Credit Cards: Good or Bad?

Discussion in Credit Cards started by LindaKay • Mar 6, 2014.

  1. LindaKay

    LindaKayActive Member

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    So, many people feel strongly against credit cards. They think that you shouldn't spend money that you don't have and that credit cards make it easy to get into financial trouble.

    Then, some (like my mom) have dozens of credit cards and constantly use them.

    I think it's a good idea to have one credit card to build credit and to use for emergencies. I'm not a fan of having a lot of lines of credit because then I'm bad about using them too much.

    What do you think? Credit cards -- are they good, bad or in-between?
     
  2. Gmac9100

    Gmac9100Active Member

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    Bad. In my opinion credit cards only build up debt. That is why they were created. A Debit card is a much better alternative, because you can only spend what you earn. hat leaves no risk of debt. You should only get a credit card if you need a credit line. I would not recommend it though.
     
  3. Cara18

    Cara18Member

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    I think it just depends. I am not a fan of credit for myself. I just think their created to to put you in debt and I know I would spend the money if I had it. On the other hand it can be good for people who are good at saving money or for emergencies. I think you would just have to pay your credit card bill on time.
     
  4. Lostvalleyguy

    LostvalleyguyActive Member

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    Good! That is my vote. Spending money you don't have is a recipe for disaster. If you look at a credit cars as a convenient method of payment, there is a benefit to using one. Just make sure that you have the money to pay it off. When it comes time to pay the bill pay it in full and on time.

    It is an issue of personal responsibility. If you are able to conduct yourself in a responsible manner then a credit card can be an advantage (better credit rating = lower interest, cheaper car payments etc.). If you are not responsible with your money, then a credit card will likely exacerbate the problem.
     
  5. Denis Hard

    Denis HardWell-Known Member

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    Credit cards are bad for the impulsive shopper because you can buy stuff anytime you feel like doing it. This would make it hard for you to save money because most of what you earn will to toward settling old bills.

    Like Gmac9100, I think debit cards are better. You only spend the money you have.
     
  6. Dora M

    Dora MWell-Known Member

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    I have never possessed any other credit card than my prepaid visa card. And I simply had to get that one because many places won't accept cash any more, which I find ridiculous. I have a Load and go card, which means all I have to do is go to the post office and give them the amount of money I want to put on my card and I can use it straight away. This system has many advantages. For one thing I feel much safer being able to use small amounts of cash on the internet. Another bonus is that I don't pay any fees for loading the card or during any transactions. Or if there are any hidden fees, they must be so minimal that I haven't noticed them. I don't need any other credit cards than my prepaid visa.
     
  7. nwitt

    nwittActive Member

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    I think they're great if you know how to use them correctly! I have 6 or 7 cards that I have gotten throughout the last 8 years (I got my first one as soon as I turned 18). I was taught to put small charges and pay them off right away. I have had different uses for my cards over the years...for example I got a 0% card to purchase my Mac Air... I made equal payments all 12 months during the 0% APR promotion and was able to pay off the debt before any interest occurred. I also have an Amazon card that I used for any Amazon purchases because it accumulates points, which allows me to save on future purchase. I never have more than $300 at once on a credit card, unless it has a great promotion - in which I am paying off monthly.

    If you do it right, your credit cards will build your credit and allow you to make great improvements to your credit score.
     
  8. micah13

    micah13Member

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    I still think credit cards are a bad idea. Anything that allows you to spend money you don't have is a huge risk, especially when not being able to pay the bill leaves you with a huge fee and perhaps penalties on top of that. It's just not worth it. If you need to build credit, forget credit cards. Go get a small loan at the bank, and make the payments until it's all paid off, and don't spend that money on anything in the meantime!
     
  9. ACSAPA

    ACSAPAWell-Known Member

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    I think it depends on the card. Some cards have decent benefits and rewards programs, and some are a ripoff that prey on people who need credit. Discover It is great because they really do have late payment forgiveness and no over-limit fees and cash back rewards, Credit One is a total ripoff that has a $75 annual fee and charges you $5.99 for the convenience of online payment.
    If you're going to get a credit card for emergencies, get a good one like Discover It or Bank Americard Better Balance Rewards. Avoid those mailed offers from Credit One, they are a shady bank in Las Vegas that specializes only in credit cards. I think they chose that name because it kind of sounds like Capital One.
     
  10. LindaKay

    LindaKayActive Member

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    I thought the same thing when I received a pre approved offer from Credit One. It's shady to try to sound like another, more reputable company. Some people will actually fall for it, too.
     
  11. yossup

    yossupMember

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    If you're trying to build credit, then credit cards are a good thing in that they help you achieve whatever goals necessitating you to have good credit in order to achieve them. Honestly, I think using credit cards to pay for stuff you can't afford is extremely dumb and I find it hard to believe many people would still be doing this in today's economic climate.
     
  12. davbopol13

    davbopol13Active Member

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    It is important to have a good credit rating in this day and age. One of the ways to build credit is credit cards, if you can be responsible with them. Someone who has no self control shoud not have credit cards, I myself have trouble in this department so I don't have any. I also suffer from a bad credit score, so I am looking to borrow some money and pay it back with the money I borrowed!
     
  13. Annabell

    AnnabellActive Member

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    It's a tricky situation. On the one hand, you shouldn't be spending money that you don't have. On the other hand however, if you're that desperate to buy the item, and you don't have the self control to keep an eye on your finances, then you're going to use an overdraft on your debit card or something to go over that limit.
     
  14. Nickchick

    NickchickWell-Known Member

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    Yeah I guess it is tricky when you think about it but I never want to get a credit card (I don't have the credit for it anyway apparently). I just never liked the idea of owing money. Sometime you have to pay it back and that will be on my mind for as long as I am not able to pay it. Overdrafts are bad but with a credit card you often obtain interest when you don't pay it.
     
  15. richc3

    richc3Active Member

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    If you're not one to get lost within the seemingly carefree nature of a credit card then you should be able to take advantage of the perks associated with it. This can include cash back rebates, travel points, bonus insurance or warranty extensions on items, plus the ability to chargeback a merchant if you feel wronged. In addition, while many of us do hate the idea of debt the reality is most of us will face it at some point with a mortgage. To get the best interest rates on that mortgage, you need to build credit history and your best means of doing that is of course a credit card.
     
  16. bonzer

    bonzerActive Member

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    They are both good and bad. However, a credit card is introduced to cash in on the human desire for pleasure.
    Good because,
    1. It helps you when you most need the money and without any obligations from friends and family.
    2. It gives special offers and deals.
    3. It would help you with a good credit rating

    Bad because
    1. Lack of fiscal discipline could inundate you in a sea of debt
    2. Forces you into undesired expenditure through subsidized and goofy deals
    3. A false security of money in hand and more

    I personally detest an indiscriminate use of a CC. If you can't resist it, then don't go for it.
     
  17. xTinx

    xTinxWell-Known Member

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    Let's just say a credit card is a double-edged sword. It can be bad or good depending on how you use it. If you keep on purchasing unnecessary items using a credit card, then such a practice implies a lack of discipline on your part. All the more atrocious if you just swipe and swipe without a clear budget in mind. However, if you budget beforehand and use credit cards to pay necessities such as utility bills, insurance and appliances, then you're using your cards responsibly.
     
  18. Onionman

    OnionmanActive Member

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    Like many things they can be good if used in the right way. The right way, as far as I'm concerned, is when you can pick up points, get free insurance and have something to fall back on. But most people use them badly, only paying off the minimum balance and running the balance into the distant future. People tend to forget some basic principles: this is not your money, and for the privilege of using someone else's money you are going to pay a decent premium if you don't pay it back within the month.
     
  19. GemmaRowlands

    GemmaRowlandsActive Member

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    I think it's a good idea to use it to build credit, because you never know when you might need it in the future. The card that I have gives me rewards every time that I spend on it, and thanks to the fact that I always pay it off before it accrues any interest, it doesn't cost me a cent. So I make a lot of money on my credit card, which is great for me, and I always save the money up for Christmas and manage to get quite a lot of my gifts using it!
     
  20. remnant

    remnantActive Member

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    Credit cards are good in times of emergencies when one can't access credit from normal channels. However, to every positive, there is a negative. Credit cards should be used only when necessary so its upon the holder to acquire the habit of frugality which enables an individual to live within his or her means.