If you don't abuse your credit card, they are great to have. For myself, I have 21 days to pay off what I spent, without paying any interest. 0% interest for 21 days. That's a good deal. That's like getting a payday loan interest free with additional time to pay it back. And if I don't pay it all back, the monthly minimum payment is super low. People like to say "you can't pay it off by making the minimum monthly payment". Well, what I do is this.. If you know you can't afford to make the full payment, make the minimum payment until you can afford to pay back in full. That gives you time to save up. Set some money aside and then make the full payment taking you out of debt the moment that you are able to. Really, if it took 4 months to gather up the money to pay off the credit card, how much would you have paid by making minimum payments? Not very much. Use your brain and your credit cards can be a good thing. If you are ever in an emergency, it is good to have them. Don't abuse them.
It's true that credit is a great tool to have as long as you use it wisely and don't abuse it or spend foolishly. It's handy to have credit available in case something unexpected happens.
I agree. Credit cards and credit in general is a very valuable thing to have. People who don't have access to credit pay more for money during emergencies. The interest on a credit card is pennies compared to the interest on a payday loan, title loan or the various signature loans that have sprung up to take advantage of people with no credit.
My husband is the only one who has a credit card and I never had any all my life. I don't remember the last time we used it (or borrowed money from it) but I'm pretty sure it was the time before we even got married. One of my rules in my life is to never use money that I don't already own because I hate the thinking of owing and having to pay back something in the future. I'd rather wait to get what I want until I have enough money and I feel more satisfied that way too.
Knowing how to use credit properly is the key. I think those people who are down on credit cards don't understand how they are intended to work. For me, paying by credit card is a convenience. It means I don't have to pay cash and I can pay only once a month in a lump sum rather than making several small payments. I don't technically borrow on my card - I already have the money for the items or will by the payment date the card saves me a trip to the bank. Making the minimum payment is never advised as it will cost a lot more in the end. One will get something paid off eventually paying the minimum but usually people who are paying only the minimum add to their debt by continuing to use their card and that is the trap. The minimum payment grows to the point where they can't pay it off and now they are in real trouble because the debt has become huge.
Credit cards really can be great tools. But, most people don't know how to use them. Many don't see the 18% APRs or the annual fees, or the limits, and that can be very dangerous financially. I think, though, that if you use a credit card just as you would cash, then you can do just fine and maybe rack up cash back points as well.
We are living in a credit society. It's important to use it wisely. Eventually our currency will be purely credit based. The problem with a lot of people is that they feel too comfortable with credit. Just like they do in a casino when holding casino chips. It doesnt feel real to them. They tend to spend more because of this.
Agreed. People who say don't get credit cards generally don't budget out properly in order to afford what they're spending each month. And while it's true you can't pay off your credit card debt by making the monthly payments, your spending should never get out of control to the point where it becomes a major issue. If you can only afford minimum payments each month, then you shouldn't be using the credit card for purchases. Keeping in mind of what you're spending and budgeting for it each month is the best way to stay out of credit card debt.
Exactly. And people tend to use excuses when it comes to credit cards. they talk about them like they are a bad thing to have. For most part, anything you have (and don't abuse) can be a good thing. Like drugs for example. If you abuse them they can ruin your life. If you use the right ones, they can expand your mind and create a stronger version of who you are. It's almost like karma. You abuse things and they abuse you back.
Using your credit card requires discipline which most people don't use. If you can pay the full amount when the bill comes due you should. When you pay interest on an item you purchased on sale is really erasing the savings you tried to get and the longer it takes to pay off the balance the more it adds to the cost of the item.
This is exactly what gets people in trouble, though. They think "Oh, I'll be able to pay this off a couple months from now when 'such n such' happens or gets better"....but then they're constantly behind and fall farther behind. They rely on the hope that things will get better when it's not necessarily guaranteed to do so.
Yeah, but most people are not that very intelligent. so I don't use "most people" as an example. It's not hard to plan. Take out a paper, calculate your payments and create a payment plan. It's not hard to do. You can pay the minimum payment, while saving money (following your payment plan). Once you have enough, BOOM - make the payment and pay off the card. People like to make excuses, life is easy.
Credit cards are a two-edged sword. If you're responsible, they build up your credit score and provide a great safety not. If you're reckless, they do just the opposite. For this reason, I really believe new age limits need to put on them. In my opinion, no one under 25-years-old should have access to a credit card.
I'm huge on direct cash back rewards cards. I like to think it's a permanent 2-5% discount off everything I buy. In addition, most cards tend to have some sort of price protection and extended warranty to cover you if you have any sort of issues with a product you bought. That said, it worked the best for me in University where I could place those huge tuition costs on a card and pay them off immediately with the student loans deposited into my bank account. I basically got a "free" full course semester out of it.
Well if the person is not an impulsive and lavish spender, then a credit card is a good thing to have. But if they are the exact opposite, then a credit card in their hands is a surefire ticket to debt. As for me, I don't own a credit card, and I honestly don't intend to have one because I'm quite content with just having a debit card.
This. Most people can't handle being allowed access to an extre $500-$2500 and will go mental and spend it all and thats what the credit card companies are banking on, they WANT you to lose your head and max out your cards. I am not a fan of them and tell people they can do without the crap that they bring.
That's good. Most people--though--are so trusting of 'the employment industry' that they feel they can COUNT ON their future-salary as surely as they can count on 'money in the bank' (Granted, their salaries are probably guaranteed in contracts; but still, the future IS unknown). Credit-cards allow them to SPEND that future-money. Actually, cash is said to be a 'bank note' holding credit. (The original banks would hold the precious metals that people brought in and give them 'bank notes' to verify that holding in the bank.) Don't those companies charge a fee, which is where the cashback-cash comes from?
