Episode Summary: "These People Are Too Stupid To Work For"

Podcast: The Ramsey Show Highlights
Date: August 20, 2025
Host(s): Dave Ramsey, Sam (co-host), Ren (caller)
Episode Length: ~9 minutes
Theme:
This episode confronts the misconception that a high credit score equals financial responsibility. Dave Ramsey vehemently challenges the reliance on FICO scores as the sole benchmark for financial health—especially in employment decisions—while supporting a caller navigating workplace credit requirements after going debt-free.

Main Discussion & Key Insights

1. Ren’s Dilemma: Employer Dependencies on Credit Score

• Ren’s Situation:

  • Works IT/security for financial institutions; employment contracts reference credit score.
  • Recently paid off significant debt, including an auto loan—leading to a drop in credit score (below 700).
  • Concerned employers will see lower score every six months and question financial responsibility.

  "One of my oldest accounts... was actually an auto loan. And I paid it off here recently... I go and check my credit score and it dropped it below 700." (Ren, 00:43)

• Employer’s Perspective:

  • If a worker can't 'manage their finances' (as shown by score), they lose system access.

2. Dave’s Argument: FICO Score as a Flawed Metric

• Myth-Busting the FICO Score:

  • Dave explains that a FICO score reflects your relationship with debt—not true financial responsibility.

  "100% of the elements in the algorithm that create a FICO score are about your relationship with debt... It is not a measure of net worth." (Dave Ramsey, 06:42)

  • Paying off debt can actually lower your FICO, because it reduces active credit accounts.

• Critique of Corporate Reliance on Credit Scores:

  • Dave suggests any employer equating a low/no FICO score with irresponsibility is "too stupid to work for."

  "If you become debt free and your credit score drops below 700 and stays there and they look at you and say you're debt free so you can't manage money. Well, these are people too stupid to work for. Seriously." (Dave Ramsey, 01:50)

  • He likens this mindset to "corporate stupidity" and urges listeners not to buy in.

3. Advice to Ren: Stand Your Ground

• Confront the Policy Creators:

  • Dave recommends open discussion with employers ("get on the phone with the goober signing the contract") and assert financial responsibility through debt-free status:

  "If you can't look at me and say debt free is financially responsible, then you're too dumb to hire me, honestly." (Dave Ramsey, 02:49)

  • Sam adds that the solution may be as simple as calmly explaining the logic to HR/employers:

  "You might just explain it to them the same way... as a smart human being. Don't die the same way that they're going to figure it out." (Sam, 04:24)

• Don't Live in Fear:

  • Dave cautions listeners against making financial decisions solely to benefit their credit score, and to reject the myth that you must maintain active debt for job security.

  "I'm not going to pay interest to a bank and pay payments that I don't to be paying to create an artificial wellness score..." (Dave Ramsey, 03:35)

4. Deconstruction: What FICO Really Means

• FICO’s True Nature:
  • Developed by Fair Isaac, and entirely debt-based metrics.
  • Having wealth and being debt-free will not increase your FICO; in fact, it may drop it.

  "It's a way banks judge if you want to play kissy face with them or not... 800 sucker score. That's what they see." (Dave Ramsey, 06:42)

5. Memorable Moments & Quotes

• Dave’s Outspoken Style:

  • "You're so fucking—freaking scared." (Dave Ramsey, 03:59)
  • "Don't worship at the altar of the great FICO... We bring you offerings of interest, Great FICO." (Dave Ramsey, 08:57)

• Levity Among Frustration:

  • Sam: "A couple of broke, irresponsible losers." (08:33)
  • Dave: "What a moronic thing. You know, this bank wouldn't hire me... because I'm financially irresponsible by their measure because the sucker score is too low." (Dave Ramsey, 07:48)

6. Key Takeaways

• Your credit score only measures your use of debt—not true financial competence.
• Don't let employers or banks define your financial health by a FICO score.
• Being debt-free is an indicator of financial wisdom, not irresponsibility.
• Don’t be afraid to explain your financial choices to those in power—many policies are based on misconceptions.

Timestamps for Significant Segments

• Ren introduces his credit/employment dilemma: 00:06–01:35
• Dave rails against employer policies & FICO logic: 01:35–03:53
• Advice for confronting employers & the myth of FICO: 03:53–06:42
• Dave explains how FICO is scored and its real meaning: 06:42–08:33
• Closing rant: Don’t worship the credit score, final thoughts: 08:33–end

Overall Tone

• Passionate, blunt, and slightly irreverent—a classic Dave Ramsey deep-dive into financial myths, with practical advice and a strong call for independence from outdated corporate assumptions.