Maximize 2015 With the Perfect Credit Card - A Silver Review - Living on Fifty (2024)

FAQs

Why does Dave Ramsey oppose the use of credit cards? ›

Increased Spending

If you can't pay off the card every month, you may start carrying a balance and find yourself getting stuck in credit card debt. In addition to carrying a balance, you'll also rack up interest and ultimately wind up paying back more money than you spent.

The best credit card overall is the Wells Fargo Active Cash® Card because it gives 2% cash rewards on purchases and has a $0 annual fee. For comparison purposes, the average cash rewards card in 2024 gives about 1% back. Cardholders can also earn an initial bonus of $200 cash rewards after spending $500...

If your goal is to get or maintain a good credit score, two to three credit card accounts, in addition to other types of credit, are generally recommended. This combination may help you improve your credit mix.

Ramsey's credit score doesn't matter -- but yours does

Since Ramsey doesn't borrow, he won't be able to do that. And, for the finance guru, it's just fine not to have a credit score. Ramsey has a substantial net worth (much larger than most people have), so buying houses or cars with cash isn't a hardship for him.

However, multiple accounts may be difficult to track, resulting in missed payments that lower your credit score. You must decide what you can manage and what will make you appear most desirable. Having too many cards with a zero balance will not improve your credit score. In fact, it can actually hurt it.

There is no right number of credit cards — it depends on how many you can manage. Having multiple credit cards helps reduce your utilization rate and provides lenders with more information to better gauge your creditworthiness.

Detailed Review

The Capital One Quicksilver Cash Rewards Credit Card is a good option if you value the simplicity of earning a flat rate on all your purchases. You'll get 1.5% cash back on nearly every purchase, without a bunch of bonus categories to remember or spending limits to keep track of.

The American Express Centurion Card, colloquially known as the Black Card, is a charge card issued by American Express. It is reserved for the company's wealthiest clients who meet certain net worth, credit quality, and spending requirements on its gateway card, the Platinum Card.

Hardest Credit Card to Get Overall

A rating of 5 is the best a card can receive. Why it's one of the hardest credit cards to get: The hardest credit card to get is the American Express Centurion Card. Known simply as the “Black Card,” you need an invitation to get Amex Centurion.

What is Dave Ramsey's position on credit cards? ›

Dave Ramsey doesn't deal with credit cards. His major advice with credit cards is to cut them up. Cut them in half, shred them, dispose of them and never ever use them.

Warren Buffett Hates Credit Cards: Here's How To Realistically Ditch Yours. Credit cards are, by nature, both an asset and a liability.

Rely on debit, rather than credit

Some people end up spinning their wheels because of this. The money you spend cuts into any progress you make with your payments. Orman has some good advice here. She recommends only using your credit card for one or two recurring charges per month and setting up automatic payments.

High interest rates

If you carry a balance on your credit card, you'll pay interest on that remaining money. And the interest will compound until the balance is paid off, which can get expensive quickly. “Paying less than the balance means high interest charges,” Enright explains.