5 Reasons Dave Ramsey’s Hard Stance Against Credit Cards May Not Apply to You

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Nobody could accuse Dave Ramsey of not having strong opinions. The personal finance guru is known for his no-nonsense advice across a broad range of topics in finance. One of his most deeply held — and perhaps controversial — opinions is that credit cards are bad news for consumers. 

Ramsey famously refuses to use a credit card, preferring instead to rely on cash or a debit card. He argues that a debit card can do everything that a credit card can do, with one notable exception: It can’t get you further into debt. He’s even gone as far as to say that perks like airline points and cash back don’t ultimately help you grow your wealth — making them, in his view, effectively worthless. 

However, no expert is perfect, and not all advice is one-size-fits-all. While Ramsey isn’t wrong to caution against thoughtless credit card spending, there are scenarios where using a credit card can absolutely be the right financial move. Here are five reasons Ramsey’s hard stance may not apply to you.

1. You Pay Your Balance in Full 

In a TikTok clip of Ramsey responding to a caller who asked why he advises against credit cards, he shared his belief that it’s just too easy to overspend with one. “It’s very simple. Personal finance is 80% behavior; it’s only 20% head knowledge,” Ramsey said. “Several different studies have confirmed that when you pay for things with plastic, you spend more than when you pay with cash.” 

But what if you don’t overspend? What if your financial habits include budgeting effectively to ensure you only use your credit card for purchases you’re capable of covering in cash, and you pay your statement in full every month? If you never carry a balance, using your credit card is just one more way you’re practicing financial discipline. Also, by consistently paying your balance in full, you avoid interest charges altogether while still benefiting from the card’s perks.

2. You Stick to Your Budget

Ramsey illustrated the psychology of spending with a cash to plastic comparison. He offered an image of five $100 bills laid out on a table next to one piece of plastic. He said that one of these images is designed to “activate the emotional sensors in your brain, and the other one is not.” When you send your Benjamin Franklin away to pay for groceries or to go shopping, as Ramsey puts it, “he doesn’t come back, [and] your brain says ‘ouch.'” 

However, budget-conscious people treat every transaction with the same gravity. In their minds, every purchase, whether made with plastic or Mr. Franklin sauntering to the checkout, represents real dollars going out and never coming back. If you’re someone who has developed a budget that expressly avoids overspending — or better yet, you’ve automated your payments and expense tracking — you can use a credit card without giving your brain a reason to say “ouch.”

3. You Live Below Your Means 

To further illustrate his point, Ramsey cited a study in which researchers found that people who used cash to pay for goods activated the pain sensors in their brains, while people who paid in plastic felt no pain. While this could be a big concern to big spenders, if you’re someone who lives below your means, you’re not primed to feel the pain. When your expenses are consistently lower than your income, your risk of falling into credit card debt diminishes significantly.

4. You Take Advantage of the Rewards and Perks — Not Lifestyle Upgrades 

Though Ramsey argued that using a credit card encourages consumers to “impulse your butt off,” not everyone who whips out their plastic is looking to join the lifestyles of the rich and famous. Many savvy spenders use credit cards strategically — they’re leveraging everyday spending to accumulate points to put toward an annual vacation or taking advantage of cash-back rewards and other perks. These perks can align with frugal habits, making credit cards a tool for saving rather than mere impulse-buying.

5. You’re Building or Maintaining a Strong Credit Score 

Ramsey frequently states that you don’t need a credit score. While it’s technically possible to live without one, many landlords, mortgage lenders, and even employers view a credit score as essential. A strong credit score opens doors to everything from homeownership to lower-interest car loans, and using a credit card responsibly — by paying on time and in full every month — is one of the most effective ways to build and maintain a strong credit score. 

Final Thoughts

Dave Ramsey’s advice has helped millions achieve financial stability, but even he acknowledges that personal finance is deeply individual. Credit cards may not be the right choice for everyone, but they can be a powerful tool when used responsibly. 

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