Credit Card Responsibility
At this point in time, I'd say it's quite useless to discuss advantages and disadvantages of credit cards. With some financial literacy and careful thinking, one can access whether having a credit card is beneficial or not.
However, many people still seem to get credit cards as an emergency measure. This is one of the biggest financial mistakes most do.
Yes, you can build credit, get discounts, frequent flier km, and banks usually offer you some kinds of perks or gifts on sign up. And yes, you can get easily accessible money you can spend in case some clouds start to form in the horizon. The problem with this line of thinking is that someone who is currently financially stable should not be thinking about credit cards, but rather about building up savings which would, with due preparation, be ready for that sudden car tire change or fridge breakdown.
It's undeniable that one who uses a credit card responsibly can take advantage of its advantages; moreover, each person has different needs, wants, and priorities when it comes to finance.
Nevertheless, owning a credit card should be seen, in most cases, as a last desperate resort. Not as a way to curb emergency spending, getting a new TV, travelling, or keeping up with your neighbor. I hope most people have realized by now that having a bigger car than everyone else in your immediate surroundings didn't work in the 80's and it will certainly not work nowadays.
Whatever your reasons for credit are, always ponder your possibilities right.
Ask yourself the questions: Do I need this credit? How will I pay it back? How will I spend it, if I have to? How will I manage it?
Never get a credit on a whim, which is what most banks are trying to get you to. Always weight advantages and disadvantages, and keep in mind that in the vast majority of the cases, having a credit card is not only useless, but a dire mistake.
However, many people still seem to get credit cards as an emergency measure. This is one of the biggest financial mistakes most do.
Yes, you can build credit, get discounts, frequent flier km, and banks usually offer you some kinds of perks or gifts on sign up. And yes, you can get easily accessible money you can spend in case some clouds start to form in the horizon. The problem with this line of thinking is that someone who is currently financially stable should not be thinking about credit cards, but rather about building up savings which would, with due preparation, be ready for that sudden car tire change or fridge breakdown.
It's undeniable that one who uses a credit card responsibly can take advantage of its advantages; moreover, each person has different needs, wants, and priorities when it comes to finance.
Nevertheless, owning a credit card should be seen, in most cases, as a last desperate resort. Not as a way to curb emergency spending, getting a new TV, travelling, or keeping up with your neighbor. I hope most people have realized by now that having a bigger car than everyone else in your immediate surroundings didn't work in the 80's and it will certainly not work nowadays.
Whatever your reasons for credit are, always ponder your possibilities right.
Ask yourself the questions: Do I need this credit? How will I pay it back? How will I spend it, if I have to? How will I manage it?
Never get a credit on a whim, which is what most banks are trying to get you to. Always weight advantages and disadvantages, and keep in mind that in the vast majority of the cases, having a credit card is not only useless, but a dire mistake.
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