Dave Ramsey argues that consumers can live without a credit score, but avoiding a credit score can lead to struggles when borrowing money for significant expenses or emergencies. While some may manage without credit cards, having a credit score enhances financial opportunities, especially for renting homes or buying properties. Using credit cards responsibly can yield benefits such as cashback rewards and credit building, making them a useful financial tool when managed well. In an emergency, credit cards provide flexibility that cash alone may not offer.
On Ramsey Solutions, it says that "living without credit cards is a great idea." It also says, "You don't need a credit score to get through life."
If you ever want to buy a house, it's going to be difficult to do so without a credit score, since most people don't have hundreds of thousands of dollars sitting around to purchase a home in cash.
Sometimes, life happens. Your roof could spring a massive leak. Your car could refuse to start. You never know when you might need to charge an unplanned expense that can't wait.
When used appropriately, credit cards can put extra money in your pocket and help you build credit.
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