"If You Use Your Credit Cards, You Do Not Want to be Rich. - Mark Cuban 

No you missed the point paying into your credit score essentially since if you spend 1000 you are going to pay let’s say 1200 that 200 that you put into “building credit” can be used to build more wealth not throw money into a magic number that will only help you finance a house why finance a house when you can pay cash you see

​@seeks6272 not if you pay if off every month. I've had my cards for over 7 years now. I've paid like $20 in interest. And that was an accident. Set up auto pay for the statement balance and you'll never pay interest.

@@seeks6272truly showing how little you know lol. You don’t pay interest if you pay your balance every month😂😂 stop trying to justify your horrible credit score to yourself and fix it!

I maxed out all my credit cards and will never pay back. That got me rich

​@seeks6272 dont carry a balance i get 2% on all the stuff i have to buy ie. Gas and food and buy dividend stock with the cashback ive never paid a cent in interest. Just clear the card its free money

It’s all about subconscious spending 🤷🏼‍♂️ not fixed

@@TheDaumWorld you can subconsciously spend on a debit card too. So fixed

Done

THANK YOU!!!! Using only cc and not carrying balance = free money in rewards

Until life hits then they got you.

Exactly, bro preaching to a broken crowd

"This is good advice for everyone except me. I'm the exception that will beat the system."

@@amyzonkers7568 Not at all. There are people that blow all their money as soon as they get paid and people that know how to live below their means. Mark's advice is more for that first group of people.

@@amyzonkers7568that’s not what that means at all. I do the same. The point is the average person with a CC has no self control.

@@disgustedluigi The average person thinks they're an above average exception. This includes you and the rest of the I-love-credit NPCs who think they're going to get wealthy with rewards points.

For real I’m a college student with a 741 score, I use my card for everything and pay it off IMMEDIATELY no questions. Just got a good cash back match too

If you're responsible you dont need credit cards.

@@amyzonkers7568 idk about that.. I’m sure your bank doesn’t offer the same protections as a credit card. Why risk your money, when you can use someone else’s?

@@amyzonkers7568 many people dont use the card for the sake of holding debt, but rather for the cash back rewards and credit score

​@@amyzonkers7568 there's so many benefits to using credit cards. I made over $1,000 in cash back from using credit cards last year alone. It boosts your credit score which will help you get loans for mortgages / cars.

Exactly 💯

I load my card to max. Pay it off immediately. Get the rewards.

That’s too hard for people

Sometimes life happens and you can't make the payment before interest kicks in.

@@JCPerez-jz5cvthen just don’t buy things that you don’t have money for

Same here. Use it as a debit card, not overspend. You get 30 day 0 interest which is super important in an economy like Argentina with 200+% inflation where I'm from.

well you're not the group dave helps.

As long as you actively watch your checking account and truly don’t overspend

I do the same here in the UK. Buy things that I was going to buy anyway, like groceries and diesel, then pay it straight off. I don't get charged any interest, but I get the Avios points to use on flights. Dave has a bee in his bonnet about credit cards, because they pursued him when he owed them money. He gives good advice for broke people, but not for those who can control their spending.

You’re one of the few.

Most Amex cards are charge cards, not credit cards. You earn rewards but cannot carry a balance.

@@kovu159 Not true anymore. Nice disinformation post though.

well he mentioned interest or wtv so he probably pays stuff off on time

@@kovu159 Amex from 20 years ago. Not today. I'm sitting on an Amex Blue Everyday card and you do not have to pay it off each month.

@@floridaman964 well Tell us how it works then

I knew a guy that traveled regularly for work. You would charge all travel expenses to his credit card and how the company reimbursing getting him status and miles. It's genius

Yea I use a credit card for everyday purchases and get two flights to England a year for free

Yes, absolutely - it's all about financial responsibility. There's a saying g "don't throw the baby out with the bath water". In this case, credit cards are fine in the hands of financially responsible people. I don't like to carry around cash in this day and age, credit cards are safer - as long as you pay them off every month, it's fine.

Yep

I pay everything on credit card. Ever gum. And pay it off every paycheck. And get freeee moneyyy!!!! It's the best thing ever lol now I only get like $50 max or so in rewards because i don't spend much anyways but ai use those $50 to pay off my balance lol

Are you rich? Just wondering lol 😂

​@@josuesantiago4521 are you?

@@josuesantiago4521 ?

This should be top comment but unfortunately people don’t find out they’re that person until it’s too late

​@@josuesantiago4521 Are you rich? Just wondering lol😂

Dunning-Krueger effect in action.

Same! The only downside is we may overspend by, lets just say, 10%, since it doesnt "hurt" as much as cash leaving ur hand.

@@ryebread447speak for yourself. Us financially responsible people don’t overspend

I have a card specifically for food getting me 3% every time I go to the grocery store and 4% at fast food and restaurants, I've got $450 back this year so far

It's just another hassle in life. Keep on running gerbil. 🏃‍♀️

Right. Paying cc interest defeats the purpose of getting rewards points.

I float at like 10% utilization but the payments are automatically taken out. It just depends on when certain bills hit on how much utilization it shows

Same. And I also like to take advantage of cash back. I have funded trips with it, but I mostly cash and invest it. It's basically free money. I have never paid any interest or any kind of fee.

Likewise, I pay the balance in full every month (minus the cash-back applied) so the card pays me. Furthermore, if you follow this practice most cards will allow you to request a credit limit increase every six months, which increases your overall borrowing power, which can lead to a better credit score.

I use a credit card for points and convenience - monthly expenses paid with a single check and mailed out week received. If I can't afford to remit when due, it's a "want" not a "need". No debt and live within my means. Raised by CT Yankees 🇺🇲

@xMontorix 🎉 Congrats!! That’s a HUGE (and very difficult) accomplishment. Way to go! 🎉

Points. That's where we're headed - no cash, just Points . They want the data from your spending.

We've paid for 2 vacations to Jamaica with points from our card. Haven't ever paid interest on it.

@@Tommy.461But you do pay for the price adjustment each merchant makes to cover processing fees.

@@Miclorenonly 5.60 on SW rapid rewards card for domestic flights. So I could pay 300 for round trip per person or pay 5.60 per person. My card points win! I pay off any balance by end of month no debt at all❤

@@annemariesmith5459 You think debit cards dont also sell data?

Well appreciate your honesty🙏🏾 but honestly I have a question, I’m 18 and have yet to start building my credit bc I want to learn first and make less mistakes as possible, after watching this video I am now unsure whether I should start building at all😅 what’s the actual pros to building credit besides financing things? Pls and thank you for your time.

​@iriana_official162 In order to build credit, you need to show that you can borrow money and pay it back responsibly. You can do this by getting personal loans or auto loans, but those are costly and something you should only use when you actually need those things. On top of that, the benefit of those loans to your credit usually go away once you finish paying those loans off which will cause your score to drop along with that line of credit. Which is why credit cards are a much simpler way to build and maintain a good credit score. Unlike loans, credit cards have a permanent line of credit that stays open as long as you use the card every once in a while. Just make sure to limit your use of them to stuff that you have to buy anyway like bills, transportation, and groceries. If you feel you are financially responsible enough for it, using it to buy all your other expenses is fine too. Also of course, make sure you fully pay your credit card balance off every single month.

I use a credit card because I at the very least get 1% back in rewards and get 5% on my groceries which nowadays definitely helps. If you don’t use a credit card and pay in cash you’re only hurting yourself while helping out the company you are shopping at. Only time I pay cash is when buying from someone in person or from a mechanic or someone who gives a discount for paying in cash.

Look at my comment, it saves you money to use a credit card in most situations. Just don’t be dumb enough to not pay on time. Setup autopay and only spend what you have. I treat my card like I would cash. I don’t spend money I don’t have.

@@iriana_official162credit is a key to a good middle class life. Billionaires and multimillionaires aren’t even looking at there credit. It’s easy for them to say when they can go buy a 2024 lambo wit straight cash. But the average person needs good credit if he wants something luxurious or something he proably couldn’t buy in cash. Most middle class homes with those nice cars are all loans. America runs on the middle class and credit. That’s how the rich get rich

Yeah this clip and message is a little misleading. It’s not as catchy to say, “Don’t hold debts at extremely high interest rates for example with credit cards”.

You dont get a credit card to not be in debt. That's what a credit card is. The bank buys it for you and you owe them money.

@@amyzonkers7568 people who effectively use credit cards are technically in debt, however it’s good debt, you get rewards and a great credit score.

I like that

Wise woman 😊

I agree but time is wealth

You're

Rich but doesn't know English

Good for you?

Same I pay off the balance bi monthly when I get paid so I never get interest charged. If you auto pay on the due date, yes your going to pay money. I budget and use my card within the budget.

There is a difference between a personal account and a business account. Using an AMEX for business expenses is not the same as having personal debt.

But you’re an unicorn. Everyone is not spending that much.

Just Ignore two insanely rich people. One of them happens to be a billionaire. Who cares what he thinks because someone making 40k says to use CCs.

True, but the problem is millions of Americans are in credit card debt became they think it's a good idea to have

Exactly. Having available credit isn't the same as having the money. You know how much money you have coming in, so that's the money you're working with. I also like having the extra available credit in case something expensive comes up and a lot of credit cards offer extra protections, so you can save money with the cash back with extra coverages

Same with mortgage debt. I know multi-millionaires who could easily pay off their houses but are smart and keep their 4% fixed loan that's cheap and tax deductible. Rather than pay off the house, they have that money earning 10% to 15% in higher return investments

I have exactly 1 credit card with a low limit, that I use exclusively for online purchasing and sketchy gas stations and pay off every month. I live in small rural and can't get 40% of what I need locally. This way if my identity gets stolen (thanks, Amazon), I never risk being out very much and my bank insures fraudulent usage.

Dave teaches people to become fiscally responsible. Some people then can move onto learning new financial concepts that teach you about good debt, and others just keep on down the road with Dave’s advice. He’s totally giving great advice for the person that’s financially illiterate, which is roughly 80% of Americans.

the only reason for a credit card at that point is just credit score. although many credit cards offer cash back on every purchase, usually shown as reward points. those can be used to help pay off the balance you have on the card with the cash back youve earned through the card or redeemed into some checkings acc. basically free money if you know youre good on paying the balance. autopay would make it more convenient

To be fair building credit isn’t bad just don’t be dumb

Lol 21! You don't know how life changes on a dime! Keep that spirit up..... you'll need it soon. Life come at you fast! Lmao this was hilarious! 21!

Exactly!

The people that say this are the same type of people that don’t pay them off on time….

​@@Kamel-Elkadri i say this and am paying it off for 3 years till date. I was stupid enough to underestimate my financial discipline. Have 15 active credit cards at present. Balance carried? Zero. Have fully funded emergency fund with me.

You are getting, what, max 3% cash back? You know how much that is? On a $1000 spend, that's only $30. You do better than that with literally any type of investment

@@andrewbabbo123 it's with this 3-5% saving on your budgeted spends or utilities which will boost your income. Especially if you invest that in mutual funds. It may seem small, but it still is fine than having none.

Well done 🙌

And then you'll scream and sit down and everything will be the same. Depressing, boring and mundane. Enjoy. 😂

⁠@@PeterNorthCumshotLegendwomp womp. Looks like we have a downer among us. 😢 Wish all the best to ya buddy. Hope you find peace in ur life instead of being negative.

Congrats!!!

Congrats!

Very few do, that’s the problem

@@anotherdoseytI’m totally fine with reaping the benefits of others paying interest

Yeah i dont spend money i dont have, simple

@abramsrob so you don’t use a credit card. Good

​@@abramsrob exactly. Leverage is one thing. Debt is just bad.

Most people are not disciplined though so are you saying credit cards are made just for rich people??

@@justlkbjhow did you get that from the comment?

@@raymondhansen4482 because I know the history of credit and finance and I know most people are not disciplined which is why I said for rich people because of why they were originally made and because usually poor people have terrible discipline but giving them the benefit of the doubt you shouldn't have to be that disciplined like a dam robot just for credit cards where ax rich people are disciplined like a dam robot you get me

@@justlkbj No. I'm saying that credit cards are fine to use if the balance is paid in full each month, and people don't spend beyond their means. Plenty of low-income people have discipline.

@@josiahb.2117 my brother in Christ if they had the discipline your talking about they would be wayyy well off and truth fully they are not. Credit should be removed the avg person is better off without credit you don't earn enough anyway to get the full benefits and perks and lifestyle of a credit card not enough cash flow

Yes exactly, Ramsey has SOME good advice but on this he is totally wrong unless you have no self control and then of course you have other deeper issues.

@@MP-ef6mc lol that’s exactly the kind of people who seek help from ramsey maybe

@ConRon The people that say “just pay them off every month” are the same type of people that don’t pay them off on time….

The majority of the people he’s talking to aren’t in a spot to be using credit cards like that and might never be since they usually put themselves in a hole and kept digging. So it’s probably irresponsible of him to suggest to use a credit card to them in his position.

I agree with you ConRon. Ramsey does not.

And what did you do with that 5k, invest it?

@@OTBkid If that were your concern, he'd have mentioned it.

5000 over 20 years isn't a great rate of return

@@michaelsorensen7567 Better than 0

Robert has a video with jaspreet talkin about Dave Ramsey on debt

Cuban and Ramsey’s advice here is more geared towards everyday normal people who just want to maybe make a million or two before they retire. Good advice It’s a good goal to strive for as it’s a little more realistic and usually has little risk involved. Rich dad poor dad gives advice for people who want to become multi millionaires by owning assets in the form of real estate and businesses. Through debt and assets you can avoid lots of taxes given the current tax codes. This method is a little more difficult and has greater risk involved. But that’s life isn’t it - high risk high reward. Either way - they both give good, sound advice. You just have to first find out what it is YOU want out of life, then structure your financial plan accordingly.

@@cemora thank you sir. I hope you are rich and happy

personal debt vs business debt

Robert would destroy them. Ramsey & Cuban likely wouldn’t even consider the debate

Waste of your paycheck. Think what you could have used that money for.

@@Musicienne-DAB1995 Are you joking? Paying your water bill is a waste of money? You bathing in a dirty river to save 30$?

@@blunderhappy8962 Pay your water bill with your debit card.

​@@Musicienne-DAB1995 You're paying the same money either way. The only difference is not getting the cash back with the debit card. 🤦

​@@Musicienne-DAB1995what an incredibly stupid thing to say 😂

We also live quite comfortably, spending less than we could. There's a lot to say about the freedom that good money management brings.

You have to live life it’s not just about saving until you DIE! Then what was the point if you don’t get a chance to spend it🤔

Some people can't afford food, I agree... they don't need it 👍

So you paid for your house in full? This is extremely misleading

@@ptfambam There's a difference in borrowing with collateral and getting in debt with nothing to back it up. The purpose is different, the interest rates are way lower, and it is a controlled method of managing money. So, we careful folks will borrow for a car or a house, and really nothing else. If we have credit cards, we pay them off every month. It keeps us out of the misery of debt. Being in debt is terrible for a person's nervous system, and it is a great killer of marriages.

Which only goes to show how the system is rigged to encourage debt.

you just didnt try and look hard enough

I’ve witnessed a car rental company flat out refuse to take cash or debit card. Sitting in an airport you don’t have time or means to shop a deal that will take an alternative form of payment.

@@harthart7529 then sue them they are not allowed to not accept cash. or just walk away there the ones that want your dollar so go give your money to another business that will accept cash. its there loss there the business trying to make money

You have to have your car delivered to that fort before you arrive 😉

Rob Kiyosaki moment

lol

😂😂😂😂😂

There’s good debt and bad debt.

Yea that was Robert. Debt is good if you take on debt to buy an asset.

I have 2 credit cards that automatically pay the balance each month while giving me 1-5% cash back. I pay everything I can with them. I have gotten thousands in cash back and never paid a dime in interest.

@@BigWill3855 You paid by spending more if you didnt have the card. You know this by the fact that you view rewards points as financial progress.

Which mutual fund ? I’m interested in giving my cash back a new home

Only heard people who were upper middle class or wealth say this. Yeah du you have the ability for that to be a no brainer.

of course! They rack up a lot too!

I love getting cash back or points

Exactly!

Totally agree! I get several hundred dollars a year back by using my credit card to pay things I was going to pay anyway. Just pay balance off at the end of the month.

"I disagree with these millionaires on how to build wealth." -Person who is not a millionaire and has no wealth.

😂

I've had my credit card skimmed multiple times, if that was a debit card I'd be out thousands.

Yeah and you can have a virtual card in minutes and replacement card in 2 days.

@@chrisknoblockthat’s a common myth but you’re still not on the hook for debit card fraud. The reason the myth came about is it is however much more of a pain in the ass to get back to status quo. With a credit card you just notify and the difference is deducted from your bill that month so you never notice. With a debit card you have no access to that money for the duration of the process and only once everything is approved is the money refunded and accessible.

Why wait till the end of the month?

"I enjoy using my credit card and I love my rewards!" -Not rich people

Well, that's the thing isn't it: if you're rich, cash back and reward points don't matter. So the way to get rich is to ignore cash back and rewards.

Very true💯

@@Musicienne-DAB1995 How so?

​@@Musicienne-DAB1995 If you mean don't make a purchase because of the rewards, I would agree. But if you're going to buy something anyway, there's no reason not to get the extra rewards.

@@Musicienne-DAB1995 You have to get rich before you are rich, and that means every dollar matters, because down the line they will multiply tenfold when invested. Outright ignoring free money simply for being responsible is not how you GET rich, it's how you shoot yourself in the foot for no reason at all. Only once you ARE rich do the perks stop having the same effect, because at that point your money has grown to the point it is far outpacing the little rewards.

That’s what’s called good debt. Ramseys all about getting people out of debt, as that’s who he sells to. You’re never going to hear Dave teaching about what good debt is, because that’s not what he is selling, and if he did that, there are way too many people that are black and white and would harass Dave for being a hypocrite. Dave gets what you are saying, but that’s not his product, so he’s never going to promote that.

"I gambled at the casino and won. Dont tell me gambling isn't good financial advice!"

Exactly

They borrow ONCE they’re rich not when they’re poor lol

​@@Mrbusy498they borrow alot, especially G.C

Borrow, never think about paying back, leave an inheritance to your kids

Wealthy people do not borrow to get their wealth. That's the way they LOSE their wealth. You get wealth through your income and smart investments.

Please do not use a debit card. If someone steals your debit card, they can literally deplete your bank account and you have no ability to get it back. Credit cards have built in theft protection.

For real. It is not a magical card that gives you an infinite money glitch. Also that is a good way to put it: "use your credit card as a debit card"

One question though I am new to credit cards and don't you have to get a credit card that has interest or fees on it when you first get one because you have a very small chance of getting accepted for a "good" credit card (no extra money if you pay on time and in full) since you have zero credit? Is this true?

@@karltiedemann7222 I have a discover card as my first credit card and I didn’t get any interest or fees for the first 18 months which expires now in August. Interest is only added onto your total when you don’t finish paying off your debt and fees are only added on if you miss a payment. If you’re interested in getting a discover which I think was good starter because I’m at a 759 right now, I can help you get the card and if u sign up using my share thing u and I both get $100 bonus on our cards.

@@karltiedemann7222 No. Plenty of starter CCs or even Chase Freedom they give to broke college students. So just any CC that will give you one, but then treat it like your own virtual ATM Machine on a card. As in use it like you're withdrawing cash and you're simply creating an IOU to finally pay the accumulated IOUs when the Statement Balance comes in. Never underpay a statement balance where interest starts to get tacked on. Within a couple of months new CC opportunities will start to open to you. But only to make your total credit limit be higher and in turn the utilization amount can be larger and you can spend more. To be clear never spending more than you can pay per month, but you can carry a larger balance within the month without getting dinged for going over Utilization percentage.

Why are you waiting to use them?

@@Musicienne-DAB1995 Coivd -> Having Twins

Yea sounds like you're doing much better than mark cuban

@@JT-hs3pe lol 😂

Cap

But if you are in debt you can't afford, you did blow all your money.

YOU ALREADY KNOW.

If you are not in debt you are not in business

You actually spend more on those CC’s.

@@andrewg3666 please explain how

Exactly. We’ve done this for over thirty years; autopay balance each month for zero interest. Haven’t paid a penny in interest during that time. Technically, I was charged interest twice due to computer glitches on their part which was promptly refunded after some phone calls. I’ve got two back up cards, that are active, that I keep in case the others are compromised. Has happened on trips (cards being compromised). Aside from not having to carry a bunch of cash, you get better conversion rates when traveling overseas (which we are now doing at least three times a year) and charging using the local currency. Plus, you don’t have to guess at how much to convert into the local currency. Have an emergency cash outflow? Use the card, then take the time to select the proper account to pull the funds from to cover the expected cc bill. Oh, and the points earned go towards paying off the cc bill, automatically.

@@andrewg3666 - only if you have little/no self control.

You don’t need a fico score if you don’t use debt.

A lot of people confuse "income" with "how many payments I can afford" I had to make up for lost time to build credit, so I took on some loans and refinanced them when my credit got up there, so now I"ve got low interest rates and history building up. Going forward, my credit cards should show enough to keep my score high.

I stare at credit reports for a living. As long as u keep your total usage under 30%, the cards will not hurt your score. Some people think that just paying bills on time improves credit. But credit cards don’t work that way. A card with over 50% usage, even if paid perfectly, will bring ur score down. Best of luck to u building that score.

My bank card works online. U might need a new bank

You can easily buy things with cash online and there is such a thing as a debit card. Stop making dumb excuses.

Yeah use credit cards with a good purpose

If you actually were as successful making money as you claim you wouldn't be needing credit cards. You use credit cards to spend money you don't have.

Capital vs cash flow. Cash flow takes time before it turns into capital. Credit speeds up the process. Create debt to purchase assets which cash flow enough to pay off the debt. If you’re good at it your new asset will increase free cash flow while it’s also paying the debt. As a bonus your free cash flow increases on the back end when the debt is paid off.

@@clarkewegener9197 The vast majority of people who use credit to flip real estate fail. Dave Ramsey has many videos on this. The risk is too great. You might as well be advocating for getting money from a casino.

It’s good if you can get it at small interest

It’s all part of their plan

Debt is good if you have a plan to leverage the money to get more. Such as private equity companies like black stone who take over other business assets. I'll give a nice example. There was a casino in sydney that was under huge amount of debt they couldn't pay the bank. Blackstone came in like an angle with 60% debt leveraged and bought the casino. They litterally took all the debt and paid it off like it was nothing and got a business. This is just one example of debt used as an instrument. If you are smart enough to make money work for you then you will be better taking on debt. Hence why you need a solid plan because if not this same thing can backfire and cost you a lot of money. So debt is good if you can use it as a leveraging instrument but it is a double edged sword. (Sorry for this long explanation just needed to show you how debt can beneficial but also harmful).

@@bharatsadhnani4370no need to apologize lol this was the perfect clarification I was looking for. I wish there was a different way that average people (so like myself) could understand different types of debt. Because without that it’s just the same word used when describing it even though it’s practical use is very different.

Some disagree about buying something to make payments to build credit. The key is to have the money already. My daughter saved money for a car, then made payments. Build credit, but have the money. No failure.

Borrow money to invest in appreciating assets is different than swiping a card to buy a latest iPhone or store brand clothing.

@ISayThingsToPissYouOffToShowHowLameYouAre.🤣 not at all the same thing

That's what I was thinking

Cc is bad debt. Borrowing money to invest in real estate is good debt

​@@justhighlights.2737 Only if the real estate is bringing you income