Credit cards allow people to borrow money from their bank or a financial institution for the purchase of consumer goods and services. Because almost all businesses accept credit cards, there is virtually no limit to what can be bought with them.
While credit cards are convenient, they typically charge high interest rates often upwards of 29%. The good news is, you can avoid those nasty interest charges by paying back all of the money you borrowed within the specified grace period, which is usually 30 days or less.
Avoid getting a credit card if:
- You have trouble controlling your spending
- You lack the discipline required to pay off your credit card bill in full on a monthly basis
However, credit cards offer financially responsible folks the following benefits:
- Convenience. Credit cards eliminate the need to carry cash.
- Money management. Monthly statements make it easy to track your expenses.
- Higher credit scores. When used responsibly, credit cards can improve your credit score
- Monetary and product bonuses. Many cards offer cash, airline miles, free gasoline or other incentives.
- Other perks.Most companies offer consumer protection, insurance benefits, and extended warranties.
Photo Credit: GotCredit
Think we need to add more to avoid credit card
If you are paranoid and don’t want to be traced or give away your spending practices
If you don’t have 6 months of $ for emergency
Concider how they add to inflation. 1-3% of price goes to card companies. Hidden fees.
Psychological will cause you to overspend on products and lead you to believe you have more money than you actually have. Fake confidence.
Trick you for identity. Really pay for the experience of a premium card? Some kind of fake status with clevor marketing.
Really encourage your brain to consume. Can you park a car in 2 car garage? If you can’t you may need to avoid card.
Promote risk. I have been in a car that was running on empty and person kept driving to use their gas card at certain vender. If you cannot handle credit you will find you are running on fumes in alot of areas of your life.
Promote more junk mail than you ever thought possible! E mail and postal.
If you get the shakes or are so inconvenienced for not using one for 15 days than you should avoid card.
If you cant remember the credit card number. You may not know the balance.
If you sleep at night making the minimum payment and cannot shame yourself.
If you think about this narrative everytime you use a card or see it n your wallet than get one and pay it off every month with auto pay. You passed enjoy the $500.00 or more pt bonus.
(For entertainment purposes)
Your credit card company will defend you and protect you from scams. Your debit card or cash will not. I rented a car from Sixt in Leipzig at the airport. Filled the gas tank before dropping off car and PAID WITH CREDIT CARD for the gas. Sixt billed my credit card 40 euros (about $50) for not filling tank. I sent emails to Sixt including copy of gas receipt, spoke with them, offered copy of receipt, NADA, NOTHING. Charge remained on credit card bill. I called credit card company and they asked for emailed copy of the receipt which I provided. My credit card company sent stern note to Sixt and removed the charge same day. If I had paid cash for the gas or with debit card and gotten a receipt I would have been cheated out of my $50. because the debit card used for renting the car would have been dinged for the gas. Also I’m a mileage junkie so I like the miles. I never spend money to get miles, but if I’m spending and it costs the same cash or credit, I go for the credit card. My bill is paid in full twice a month so interest rates don’t interest me! I never buy what I don’t have cash to pay for in full. Using miles I recently traveled to India round trip Polaris for $185. plus miles. Seems like a deal!