using credit card

[karmamiu]

the lesson that i learned here is that credit cards can be a valuable tool for building credit points/scores and making purchases, but they should be used responsibly and with caution. it is important to keep track of your spending(like keeping a journal), pay off the balance in full, each month if possible, and avoid carrying a balance that will increase interest over time. by being mindful of your credit card usage, you can avoid debt and maintain your financial health.

i am weak at economy, is it wise decision to use a credit card?

I don't like buying things on credit so I have always avoided applying for credit cards. If you want to live a financially free life, you should avoid debt. The scariest part of these credit facilities is the interests. I don't want to be indebted at an old age that will make me keep working till death. I think I should have the opportunity to retire peacefully and debt free after my children have left home. That is why I only buy what I need and not what I want so that I can stay debt free and have extra money to invest
.
It's not bad to have credit cards but you should have the ability to control your expenses. Credit cards could be helpful especially if you have spent part or all of your income on investment or something important. You need it to keep life going. But it shouldn't be used to buy things that are not basic.

Same here, using credit card cannot be called independent since there will be time where you will be too dependent on that card even if you didn't have much money. I have once avail a credit card before but didn't use it too much and decided to stop coz it felt like I am trap inside a deep pit of debts.

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[mich]

Well I am not the type of person that uses my credit card all so much. I will use my debit card or just pay with cash when I need to buy goods. Using a credit card for me is when doing online shopping for it is the only way to pay. If I have little in my account, I will use the credit card.
 
For me to use a credit card only if it is expensive. I do not like it when I have to pay interest for my credit card bill so I like to pay it off for each month. I only use just 1 credit card and there is not so much debt on it so I do not mind

[Wind_FURY]

i am studying in college, i was really excited to get my first credit card . i thought it will give me a sense of independence and allow me to buy things i could not afford with cash.

though, i quickly learned that credit cards can be a double edged sword. while they can be helpful in building credit, they can also lead to debt and financial trouble if not used responsibly.

at first, i used my credit card reasonably, only for like emergencies or small purchases that i knew i could pay off in full each month. but as time went on, i began using it more and more for larger purchases and impulse buys, without really thinking about how i would pay the balance off.

before i knew it, my credit card balance had  blown up to several thousand dollars, and i was struggling to make the minimum payments each month. the interest charges alone were eating up a significant portion of my income, and i felt like i was going under debt.

OP, NEVER USE YOUR CREDIT CARD FOR "SMALL PURCHASES", ESPECIALLY FOR UNIMPORTANT PURCHASES.

For emergencies yes, and for IMPORTANT large purchases for items/things that you truly need, like a laptop to use to be more productive and earn money, or an item that you can use to start a small business = definitely yes.

Not necessarily. I've been using a credit card since I was 20, in university, with a small credit limit though. I always paid the monthly bill on time and frequently used it for petrol, groceries, or even other purchases because I was receiving a small cashback each time. Now I have a proper credit card with a large limit that I used to buy my motorcycle in interest-free installments, on which I also received cashback. I'm using it almost everywhere to take advantage of it; it's not too much, but it's still better than nothing.

The trick with credit cards is to pay them always on time and to not fall into the trap of installment payments, buying things you don't need or can't afford and going into debt for several years in order to repay them.

Petrol and groceries are things you need, it's definitely OK. I'm talking about those small purchases like trendy clothes that you don't need, or something like sunglasses, just things that we want and don't truly need. Because if you can't afford to pay in cash, don't pay for that on credit. It would be a different situation if the person is rich.

[xSkylarx]

i am studying in college, i was really excited to get my first credit card . i thought it will give me a sense of independence and allow me to buy things i could not afford with cash.

though, i quickly learned that credit cards can be a double edged sword. while they can be helpful in building credit, they can also lead to debt and financial trouble if not used responsibly.

at first, i used my credit card reasonably, only for like emergencies or small purchases that i knew i could pay off in full each month. but as time went on, i began using it more and more for larger purchases and impulse buys, without really thinking about how i would pay the balance off.

before i knew it, my credit card balance had  blown up to several thousand dollars, and i was struggling to make the minimum payments each month. the interest charges alone were eating up a significant portion of my income, and i felt like i was going under debt.

OP, NEVER USE YOUR CREDIT CARD FOR "SMALL PURCHASES", ESPECIALLY FOR UNIMPORTANT PURCHASES.

For emergencies yes, and for IMPORTANT large purchases for items/things that you truly need, like a laptop to use to be more productive and earn money, or an item that you can use to start a small business = definitely yes.

Not necessarily. I've been using a credit card since I was 20, in university, with a small credit limit though. I always paid the monthly bill on time and frequently used it for petrol, groceries, or even other purchases because I was receiving a small cashback each time. Now I have a proper credit card with a large limit that I used to buy my motorcycle in interest-free installments, on which I also received cashback. I'm using it almost everywhere to take advantage of it; it's not too much, but it's still better than nothing.

The trick with credit cards is to pay them always on time and to not fall into the trap of installment payments, buying things you don't need or can't afford and going into debt for several years in order to repay them.

Petrol and groceries are things you need, it's definitely OK. I'm talking about those small purchases like trendy clothes that you don't need, or something like sunglasses, just things that we want and don't truly need. Because if you can't afford to pay in cash, don't pay for that on credit. It would be a different situation if the person is rich.

But it is more better to have not a credit card right? I don't know if we are the same view but for sure you'll be tempted to buy those things as you have your credit card with you , to force your self not to buy those things it is better to have cash or something card like debit/visa card that has money on it and then swipe it if ever you buy something because that is for sure you can buy it as you have your money with you unlike in credit card that you will do it monthly meaning you don't have money on that

[Yogee]

There are definitely people who manages their credit very well so I guess it all depends on the users. Sometimes I feel envious of the perks that my peers gets from using credit cards over time but I personally don't want incurring unnecessary debt. If I see an item or product I like but cannot afford at that moment then I simply walk away. Cash is king for me and if there's a thing I need to purchase online then I can just use debit cards. It acts like an online wallet so I just top up when needed.

[Altryist]

There are definitely people who manages their credit very well so I guess it all depends on the users. Sometimes I feel envious of the perks that my peers gets from using credit cards over time but I personally don't want incurring unnecessary debt. If I see an item or product I like but cannot afford at that moment then I simply walk away. Cash is king for me and if there's a thing I need to purchase online then I can just use debit cards. It acts like an online wallet so I just top up when needed.

Buying anything without a credit card is a good habit. I think that if you do not buy anything on credit, but wait half a year, or a year until you had to pay off the loan, then you will be able to save up and buy it without a loan, and with the money that you would have to pay as interest to the bank, just buy bitcoin.  It is best to refuse a credit card if it does not give you any advantage or benefit in everyday life.

[Ultegra134]

i am studying in college, i was really excited to get my first credit card . i thought it will give me a sense of independence and allow me to buy things i could not afford with cash.

though, i quickly learned that credit cards can be a double edged sword. while they can be helpful in building credit, they can also lead to debt and financial trouble if not used responsibly.

at first, i used my credit card reasonably, only for like emergencies or small purchases that i knew i could pay off in full each month. but as time went on, i began using it more and more for larger purchases and impulse buys, without really thinking about how i would pay the balance off.

before i knew it, my credit card balance had  blown up to several thousand dollars, and i was struggling to make the minimum payments each month. the interest charges alone were eating up a significant portion of my income, and i felt like i was going under debt.

OP, NEVER USE YOUR CREDIT CARD FOR "SMALL PURCHASES", ESPECIALLY FOR UNIMPORTANT PURCHASES.

For emergencies yes, and for IMPORTANT large purchases for items/things that you truly need, like a laptop to use to be more productive and earn money, or an item that you can use to start a small business = definitely yes.

Not necessarily. I've been using a credit card since I was 20, in university, with a small credit limit though. I always paid the monthly bill on time and frequently used it for petrol, groceries, or even other purchases because I was receiving a small cashback each time. Now I have a proper credit card with a large limit that I used to buy my motorcycle in interest-free installments, on which I also received cashback. I'm using it almost everywhere to take advantage of it; it's not too much, but it's still better than nothing.

The trick with credit cards is to pay them always on time and to not fall into the trap of installment payments, buying things you don't need or can't afford and going into debt for several years in order to repay them.

Petrol and groceries are things you need, it's definitely OK. I'm talking about those small purchases like trendy clothes that you don't need, or something like sunglasses, just things that we want and don't truly need. Because if you can't afford to pay in cash, don't pay for that on credit. It would be a different situation if the person is rich.

I understand your point, but I meant something different. I can also afford to buy expensive clothes or could have bought my motorcycle with my debit card, but instead, I prefer to use my credit card, firstly because of the cashback and, secondly, because I'm basically postponing the payment of the item or service I'm purchasing for a month. I know the latter sounds a little stupid, but it's purely psychological and makes no difference. We also don't have the credit rating that the USA has.

The issue starts if you're overpurchasing things you don't actually need and start piling debt on your cards. An easy way to fall for this is with interest-free installments.

[molsewid]

Well I am not the type of person that uses my credit card all so much. I will use my debit card or just pay with cash when I need to buy goods. Using a credit card for me is when doing online shopping for it is the only way to pay. If I have little in my account, I will use the credit card.
 
For me to use a credit card only if it is expensive. I do not like it when I have to pay interest for my credit card bill so I like to pay it off for each month. I only use just 1 credit card and there is not so much debt on it so I do not mind

Indeed, I only use that if you are about to buy a thing with minimal amount only, because you need to minimize the amount so the interest will not be so high. But it depends to the self discipline of the OP. I used cash for foods and other things  but as much as possible I don't want to use it because I don't want to pay a certain thing monthly I don't want to be bothered by credit companies.

[bettercrypto]

The credit card, if you look at it literally, will give you the opportunity to get something that is very difficult for you to buy with cash. What you couldn't buy in the past because the value was too expensive, now with a credit card you can afford to get it.

     Of course, as you mentioned in the end, you have to be wise in using it, it's true, if you only use the credit card for luxury and don't think about what it will be used for, it's like you're stabbing your own. a body that you don't realize has many wounds, and in the end you will realize that you are in debt because of the size of the profit you borrowed, which will be the reason that you will have a hard time getting rid of it.

[dunfida]

Well I am not the type of person that uses my credit card all so much. I will use my debit card or just pay with cash when I need to buy goods. Using a credit card for me is when doing online shopping for it is the only way to pay. If I have little in my account, I will use the credit card.
 
For me to use a credit card only if it is expensive. I do not like it when I have to pay interest for my credit card bill so I like to pay it off for each month. I only use just 1 credit card and there is not so much debt on it so I do not mind

Indeed, I only use that if you are about to buy a thing with minimal amount only, because you need to minimize the amount so the interest will not be so high. But it depends to the self discipline of the OP. I used cash for foods and other things  but as much as possible I don't want to use it because I don't want to pay a certain thing monthly I don't want to be bothered by credit companies.

Using up credit card isnt really that bad as long you are really that responsible on paying up on what you have used because if you arent a good payer then you would surely be experiencing lots of problems since you would be piling up some interest if you do miss out that monthly dues. Credit cards are actually helpful if you do make use on the good way on which it could really be saving you up on the time that you would be having some financial problem but of course you should make yourself that responsible.

People would be really having that bad impression towards it but mostly into those people who do have that bad experience about it but for those who do know on how to use of CC's then
for sure it would really be giving out that positive impression.

[SquallLeonhart]

it is more better to have not a credit card right? I don't know if we are the same view but for sure you'll be tempted to buy those things as you have your credit card with you , to force your self not to buy those things it is better to have cash or something card like debit/visa card that has money on it and then swipe it if ever you buy something because that is for sure you can buy it as you have your money with you unlike in credit card that you will do it monthly meaning you don't have money on that

It is not about temptation, it is about the fact that if you can't afford something but really want to buy it, then you could either make a mistake or you could make a calculation. Credit card doesn't mean that you have to pay it right now, it means you could pay it small by small per month, so you do not have to pay it now.

We need to get rid of the mindset that debt is bad, debt could be good under so many situations and in this case it means credit card should be used that way. For example if you pay it in cash, then you pay it in cash, but if you buy something that goes up in value because of inflation, and you pay with credit card and take it in 12 installments, by the time your debt is paid, it will worth even more and you would profit from it.

[Kakmakr]

The psychology behind the introduction of credit cards are simple, because people will spend more... when they do not see the impact of that spending. Let's compare "Cash" with "Credit cards" .....

So, when you use cash, you open your wallet and see a wad of notes and you can count those notes and know how much you can spend and you see how it is declining as you spend.

Credit cards are the total opposite.... you do not see the physical cash... as a matter of fact, you are spending something that you do not own. The more you spend.... the less you own, because you pay interest on that spending... so it is costing you more for that item or service than what the buying price is.

My advice : Destroy the credit card, until you can afford it and then only use it when you can pay it back immediately. I only use mine for online purchases and once I paid for it, I transfer the amount from my expense account to prevent the interest. 

[so98nn]

As you stated yourself, it should be utilised to fulfil the emergency situations only but CC is something that can take us on journey of desires and leisure. Most of the CC are advertised by banks in such way that we feel like it’s our financial freedom. They even freaking offer instant small and jumbo loans on the CC based on how you repay your payment.

It’s like sand sucker in the desert. Once you are in there is no way you can get out of it.

However, if you are wise enough to plan all the expenses well in advance then I don’t think it’s an issue. Of course, it’s up to every individual how they play the role in managing it all.

[NotATether]

All you have to do is "avoid spending until your balance is negative". Don't spend money that you don't have, and you'll avoid all kinds of financial trouble in your life. It is not necessarily the credit card that is bad but rather, your money management.

It is not about temptation, it is about the fact that if you can't afford something but really want to buy it, then you could either make a mistake or you could make a calculation. Credit card doesn't mean that you have to pay it right now, it means you could pay it small by small per month, so you do not have to pay it now.

People should be thinking like the transfer markets of sports teams in terms of whether buying "XYZ" will benefit them in the long run.

[xSkylarx]

The psychology behind the introduction of credit cards are simple, because people will spend more... when they do not see the impact of that spending. Let's compare "Cash" with "Credit cards" .....

So, when you use cash, you open your wallet and see a wad of notes and you can count those notes and know how much you can spend and you see how it is declining as you spend.

Credit cards are the total opposite.... you do not see the physical cash... as a matter of fact, you are spending something that you do not own. The more you spend.... the less you own, because you pay interest on that spending... so it is costing you more for that item or service than what the buying price is.

My advice : Destroy the credit card, until you can afford it and then only use it when you can pay it back immediately. I only use mine for online purchases and once I paid for it, I transfer the amount from my expense account to prevent the interest. 

I really dont get it why people still using credit card even they knew that they are paying it by the end of month with interest. Also spending the money that even you don't have. I don't have credit card and i really don't know how to use it but i know that you will pay by the end of the month with interest on it, which leaves me confused that if we just used our cash instead? so that we wont be paying on interest? For sure having credit card is like a power in your hands as you can buy anything within your credit limit but again you'll be struggling paying it on monthly basis.

[Wind_FURY]

i am studying in college, i was really excited to get my first credit card . i thought it will give me a sense of independence and allow me to buy things i could not afford with cash.

though, i quickly learned that credit cards can be a double edged sword. while they can be helpful in building credit, they can also lead to debt and financial trouble if not used responsibly.

at first, i used my credit card reasonably, only for like emergencies or small purchases that i knew i could pay off in full each month. but as time went on, i began using it more and more for larger purchases and impulse buys, without really thinking about how i would pay the balance off.

before i knew it, my credit card balance had  blown up to several thousand dollars, and i was struggling to make the minimum payments each month. the interest charges alone were eating up a significant portion of my income, and i felt like i was going under debt.

OP, NEVER USE YOUR CREDIT CARD FOR "SMALL PURCHASES", ESPECIALLY FOR UNIMPORTANT PURCHASES.

For emergencies yes, and for IMPORTANT large purchases for items/things that you truly need, like a laptop to use to be more productive and earn money, or an item that you can use to start a small business = definitely yes.

Not necessarily. I've been using a credit card since I was 20, in university, with a small credit limit though. I always paid the monthly bill on time and frequently used it for petrol, groceries, or even other purchases because I was receiving a small cashback each time. Now I have a proper credit card with a large limit that I used to buy my motorcycle in interest-free installments, on which I also received cashback. I'm using it almost everywhere to take advantage of it; it's not too much, but it's still better than nothing.

The trick with credit cards is to pay them always on time and to not fall into the trap of installment payments, buying things you don't need or can't afford and going into debt for several years in order to repay them.

Petrol and groceries are things you need, it's definitely OK. I'm talking about those small purchases like trendy clothes that you don't need, or something like sunglasses, just things that we want and don't truly need. Because if you can't afford to pay in cash, don't pay for that on credit. It would be a different situation if the person is rich.

I understand your point, but I meant something different. I can also afford to buy expensive clothes or could have bought my motorcycle with my debit card, but instead, I prefer to use my credit card, firstly because of the cashback and, secondly, because I'm basically postponing the payment of the item or service I'm purchasing for a month. I know the latter sounds a little stupid, but it's purely psychological and makes no difference. We also don't have the credit rating that the USA has.

Clothes, that's a small purchase = debit card. But I do understand your use of the credit card because of the cash back value. Although you also said you pay the bill in full right away, that's OK. The point is, avoid paying interest as much as possible, especially for things you don't truly need.

The motorcycle, big purchase = credit card, especially if you don't have more than ten months worth of savings, it could help.

The issue starts if you're overpurchasing things you don't actually need and start piling debt on your cards. An easy way to fall for this is with interest-free installments.

YES!

[BVeyron]

i am studying in college, i was really excited to get my first credit card . i thought it will give me a sense of independence and allow me to buy things i could not afford with cash.

though, i quickly learned that credit cards can be a double edged sword. while they can be helpful in building credit, they can also lead to debt and financial trouble if not used responsibly.

at first, i used my credit card reasonably, only for like emergencies or small purchases that i knew i could pay off in full each month. but as time went on, i began using it more and more for larger purchases and impulse buys, without really thinking about how i would pay the balance off.

before i knew it, my credit card balance had  blown up to several thousand dollars, and i was struggling to make the minimum payments each month. the interest charges alone were eating up a significant portion of my income, and i felt like i was going under debt.

it was not until i sat down and made a budget that i realized just how much my credit card debt was affecting my overall financial health. i had to make some tough choices and cut back on some of my expenses , but finally,
i was able to pay off the balance and get back on track.

the lesson that i learned here is that credit cards can be a valuable tool for building credit points/scores and making purchases, but they should be used responsibly and with caution. it is important to keep track of your spending(like keeping a journal), pay off the balance in full, each month if possible, and avoid carrying a balance that will increase interest over time. by being mindful of your credit card usage, you can avoid debt and maintain your financial health.

i am weak at economy, is it wise decision to use credit card?

Credit availability + impulse purchases = the way to enslave millions of people. The abundance of credit money worldwide is actually a problem, which makes top banks and their owners the most influential people in the world. This scheme works really good, there are many people who loan money and behave in a way they gamble, at first it is euphoric, then there come consequences...

[inthelongrun]

I'd been offered many times by banks for their credit cards and some of them are already free of annual fees but I always refused. What for? We are not supposed to spend money beyond our means. I only have 1 credit card and it's because it came from a friend working in a bank so I cannot refuse although I seldom use it and at the same time the card also functions as a debit card. I prefer using debit cards or cash because I am more aware of my current financial status.

Credit cards are still useful, especially during emergencies. But still, a responsible person should have savings for emergency purposes.

[Ultegra134]

~Snipped~

Perfect, you understand my point. Some may disagree, but credit cards are a great tool if you know how to handle them and avoid getting carried away. Cashback rewards aren't that great in my case, but it's still a small bonus: 1% on all transactions, 3% on gasoline, and 6% at a few specific shops. In other countries, such as the USA, the benefits are great, and with some cards, you're able to collect miles that you can redeem for free or discounted plane tickets.

If you're able to cover the yearly cost of the subscription and use it as a tool to take advantage of interest-free installments and earn some money from the cashbacks, you're doing great management.

[salad daging]

I really dont get it why people still using credit card even they knew that they are paying it by the end of month with interest. Also spending the money that even you don't have. I don't have credit card and i really don't know how to use it but i know that you will pay by the end of the month with interest on it, which leaves me confused that if we just used our cash instead? so that we wont be paying on interest? For sure having credit card is like a power in your hands as you can buy anything within your credit limit but again you'll be struggling paying it on monthly basis.

I don't know the exact reason why they use a credit card maybe out of habit or just want to use a credit card because it's simpler and can buy whenever they want, of course with a credit card there is interest that has to be paid every month because they don't use money myself I think the reason behind this all they have a different opinion with us.

I myself don't use a credit card because I know there is interest waiting, this won't be my habit by using that type but spending cash it would be better it's just that sometimes we are hesitant to spend a lot of money to buy something while it's different from buying a credit card like it's easy and there's hand power behind using it.

People who use credit cards have a stable salary and they are able to cover interest every month.