Dave Ramsey Popular But Does he Make Sense?
Dave Ramsey is a popular radio host who was featured on 60 minutes about a year ago or so. He suggests that you have no credit cards to avoid getting into high interest debt. Often callers will brag how they cut up their credit cards. Personally I don’t agree with that concept. Try to rent a car, a hotel room and so many things without a credit card and you have problems. While it is true that many Americans are over their heads with high interest credit, not having any cards will hurt your credit score and profile and will make life tougher. If you want to keep the cards in a sock drawer thats fine with me, but to have no cards? I have earned many gift cards and other perks with the credit cards as well. Business owners can obtain all sorts of things for personal and business use. I have traveled the world and can tell you that I use credit cards only abroad. Should I have a transaction that goes bad, I would rather have the claim with the credit card company rather than trying to get the money that was already drafted out of my checking account. I know many who support debit only cards cannot get regular credit cards, however the no credit card strategy seems to be a poor one. There was an interesting article in USA about the liability risk with debit card useage
June 11, 2007 at 4:12 pm
This argument is always so funny to me. A wise man once said “A man with an experience is never at the mercy of a man with an argument.” My wife and I have no credit cards at all, only debit cards. We’ve travelled to Disney World, NYC, Seaside, countless other places and we’ve never had one single issue using our debit card to rent cars, buy airline tickets, book hotels, anything. Ever. Also, I work for Dave and I can tell you with 100% certainty that our company uses nothing but debit cards and yet we’re able to move 200 people around the country to radio stations and live events with absolute ease. Hotels, car rentals, hotels, no problems. I’ve never actually met someone who had an issue travelling with their debit cards. What kind of issues have you had?
June 11, 2007 at 4:43 pm
I have seen blowouts at car rental desks over the rental car company not wanting to take the debit card. Certain hotels have been known to put large holds on the cards as well. I have ben around the world and I don’t want to take a chance that should a card get lost or stolen, that I can get cleaned out. Wanting to put a large cash hold on the debit card and more. When you have a merchant dispute you are in a much better position if you have a credit card over a debit card. The bank will not protect you in any way to the level of protection you get with credit cards. Needless to say you work with Dave. There is no reason why anyone should not have a credit card. Another point is the hundreds if not thousands of dollars in free gift certs I and others have received through credit cards, not debit cards. These bonus programs and nowhere near as good with any debit cards generally available to the public. I work for nobody but myself so I have no “skin in the game”