Why Dave Ramsey Thinks ‘Good Credit’ Is an Oxymoron

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Is Dave Ramsey right about this one?

Key points

  • Dave Ramsey said good credit is an oxymoron.
  • He thinks it’s bad to have good credit because your credit score is a measure of your debt.
  • Unfortunately, following Ramsey’s advice on this issue may not be wise.

Most people aspire to have a good credit score. But finance expert Dave Ramsey doesn’t think that’s a smart idea. In fact, Dave Ramsey has described good credit as an “oxymoron,” which means he thinks the term is self-contradicting because there is no such thing as “good credit.”

So, why is Ramsey at odds with most other financial experts and what underpins his belief that good credit is actually a bad thing? 

Ramsey doesn’t believe good credit is a good thing

Ramsey does not believe good credit is actually a good thing for one key reason. “You only get a good score by borrowing money — a lot,” he explained. “You take on a ton of debt and risk, just to get the ‘privilege’ of going into even more debt. It’s a rigged system.”

Ramsey suggests you can — and should — opt out of this “rigged system” simply by declining to borrow money. 

If you never take out loans or take on credit card debt, you will not earn a good credit score. That’s because you do need to have debt in order to show you can use it responsibly and earn a good score, exactly as Ramsey says. You may end up with no credit…

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