Does Using a Credit Card Demonstrate Financial Literacy?

[Hewlet]

Discipline! Discipline! Disciple! Is the number one factor here.
I know, that not using credit cards limits how frequently we make unnecessary transactions and somehow that plays a good role in increasing our saving habits but that shouldn't close the fact that it is more convenient to make transactions via your credit card and because the world has seriously evolved past the stage of going out with huge physical cash as there is a high chance of theft or chances that the money can get missing, the credit card becomes a necessity for all.

If you are disciplined enough you will be able control how frequent you make transactions using your debit card.

You can also decide to open an account for savings without collecting a debit card and have another which is for spending. Then you deposit a budgeted amount you wish to spend for the month into the account and you try not to spend more than that amount every month and that way you will be guided on how much you are to spend on a regular bases.

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[lixer]

I don't have credit card but I use pay later services on ecom sites because with this payment method returns are faster, I pay the accured amount before the due date, it increases my credit score which is extra bonus, I find nothing wrong with it despite in past myself despising credit cards.

Whether literate or otherwise, credit cards are fine as long you pay on time. It might be hard to do so for CC addicts, hence may be financial advisors recommend using cash for payments.

It depends on how much self-control one has if they have a credit card because lack of patience and self-control can make people do things that they might regret later but since the credit card allows them, they go with it. Things like gambling or buying things that aren't necessary and are expensive must not be done with credit cards because if you are using cash, you won't be able to do that once you are out of cash, but with a credit card, you are allowed to do anything to a certain limit because the bank or credit card company will get fees, interests, and taxes in return for that and they wouldn't want you to stop.

So a person who knows their nature and understands that they don't have self-control and can't be careful with their purchases or if they are addicted to gambling should avoid having a credit card and should only use cash for payments where needed so that they only spend what they own.

[mindrust]

It is all relative. Debt can be good sometimes. When the interest rates are lower than the interest rates, it is a brilliant idea to borrow money because the prices will go up in value faster than the interest you are going to pay. As long as you know what you are doing cc or cash can be better in different situations. People go nuts when they hear the word “debt” but they don’t know how amazon become that big. They paid no taxes because they borrowed so much money and made investments. That’s a loophole in the taxing system which everyone can take advantage of. There are two kinds of debt: Good debt and bad debt. If you are borrowing money to build something productive, then it is good debt.

[stomachgrowls]

Discipline! Discipline! Disciple! Is the number one factor here.
I know, that not using credit cards limits how frequently we make unnecessary transactions and somehow that plays a good role in increasing our saving habits but that shouldn't close the fact that it is more convenient to make transactions via your credit card and because the world has seriously evolved past the stage of going out with huge physical cash as there is a high chance of theft or chances that the money can get missing, the credit card becomes a necessity for all.

If you are disciplined enough you will be able control how frequent you make transactions using your debit card.

You can also decide to open an account for savings without collecting a debit card and have another which is for spending. Then you deposit a budgeted amount you wish to spend for the month into the account and you try not to spend more than that amount every month and that way you will be guided on how much you are to spend on a regular bases.

Indeed! Discipline and self control on which you would really be needing this thing in the first place because if you wont then most likely you would really be messing up your life  with credit cards.
I have that horrible experience and past about credit cards on which i have been paying for minimum amount due for almost 2 years on which simply means that paying up only the interest
because i cant really be able to repay it in full on which i did suffer on paying it up for a while and promise myself that i would really be never on carelessly be using up my credit card
if it wont really be that necessary. Its really that a lesson learn for me on which you would really be having that kind of impression on the time that you would really be
experiencing for yourself.

Its true that it is really that indeed beneficial if you do really know on how to make use of it, it turns out that people or humans are really that not much in concern about their spending.
As long they do know that they are really that capable on doing things then this is where they would really be that using up things without even
knowing about the risks. They would really be only mindful when they are experiencing problems.

[Ben Barubal]

Do you believe that someone who exclusively uses cash for their purchases rather than credit cards is demonstrating financial literacy? Many argue that people tend to be financially reckless when using credit cards, often forgetting that it involves borrowing money. In various Netflix TV shows depicting individuals in debt seeking advice from financial advisors, the most consistent suggestions for getting out of debt are usually to cut up their credit cards and transition to making cash payments.

Individuals who avoid using credit cards tend to have a higher probability of being debt-free, showcasing financial discipline, and experiencing greater satisfaction compared to those reliant on credit cards. What are your thoughts on this stance?

  Rather than demonstrating financial acumen, owning a credit card demonstrates the ignorance of other credit card users. The majority of credit card users are still deeply in debt. Rather than having no debt, you or we caused ourselves pain by doing something that caused us to have a problem.

  Others even say that they wish they had never asked for credit in the first place. While having credit is nice in the beginning, you'll first notice and determine whether you have it when you start making monthly payments. Is financial literacy a legitimate term?

[gunhell16]

There are those who are poor but knowledgeable in financial literacy—I mean, the poor—who struggle to get out of poverty and create a life through a tiny business that, with time, increases till it grows.

However, when the others here started their tiny business, they did not have credit cards. They may not have been aware of financial literacy, but the fact that they have built their little business demonstrates that they are doing things that necessitate proper financial awareness in order to manage the firm they established.

Others merely use credit cards to keep up with trends or with social climber pals.

[Promocodeudo]

This is choice, if I decide to use cash for purchase or payment of any stuff I want to buy, it just my personal decision and reason best known to me, from my personal view I don't think that anyone that's using cash for payment is exhibiting financial literacy, personally I spend a lot when I have cash in my possession this differs with individuals, people tends to like different form of payment and is personal, when I use credit card for pay am always very careful about my expenses, am very discipline with money in general, I have the knowledge that any amount you spend will never come back to you, this have reposition my level of expense, I don't like to mismanage money knowing fully well that it was not easy for me to get it.

[DabsPoorVersion]

Do you believe that someone who exclusively uses cash for their purchases rather than credit cards is demonstrating financial literacy? Many argue that people tend to be financially reckless when using credit cards, often forgetting that it involves borrowing money. In various Netflix TV shows depicting individuals in debt seeking advice from financial advisors, the most consistent suggestions for getting out of debt are usually to cut up their credit cards and transition to making cash payments.

Individuals who avoid using credit cards tend to have a higher probability of being debt-free, showcasing financial discipline, and experiencing greater satisfaction compared to those reliant on credit cards. What are your thoughts on this stance?

  Rather than demonstrating financial acumen, owning a credit card demonstrates the ignorance of other credit card users. The majority of credit card users are still deeply in debt. Rather than having no debt, you or we caused ourselves pain by doing something that caused us to have a problem.

  Others even say that they wish they had never asked for credit in the first place. While having credit is nice in the beginning, you'll first notice and determine whether you have it when you start making monthly payments. Is financial literacy a legitimate term?

Using a credit card will put you in debt, but knowing your limits and how to use credit cards accurately will make you able to pay your credit card expenses while enjoying the rewards/benefits. The majority of credit card holders do feel like they can purchase anything they want, which is a common mistake, especially for new credit card holders.

If only most credit card users know how to handle their usage of their credit cards they won't think that way. Having a huge debt is their own mistake for spending over their budget, instead of identifying first the limit of their capability to pay the credit cards, they tend to purchase more than they can pay.

[Inwestour]

Using a credit card will put you in debt, but knowing your limits and how to use credit cards accurately will make you able to pay your credit card expenses while enjoying the rewards/benefits. The majority of credit card holders do feel like they can purchase anything they want, which is a common mistake, especially for new credit card holders.

If only most credit card users know how to handle their usage of their credit cards they won't think that way. Having a huge debt is their own mistake for spending over their budget, instead of identifying first the limit of their capability to pay the credit cards, they tend to purchase more than they can pay.

It’s better to use a card that doesn’t have an available credit limit, this will save you from a lot of problems. And this is not as difficult as it might seem, you simply reduce your credit limit to zero, or better yet, open a card at the bank on which the credit function is not available. Then you will add some amount to the card and use only your available money. And if you allow uncontrolled spending of money, especially credit, for which you will still have to pay interest, then this will only be unnecessary additional expenses.

[Yogee]

[....]
It’s better to use a card that doesn’t have an available credit limit, this will save you from a lot of problems. And this is not as difficult as it might seem, you simply reduce your credit limit to zero, or better yet, open a card at the bank on which the credit function is not available. Then you will add some amount to the card and use only your available money.

I've never seen a credit card with zero available credit. What kind of CC is this?
This is probably the third time in this forum that I've read about a CC that you can top up. Can you give us a link so I can understand better as it looks like you are referring to a debit card.

It's better to have a credit limit from the CC that I am familiar since this allows you to control your spending.

[DabsPoorVersion]

Using a credit card will put you in debt, but knowing your limits and how to use credit cards accurately will make you able to pay your credit card expenses while enjoying the rewards/benefits. The majority of credit card holders do feel like they can purchase anything they want, which is a common mistake, especially for new credit card holders.

If only most credit card users know how to handle their usage of their credit cards they won't think that way. Having a huge debt is their own mistake for spending over their budget, instead of identifying first the limit of their capability to pay the credit cards, they tend to purchase more than they can pay.

It’s better to use a card that doesn’t have an available credit limit, this will save you from a lot of problems. And this is not as difficult as it might seem, you simply reduce your credit limit to zero, or better yet, open a card at the bank on which the credit function is not available. Then you will add some amount to the card and use only your available money. And if you allow uncontrolled spending of money, especially credit, for which you will still have to pay interest, then this will only be unnecessary additional expenses.

Is this a debit card or real credit card?
In our country credit cards have a credit limit, however, some do not have a limit (unlimited) if they are approved with a black card. This is the first time I heard about a credit card with no limit and only uses your available money. If a function like this is available, better to apply and use this to avoid overspending.

[dunfida]

Using a credit card will put you in debt, but knowing your limits and how to use credit cards accurately will make you able to pay your credit card expenses while enjoying the rewards/benefits. The majority of credit card holders do feel like they can purchase anything they want, which is a common mistake, especially for new credit card holders.

If only most credit card users know how to handle their usage of their credit cards they won't think that way. Having a huge debt is their own mistake for spending over their budget, instead of identifying first the limit of their capability to pay the credit cards, they tend to purchase more than they can pay.

It’s better to use a card that doesn’t have an available credit limit, this will save you from a lot of problems. And this is not as difficult as it might seem, you simply reduce your credit limit to zero, or better yet, open a card at the bank on which the credit function is not available. Then you will add some amount to the card and use only your available money. And if you allow uncontrolled spending of money, especially credit, for which you will still have to pay interest, then this will only be unnecessary additional expenses.

Is this a debit card or real credit card?
In our country credit cards have a credit limit, however, some do not have a limit (unlimited) if they are approved with a black card. This is the first time I heard about a credit card with no limit and only uses your available money. If a function like this is available, better to apply and use this to avoid overspending.

Dont know if those black cards exist without having that kind of limitation on which i do only read these things on a book. 
If this one really exist then for sure it is really just to those elites who are really that eligible on holding that card and its not something that ordinary person could get a hold of.
For credit cards then the banks would really be deciding on how much credit limit that they are putting and we know that you are really that giving out those income information and other related stuffs
and they are the ones who would really be putting up those limits and of course they cant really just give out some limits if they do see that you arent that qualified for that.
Banks are smart they cant just give out so easily if you cant be able to repay it on time on the moment you had reached our your max limit.

Debit card is different literally on which it would really be that basing on the money that you had saved up into that account.
So it would really be understandable on how much you could only spend.

[slapper]

Using a credit card will put you in debt, but knowing your limits and how to use credit cards accurately will make you able to pay your credit card expenses while enjoying the rewards/benefits. The majority of credit card holders do feel like they can purchase anything they want, which is a common mistake, especially for new credit card holders.

If only most credit card users know how to handle their usage of their credit cards they won't think that way. Having a huge debt is their own mistake for spending over their budget, instead of identifying first the limit of their capability to pay the credit cards, they tend to purchase more than they can pay.

It’s better to use a card that doesn’t have an available credit limit, this will save you from a lot of problems. And this is not as difficult as it might seem, you simply reduce your credit limit to zero, or better yet, open a card at the bank on which the credit function is not available. Then you will add some amount to the card and use only your available money. And if you allow uncontrolled spending of money, especially credit, for which you will still have to pay interest, then this will only be unnecessary additional expenses.

Is this a debit card or real credit card?
In our country credit cards have a credit limit, however, some do not have a limit (unlimited) if they are approved with a black card. This is the first time I heard about a credit card with no limit and only uses your available money. If a function like this is available, better to apply and use this to avoid overspending.

Dont know if those black cards exist without having that kind of limitation on which i do only read these things on a book. 
If this one really exist then for sure it is really just to those elites who are really that eligible on holding that card and its not something that ordinary person could get a hold of.
For credit cards then the banks would really be deciding on how much credit limit that they are putting and we know that you are really that giving out those income information and other related stuffs
and they are the ones who would really be putting up those limits and of course they cant really just give out some limits if they do see that you arent that qualified for that.
Banks are smart they cant just give out so easily if you cant be able to repay it on time on the moment you had reached our your max limit.

Debit card is different literally on which it would really be that basing on the money that you had saved up into that account.
So it would really be understandable on how much you could only spend.

These cards aren't fiction; they're a reality for the financial elite, a symbol of creditworthiness and high economic standing. I've read the same books, seen the same stories, but I know for a fact that these cards exist. They're not for the average person; they're for those who have reached a pinnacle of financial success that most can only aspire to

Now, when it comes to credit cards, banks are indeed the gatekeepers of credit limits. I know this because I've dealt with these institutions extensively. They scrutinize your income, your financial habits, your credit history before they assign you a limit. They're not in the business of handing out free money. They want to know, can you repay what you borrow? If the answer is uncertain, they'll tighten the reins. It's not personal; it's prudent economics

As for debit cards, they're different . They're tied directly to your money, your savings, your financial reservoir. The limit is what you have; it's your money, after all. It's straightforward, no illusions of extra wealth. It's a reflection of your financial discipline, how much you've saved, not how much credit a bank deems you're worthy of. It's a practical tool for practical spending, nothing more, nothing less

[Inwestour]

I've never seen a credit card with zero available credit. What kind of CC is this?
This is probably the third time in this forum that I've read about a CC that you can top up. Can you give us a link so I can understand better as it looks like you are referring to a debit card.

It's better to have a credit limit from the CC that I am familiar since this allows you to control your spending.

Contact the bank where you have the card and ask them about the available products, they will provide you with all the information you need. Most likely, you can open a simple card for payments, without a credit limit, but if you don’t need this and want to have a credit limit and control it, then there are no problems with that, just use what is more convenient for you.

Sometimes I see credit programs that allow you to pay for goods with virtually no overpayments, apparently these are some kind of sales or something like that, so a loan is not always bad.

[DabsPoorVersion]

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Dont know if those black cards exist without having that kind of limitation on which i do only read these things on a book. 
If this one really exist then for sure it is really just to those elites who are really that eligible on holding that card and its not something that ordinary person could get a hold of.
For credit cards then the banks would really be deciding on how much credit limit that they are putting and we know that you are really that giving out those income information and other related stuffs
and they are the ones who would really be putting up those limits and of course they cant really just give out some limits if they do see that you arent that qualified for that.
Banks are smart they cant just give out so easily if you cant be able to repay it on time on the moment you had reached our your max limit.

Debit card is different literally on which it would really be that basing on the money that you had saved up into that account.
So it would really be understandable on how much you could only spend.

These cards aren't fiction; they're a reality for the financial elite, a symbol of creditworthiness and high economic standing. I've read the same books, seen the same stories, but I know for a fact that these cards exist. They're not for the average person; they're for those who have reached a pinnacle of financial success that most can only aspire to

Now, when it comes to credit cards, banks are indeed the gatekeepers of credit limits. I know this because I've dealt with these institutions extensively. They scrutinize your income, your financial habits, your credit history before they assign you a limit. They're not in the business of handing out free money. They want to know, can you repay what you borrow? If the answer is uncertain, they'll tighten the reins. It's not personal; it's prudent economics

As for debit cards, they're different . They're tied directly to your money, your savings, your financial reservoir. The limit is what you have; it's your money, after all. It's straightforward, no illusions of extra wealth. It's a reflection of your financial discipline, how much you've saved, not how much credit a bank deems you're worthy of. It's a practical tool for practical spending, nothing more, nothing less

Yes, I'm referring to Amex black card. This is not a fiction but only being issued to ultrawealthy people or the high-spending people with the capability to pay whatever the amount is. Meaning, only a few people have this. AFAIK, even with having no spending limit, Amex black card has a requirement for expenses to be paid in full every month. Aside from that, a black card is not a type of credit card you may apply, it's only being issued to selected individual thru invitation only.

[btc78]

Owning a credit card is tempting you to buy those things even you cant afford it in cash. I know there is nothing wrong with it but you will tend to buy useless things. I am living in a country where if you have a credit card you are in the middle class to the rich and most of what I've heard is that they have a credit card for credit score because of discounts and take out big loans but for me it is still better paying in cash mostly if I want to buy stuff and not tempted to buy it using a credit card.

the temptation to buy things you don’t need is huge when you have a credit card but that’s not all there is to it

credit cards allow you to pay things like medical bills wherein in some cases it’s unexpected and out of budget you can’t put health aside so it’ll be really helpful if you had the choice to pay with a credit card if you don’t have the money currently you can also pay for home repairs and buy house appliances if you really need it instead of enduring whatever it is that’s wrong in your house

[benalexis12]

Discipline! Discipline! Disciple! Is the number one factor here.
I know, that not using credit cards limits how frequently we make unnecessary transactions and somehow that plays a good role in increasing our saving habits but that shouldn't close the fact that it is more convenient to make transactions via your credit card and because the world has seriously evolved past the stage of going out with huge physical cash as there is a high chance of theft or chances that the money can get missing, the credit card becomes a necessity for all.

If you are disciplined enough you will be able control how frequent you make transactions using your debit card.

You can also decide to open an account for savings without collecting a debit card and have another which is for spending. Then you deposit a budgeted amount you wish to spend for the month into the account and you try not to spend more than that amount every month and that way you will be guided on how much you are to spend on a regular bases.

Maybe from another angle it can be said that there is knowledge in financial literacy; if they really know that thing themselves, I think it's fine to have a credit card as long as it doesn't affect their lives.

The credit card is actually helpful as long as you know how to control yourself when using it, because if you don't, you will be really deep in debt because of the amount of interest they charge on it. What is really needed is discipline and knowing how to implement self-control.

[Peanutswar]

Having a Credit Card (CC) is a responsibility, the main concept of the CC is just a pay later if you think on yourself that you are capable of paying those things you swipe with your CC you do not need to worry about the due, reason why there's a lot of people scared with the CC is they mishandle their cards properly they as always late with the due date cause another penalty every due date they missout lend to the number of increasing of penalties they need to pay, but if you are a responsible holder for sure you will enjoy the perks of using the CC.

[Yogee]

I've never seen a credit card with zero available credit. What kind of CC is this?
This is probably the third time in this forum that I've read about a CC that you can top up. Can you give us a link so I can understand better as it looks like you are referring to a debit card.

It's better to have a credit limit from the CC that I am familiar since this allows you to control your spending.

Contact the bank where you have the card and ask them about the available products, they will provide you with all the information you need. Most likely, you can open a simple card for payments, without a credit limit, but if you don’t need this and want to have a credit limit and control it, then there are no problems with that, just use what is more convenient for you.

Sometimes I see credit programs that allow you to pay for goods with virtually no overpayments, apparently these are some kind of sales or something like that, so a loan is not always bad.

I don't have any yet as I said before but I'm pretty much aware about cards having credit limits and those without which is only available to the elites. What I really want to know is the type of credit card that you mentioned previously but you didn't answer that one. I think you were only referring to a regular ATM card or a debit card

[philipma1957]

I don't have credit card but I use pay later services on ecom sites because with this payment method returns are faster, I pay the accured amount before the due date, it increases my credit score which is extra bonus, I find nothing wrong with it despite in past myself despising credit cards.

Whether literate or otherwise, credit cards are fine as long you pay on time. It might be hard to do so for CC addicts, hence may be financial advisors recommend using cash for payments.

The key 🔑 is if you have proper discipline. CC can make you lots of money 💰 in rebates etc.

Or cost you lots of money if you are an addict.