Originally Posted by littleaugustbaby
I guess I have to wonder why someone who does not want to get rid of FICO or credit card debt would participate in a thread for people trying to follow DR's plan and sing the praises of using credit, when the whole cornerstone of the program is to eliminate all debt, stop using credit, and stop worrying about a FICO score.
I'm assuming this comment is directed at me. I don't want to get rid of FICO, I'm realistic and know that my FICO score affects non-debt related financial matters, such as insurance rates. I differ with Dave Ramsey on that point.
As for singing the praises of using credit, I do believe there are a few legitimate uses for credit, including a home mortgage. Please correct me if I'm wrong and DR doesn't believe in home mortgages, it's been a couple of years since I've read any of DR's books.
That said, I'm not advocating the regular use of credit cards and don't believe in carrying a balance on a credit card. I'm not encouraging ANYONE to incure credit card debt they are unable to pay. Yes, I do believe it's safer to use a credit card for online transactions, and pay it off before any interest accrues. I'm not arguing in favor of going into consumer debt as a financial plan, I'm talking about using a credit card as an occasional tool.
I will gladly bow out of this thread if I am not welcome. I was piggy-backing on this thread because I think DR does have some good ideas, but I am not an adherent to everything he says. I prefer to take financial advice from a number of different sources, rather than from just one source.
The reason I was asking about how others on this thread felt about FICO scores and the protections offered by credit cards vs. debit cards is because I was honestly interested. These are issues that I don't agree with DR about, and I wanted to know how it played out in other's everyday lives. I wanted to know if other people really were okay with the tradeoff of less credit use = lower FICO score = higher insurance rates.
I've seen a number of people say they don't agree with everything DR has to say- perhaps we need a new generic 'snowballing your debt' tribe.... hhhmmm...