Dave Ramsey, a financial guru, emphasizes that having a high credit score does not necessarily equate to financial success. He argues that while one can possess a FICO score above 700, financial challenges can still persist. Despite this, he acknowledges the importance of building credit, suggesting that credit cards can effectively boost one's credit score over time. However, Ramsey remains skeptical of using any form of debt and advocates for cash or debit card usage to prevent the pitfalls associated with credit card debt, such as high-interest rates and accumulating balances.
A high credit score does not equal success. You can have a credit score well above 700 but still have financial obstacles.
While there's some truth to what he says, you should still aim to build your credit score, and a credit card is one of the best ways to boost your FICO score over time.
Ramsey prefers to use cash or debit cards over credit cards because credit cards can teach people to use money that they don't have.
Credit cards have high interest rates and can lead to high balances if not managed properly, which can hinder financial success.
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