Why Dave Ramsey Says ‘You Can’t Count on Credit Cards’

Core Insights - The discussion revolves around the implications of keeping or closing credit card accounts, particularly in relation to credit scores and financial health [3][4][5]. Group 1: Credit Card Management - Maintaining an open credit card, even with a zero balance, can negatively impact credit scores due to its effect on credit mix and utilization ratio [3][4]. - To achieve an indeterminable credit score, it is essential to have no open credit accounts, as any open account will continue to report to credit bureaus [3][5]. - The fear of not having credit cards as a financial cushion is common among consumers, but reliance on credit cards is discouraged [6][7]. Group 2: Financial Advice - Financial experts emphasize that individuals should not depend on credit cards for financial stability; instead, they should rely on personal discipline and hard work [7]. - The credit card algorithm penalizes individuals who have no interaction with credit, leading to a low or indeterminable credit score [5].