Dave Ramsey: Here’s Why I Still Don’t Own a Credit Card

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Credit card use has become ubiquitous, 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 to use a debit card or cash, even though he can comfortably afford to rack up a credit card bill and pay it off in full.
On a recent episode of “Cavuto Coast To Coast,” Ramsey explained why he still doesn’t own a credit card.
Debit Cards Do Everything a Credit Card Does — Without This One Major Drawback
Ramsey has long spoken out against credit cards, and he confirmed on the show that he hasn’t changed his stance.
“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 that “there’s no excuse” to use a credit card “because the debit card has the same fraud protections, it has the same everything, except you can’t go into debt with it,” he said.
While some might argue that you lose out on incentives like cash back and airline points, Ramsey noted that these incentives won’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. 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.”