Ramsey Said “A High Credit Score Does Not Equal Success”, And He’s Sort of Right, But There Are Big Benefits.

Core Viewpoint - Dave Ramsey emphasizes that a high credit score does not equate to financial success, suggesting that individuals can have a credit score above 700 yet still face financial challenges [2]. Group 1: Debt Perspectives - Ramsey opposes all forms of debt, including credit cards, due to high interest rates and the tendency for individuals to overspend [5][6]. - He acknowledges that credit cards can offer rewards and benefits, such as cashback and roadside assistance, which are not available with debit cards [5]. - Paying off credit card balances monthly can help build credit scores and avoid interest charges, which is a crucial habit for financial health [5][10]. Group 2: Good vs. Bad Debt - While Ramsey is against accumulating debt, he recognizes that some debt, like low APR loans for real estate, can be beneficial [6][9]. - The concept of "good debt" is highlighted, where borrowing can lead to opportunities, such as mortgages for property purchases [9]. - Credit cards can serve as effective financial tools if managed properly, allowing individuals to build credit and access financing at lower rates [10]. Group 3: Financing Considerations - Access to financing can be a double-edged sword; unnecessary loans can harm long-term financial stability [11]. - Personal loans may be necessary in emergencies, while mortgages are commonly used for home purchases, indicating a nuanced view of debt [11].