‘My FICO Score Is Zero,’ Says Dave Ramsey. He ‘Can’t Rent An Apartment,’ But Can Buy The Whole Apartment Complex
Dave Ramsey is often unapologetic when it comes to the credit industry. In last year’s talk about his signature “7 Baby Steps,” the personal finance expert made one thing unmistakable: you don’t need a credit card, a car lease, or a high credit score to build wealth.
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To Ramsey, the FICO score is not a badge of financial health, but a reflection of how much someone has interacted with debt. “The FICO score mathematically is an ‘I love debt’ score,” he said. “It is not an indication you’re winning financially.”
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He broke down the math: 35% of the score is based on payment history, 30% on debt level, 15% on length of time in debt, and the rest on type and newness of debt.
“You can get a raise at work tomorrow morning of a million dollars, and it will not change your FICO score one freaking point,” he said. “We worship at the altar of the great FICO. Great FICO, you are the provider of all good things.”
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“My FICO score is zero,” Ramsey said. “And here’s how dumb our culture is. I can go to the local apartment complex… and I can’t rent an apartment there.” But the irony, he added, is that he can “write a check and buy the complex.”
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Ramsey shared findings from what he called the largest study of millionaires ever conducted in North America. “Out of 10,167 of them, the number of them that said they became millionaires because of airline miles was precisely zero,” he said. “Rich people laugh at stupid people that say rich people do this.”
He hammered home that 82% of those millionaires had never taken out a car loan or lease. Of the remaining 18%, most said it was one of the biggest financial mistakes they had made.
“You want to be a millionaire? Do millionaire stuff,” he said. “You want to be skinny? Do skinny people stuff.”
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Credit Cards, Leasing And The ‘Fleecing’ Of America
Ramsey mocked the idea that a credit card is essential. “But Dave, I need a credit card to rent a car or make purchases online,” he said, mimicking critics. Then seriously: “You can do both of these things with a debit card.”
He called out misinformation on social media. “But Dave, debit cards don’t have the same protection as a credit card,” he said sarcastically. “Said who? The guy on TikTok?”
He pointed to Visa’s website, which confirms that their zero liability policy applies to both credit and debit cards.
Ramsey also took aim at car leases, which he calls “fleeces.” According to him, the average lease carries an effective interest rate of 14.2%. “The most expensive way to finance a vehicle,” he said, while calling out luxury brands like Mercedes and BMW for pushing leases on customers.
To Ramsey, it’s simple: debt is a trap. And the goal is to stay out of it entirely.
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