhead contributed to the reporting of this article. 

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