Dave Ramsey Says Airline Miles Are ‘Virtually Impossible to Use.’ Here’s Why He’s Wrong

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Dave Ramsey isn’t a fan of airline miles or travel rewards credit cards. Find out why you shouldn’t listen to his advice on this subject. 

Many people listen to Dave Ramsey for financial advice. Unfortunately, while he does provide good guidance in some areas, his advice about credit cards and travel rewards is way off the mark.

Ramsey doesn’t think using travel rewards, such as frequent flyer miles, is worth it. In a recent response to a reader, he wrote that airline miles are “virtually impossible to use,” and that he has “never met a single millionaire who pointed to credit cards and airline miles as the reasons for their financial success.” Only “broke, middle-class people” who think they gamed the system, according to Ramsey.

It’s the kind of condescending advice worthy of an “okay, boomer.” And the problem isn’t just how Ramsey phrases it, but that he’s completely wrong. If you travel often, listening to Ramsey about travel rewards is the worst thing you can do.

Airline miles aren’t impossible to use

Despite what Ramsey says, it’s actually easy to use airline miles. You can earn miles when you travel by signing up for an airline’s frequent flyer program. Or, if you want to earn miles on your everyday spending, there are airline credit cards you can use.

When you want to use the miles you’ve earned, you just:

Go to the airline’s website.Check the “Use miles” option on the flight search.Search for flights.Pick the one you want and pay with your miles.

That’s how you do the virtually impossible. It’s exactly the same process as booking a flight on the airline’s website. The only difference is that you select the option to use miles during your flight search.

Millionaires use rewards credit cards, too

Ramsey loves to claim that only broke people care about credit card rewards and travel points. The data doesn’t support that view.

A study by The Motley Fool Ascent on the credit card habits of the wealthy found that millionaires are more likely to use travel cards. Specifically, it found that 49% of millionaires have travel credit cards, compared to just 23% of those with a net worth under $1 million.

If you’re interested in real-life examples, there are millionaires who have been open about using travel cards. Ramit Sethi, star of How to Get Rich on Netflix, is one of them. He has a reported net worth of $25 million and says there are three credit cards he uses, including two travel cards.

Ramsey’s statement that no millionaire ever credits airline miles for their financial success is also a poor argument. Sure, you’re probably not going to find anybody who literally became a millionaire through airline miles. But airline miles can help you save money that you can then use to improve your finances.

Let’s say you use miles to buy airfare that would’ve otherwise cost $500. You’re now able to invest an extra $500 in the stock market this month. After 20 years at an 8% annual return, that $500 is now worth $2,463.20. Those travel savings can add up.

It’s not you against the banks

Ramsey also often argues that you’re not going to beat the banks that issue your credit cards. These are multibillion-dollar companies, they know what they’re doing, and you’re not going to beat them at their own game.

But it’s not a zero-sum game with you against the bank, where one side has to lose. If you always pay your credit card bill in full, you’ll avoid interest charges, which means you can come out ahead from credit card rewards. The bank still makes money, as it gets a small percentage of each transaction in processing fees, which are paid by merchants.

When used correctly, travel credit cards and airline miles are fantastic ways to spend less on travel expenses. I travel all the time, I frequently save thousands of dollars thanks to my points and miles, and I’m not the only one. Don’t let Ramsey’s extreme take make you miss out on a chance to travel for less.

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The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.Lyle Daly has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Netflix. The Motley Fool has a disclosure policy.

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