I guess it is about time I shared an opinionated blog post. I don't set out to offend, and I doubt this post will offend. I just wanted to put it out there that what I am about to share is my opinion and nothing more.
I often see people speaking negatively of credit cards. Most recently, I noticed this on the message boards for Confessions of a Shopaholic, which was essentially a film about a young woman who abused her credit card (review coming soon). I have no problem with people not using credit cards. That is a personal choice, regardless of the reason behind it. That said, it does bother me when people mention their non- use of credit cards in a way that implies that people who do use credit cards are idiots for doing so.
I believe that when used properly, a credit card can be a valuable tool. There are multiple reasons behind this. First off, credit cards will not charge interest on any charges paid off by the due date specified on the bill. This allows for me to purchase items without being forced to carry cash, and I earn cash back in return. Both of those are very major perks. Last June my wallet was stolen. I had a small amount of cash and a couple credit cards. The cash was gone, but it was an amount significantly less than it would have been had I not been using credit cards for the majority of my purchases. I promptly canceled all of my cards, and found that one was used for over $200. I was not liable for one cent of it. Had I been carrying cash instead, I would have been out $200.
Using my credit card also earns me cash back. Up to 5% on certain purchases. Many times, this 5% is available in a category I often purchase anyway, such as gas or groceries. It could add up to an easy $20 dollars a month, just for buying the same things I'd normally use cash for.
Understandably, credit cards aren't for everybody. Not everybody can be handed this magical card the allows them to buy as much as they want without paying upfront. I can imagine that it could be easy to lose track of charges as well. This is when credit card companies become the bad guy by charging interest. It is their right, though, as they are loaning a user credit, which in the long run, the credit company is accountable for. They are also known for changing their terms in a way that is unfair to the user. This can also be avoided if the user is careful. I often see people speaking negatively of credit cards. Most recently, I noticed this on the message boards for Confessions of a Shopaholic, which was essentially a film about a young woman who abused her credit card (review coming soon). I have no problem with people not using credit cards. That is a personal choice, regardless of the reason behind it. That said, it does bother me when people mention their non- use of credit cards in a way that implies that people who do use credit cards are idiots for doing so.
I believe that when used properly, a credit card can be a valuable tool. There are multiple reasons behind this. First off, credit cards will not charge interest on any charges paid off by the due date specified on the bill. This allows for me to purchase items without being forced to carry cash, and I earn cash back in return. Both of those are very major perks. Last June my wallet was stolen. I had a small amount of cash and a couple credit cards. The cash was gone, but it was an amount significantly less than it would have been had I not been using credit cards for the majority of my purchases. I promptly canceled all of my cards, and found that one was used for over $200. I was not liable for one cent of it. Had I been carrying cash instead, I would have been out $200.
Using my credit card also earns me cash back. Up to 5% on certain purchases. Many times, this 5% is available in a category I often purchase anyway, such as gas or groceries. It could add up to an easy $20 dollars a month, just for buying the same things I'd normally use cash for.
I suck at using credit cards, mine are all maxed out currently and it sucks. But a good friend of mine lives off his and pays them off in full each month. I admire that and hope I can do the same.
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