Wisconsin entrepreneur who spends $20K a month mulls getting a credit card. Dave Ramsey says points are a ‘scam’ and reveals ‘secret sauce’ for profit

“My question is in regards to getting a business credit card and the downfall of what that would be,” she said in an appearance on The Ramsey Show (1).

She proudly told Ramsey that her business is debt-free and she only buys what she can afford.

But as an entrepreneur, she was curious about the pros and cons of getting a business credit card.

“So you’re only interested in points?” Ramsey asked, noting that technically Berkan doesn't need credit.

“Well, yes,” she admitted, laughing.

Ramsey had a firm answer for her, calling rewards programs a ‘momentary flex’ that distracts entrepreneurs from what actually builds long-term wealth in a business.

Points: Real value or illusion?

According to a 2025 J.D. Power study, the vast majority (89%) of U.S. small businesses use credit cards for purchases and many rely on features such as rewards and payment plans (2).

With constant expenses and tight margins, small business owners swipe credit cards more than almost anyone since they’re always looking for an edge on the bottom line.

But nearly half of small business owners who use credit cards say they’re struggling financially.

Meanwhile, the payoff from rewards drops if business owners are carrying balances on their cards, as interest charges eat into profits.

That’s why Ramsey argues that points don’t build real wealth. They don’t boost cash flow, grow your customer base or strengthen your business.

At best, rewards programs give a small discount on money you were already going to spend.

But they can also encourage owners to spend more and lean harder on bank credit.

Ramsey argued that the real “secret sauce” of business success isn’t reward points, but profitability and operational excellence.

“Your time and your brain calories are worth a lot more than you’ll be spending chasing a couple of points here or there,” he said.

In his view, rewards are perks, not profit-drivers.

Ramsey even went as far as to say that points are a “scam,” not in the legal sense, but in the sense that reward programs are designed to make people feel like they’re getting value for spending, not for saving.

Credit card rewards aren’t free money. They’re funded by fees merchants pay, costs that get baked into higher prices and rarely show up as real profit for a business (3).

So what’s the best call for a business owner when it comes to credit-card rewards programs?

The pros and cons of credit-rewards programs

Even though rewards can be tempting, credit cards can carry risks for small businesses:

• High interest rates. Carrying balances quickly wipes out any rewards earned and adds expenses if you’re loading up on debt (4).
• Cash-flow strain. If you don’t pay off your balances monthly, credit card use can actually delay revenue and make budgeting harder.
• Overspending. Business owners can be tempted to spend more than they typically would just so they can hit a threshold or score bonuses just to earn points.
• Liability and credit risk. Many business cards require personal guarantees, so if you miss payments it can impact your personal credit score (5).

On the other hand, if you’re a disciplined business owner — tracking your spending, avoiding overspending and paying your balance in full each month — reward programs can add value.

They might not be wealth builders, but credit cards can be used as cash-flow optimizers as long as you’re not carrying interest on debt each month.