Are Credit cards wise?

[TheUltraElite]

Just like the OP said, nothing is permanent and we shouldn't overlook the fact that the table can turn anytime without our awareness, so it's really important to avoid anything that will make you bankrupt.

Credit card will make you bankrupt if you are reckless with spending from it. There are some no-no in credit card world and these should be carefully followed, like paying back the total amount due on time and not withdrawing cash from ATM using credit cards. Going close to your limit means you are spending more than what you need, look back at your costs and try to find out what are the things you dont need to buy but can live without.

Still if you feel credit cards will bring in more mess in your life, avoid them altogether. They should be used by people who have their lives more or less sorted and are alert about paying back in time.

[Unknown Op]

The use of credit cards for me is unwise. You are spending money that’s not even yours yet. How sure are you that you can pay for everything you are buying now? No matter how good your source of income is, nothing is permanent. Credit cards only force you to spend more than what you can. Agreed?

It depends on the person who is using the credit card whether they use it wisely or not normally people considered credit card as risk of spending money that they have not yet been earned and that bring them into debt trap. But there are many people who are using it as a financial tool rather than considering it a loan trap. These credit cards provide them the facilities and benefits that the cash is not providing it give them security credit building, sometimes they get cashback by spending through credit cards on groceries , fuels.  They get different type of discounts on shopping through credit cards. So if someone is spending money without a thinking then credit card is not a good choice for them but those who have disciplined spending they can make good use of these cards.

[bakasabo]

Just like the OP said, nothing is permanent and we shouldn't overlook the fact that the table can turn anytime without our awareness, so it's really important to avoid anything that will make you bankrupt.

Credit card will make you bankrupt if you are reckless with spending from it. There are some no-no in credit card world and these should be carefully followed, like paying back the total amount due on time and not withdrawing cash from ATM using credit cards. Going close to your limit means you are spending more than what you need, look back at your costs and try to find out what are the things you dont need to buy but can live without.

Still if you feel credit cards will bring in more mess in your life, avoid them altogether. They should be used by people who have their lives more or less sorted and are alert about paying back in time.

There arent idiots in banks that will issue a credit card without limit to a person who has no money on account or positive history with that bank. I dont think that a person can go bankrupt because of a credit card unwise usage, as they usually have only several thousands (let say 3-5k) on a balance. Moreover, banks issue credit cards only to people with stable income. Maybe it is different in your country, but in my, if you earn for example 2-3k EUR, have a positive balance of 5-10k on your account, bank will give you a credit card with 2-5k balance limit. You wont get a card with 100k on it, and you spend all of them, bank will force you to sell your property and go live on the street.

I am not much of a credit card user, but it has saved me few times when I had to make a large payment but got stuck with debit card daily limit (which I forgot to increase and which will be increased only next day).

[Ishicryptic]

The use of credit cards for me is unwise. You are spending money that’s not even yours yet. How sure are you that you can pay for everything you are buying now? No matter how good your source of income is, nothing is permanent. Credit cards only force you to spend more than what you can. Agreed?

I don't think that we have credit cards in Nigeria, I only used to hear about it on the news about how people spend money that they are yet to earn through credit cards and I used to envy people in countries that allowed it. I later realized that it made us who don't have it to be forced to spend only what we can afford and that is why cash and carry businesses are many in Nigeria. Even if we have credit cards in Nigeria, it's not popular but the latest trend is Fintech banks and loan apps that are offering loans to everybody, their adverts are annoyingly everywhere.

Unfortunately people just take loans for unnecessary expenses like buying a new shoe to attend a party or just to have a drink with friends, there is nothing wrong if you can comfortably repay it but some will borrow just because there is somewhere to borrow it. I don't know how people get indebted in credit cards but I know a couple of people who are always broke after repaying their loans.

[dansus021]

Are Credit cards wise? Lot of people will said it depend on person and how to use it, but I do agree with you because personally my spending habbit is like crazy, as a human being with greed I just want to buy everything. Did you know that lot of app over you "Buy now pay later" and yes Im stuck with this. Here in Indonesia, you can easily borrow anything with simple give the company your ID.

Credit card or any other form of loan today can offer 0% interest from 1-6 month which is insane but still, spending money that is not your isnt my thing. I just ask google and he said something like this As of the fourth quarter of 2025, total U.S. credit card debt outstanding has reached $1.28 trillion. Balances rose by $44 billion during this period, marking a 5.5% increase from the previous year. This debt averages to roughly $5,000 for every adult in the country. This is super massive.

[AgriTrack]

Credit card will make you bankrupt if you are reckless with spending from it. There are some no-no in credit card world and these should be carefully followed, like paying back the total amount due on time and not withdrawing cash from ATM using credit cards. Going close to your limit means you are spending more than what you need, look back at your costs and try to find out what are the things you dont need to buy but can live without.

Still if you feel credit cards will bring in more mess in your life, avoid them altogether. They should be used by people who have their lives more or less sorted and are alert about paying back in time.

The question is being asked whether it is wise to use a credit card or not. If you pay your bills on time and do not make unnecessary expenses, then a credit card proves beneficial, but if you do not pay the loan on time, then interest and fees may be charged. If you pay your bills on time, then your credit history can improve. A credit card is a means through which you can make purchases by taking money from the bank and returning the money later. It also has this advantage. If a person controls his expenses and uses the card only when necessary, then a credit card can prove to be useful, and for a person who spends wastefully and takes unnecessary loans, it can cause problems and debt.

[o48o]

The use of credit cards for me is unwise. You are spending money that’s not even yours yet. How sure are you that you can pay for everything you are buying now? No matter how good your source of income is, nothing is permanent. Credit cards only force you to spend more than what you can. Agreed?

I don't think that we have credit cards in Nigeria, I only used to hear about it on the news about how people spend money that they are yet to earn through credit cards and I used to envy people in countries that allowed it. I later realized that it made us who don't have it to be forced to spend only what we can afford and that is why cash and carry businesses are many in Nigeria. Even if we have credit cards in Nigeria, it's not popular but the latest trend is Fintech banks and loan apps that are offering loans to everybody, their adverts are annoyingly everywhere.

Unfortunately people just take loans for unnecessary expenses like buying a new shoe to attend a party or just to have a drink with friends, there is nothing wrong if you can comfortably repay it but some will borrow just because there is somewhere to borrow it. I don't know how people get indebted in credit cards but I know a couple of people who are always broke after repaying their loans.

In poor regions, is just impractical to use those, even though they exist. It's near impossible to get a credit card with very low income even in first world countries and that very low income in first world countries can be considered to be high compared to poor regions.

And yeah, they have their use, if you find yourself in a situation where you don't have any cash for some reason, and you need it immediately.

Other good use case for it is rare, but have saved ton of money from people. That's if you buy something from online, and before you get the item, that shop declares bankruptcy. If you use money / debit card, you lose your money and don't get anything from there. If you have bought it with a credit card, you will get that money back. And depending what's the value of the item is, is how much you saved.

But there's a danger that if you buy something expensive and lose your job. You might end up being being in debt way more then you planned, and how are you going to dig yourself up from that, when debt just decreases faster then you can pay it back?

[WillyAp]

In poor regions, is just impractical to use those, even though they exist. It's near impossible to get a credit card with very low income even in first world countries and that very low income in first world countries can be considered to be high compared to poor regions.

Every poor region has wealthy people.
What most people don't know is to build a credit history banks use that data of your credit card.
You wish to get a credit it is wise to give the bank something to play with.
Saving money at all cost is anything but wise.

[2stout]

If you are disciplined, consistent, and know what you're doing, they can be very wise.  For example, if you fly a lot, an airline miles card can earn you free flights worth substantially more than the small annual fee, if there is one.  Some people like cash back or other rewards, so look into a cards that fit what rewards you like and also consider if there is no fee, a one time fee, or annual fee to see if it's worth it.  

But the key thing is to treat purchases as cash transactions, meaning after charging, you pay your balance off to avoid debt accumulation and interest.  By doing so, you getting more out of your cash while avoiding the debt and interest trap.

Also, if you do have debt, another thing to consider is balance transfers.  Sometimes the credit cards companies offer great promotional rates that allow you to pay your debt off faster while saving money at the same time.

[Rabata]

The use of credit cards for me is unwise. You are spending money that’s not even yours yet. How sure are you that you can pay for everything you are buying now? No matter how good your source of income is, nothing is permanent. Credit cards only force you to spend more than what you can. Agreed?

Credit cards allow a person to use more money than his income. This may be a positive aspect for some, but for those who can review it well, this credit card is a big debt trap. It makes a person more inclined to spend more. Even if your income does not increase, it will create a proper opportunity for you to spend. You will have to spend unnecessarily and burden yourself with debt. As a result, the amount of debt of a person will gradually increase. Using credit cards is good for those who can avoid unnecessary expenses. It is not the case that you have to use that money just because you have money. Those who have control over this matter will benefit more.

[Mahiyammahi]

If everyone did what I did with cc's they would need to change rules for them.

And in fact they have made them not as good as they were for me.

I think sometimes circumstances matter also how well the cc system jn your region. As for my country jf I goes to purchase anything it's charging the full amount in CC but if I were to give cash for that same product usually I would have got 5/6% discount than regular price which is killing the way of using Cc.

If you don't care about this discount but still willing to purchase from cc than it's good as well , also depends how much you're spending over the month.

[MRY]

The use of credit cards for me is unwise. You are spending money that’s not even yours yet. How sure are you that you can pay for everything you are buying now? No matter how good your source of income is, nothing is permanent. Credit cards only force you to spend more than what you can. Agreed?

Credit cards allow a person to use more money than his income. This may be a positive aspect for some, but for those who can review it well, this credit card is a big debt trap. It makes a person more inclined to spend more. Even if your income does not increase, it will create a proper opportunity for you to spend. You will have to spend unnecessarily and burden yourself with debt. As a result, the amount of debt of a person will gradually increase. Using credit cards is good for those who can avoid unnecessary expenses. It is not the case that you have to use that money just because you have money. Those who have control over this matter will benefit more.

Credit cards when in possession can prove to be of great advantage provided you use them well. But they can prove to be harmful when you do not exercise discipline in spending money. Are not easily fooled by unnecessary shopping promotions. Cash is better than taking the debt in the future and you will burdened.

[TheUltraElite]

The question is being asked whether it is wise to use a credit card or not.

OP is assuming that we are all heavy spenders and if given a credit card we will cannibalize on the credit limit. This is the wrong way to approach the credit cards. Limit your spending to things you need and use the credit card for big purchases when needed, mostly electronics, cars and furniture. Dont use it for everyday spendings like bills, groceries and random errands.

I like to use the EMI systems on credit card and maintain balance in my bank account to not miss a single repayment once an EMI is initiated and also limit to 1max EMI at any time in a year.

These are disciplines that one needs to maintain and then they will be able to generate some cashback and some points on premium cards.

[Grace333]

Depends on the country you are resident of, your wealth, your plans. If you want to build trust with bank - use credit cards, even though you have enough funds. Some use cards to divide financial load on a person. There are people who use credit cards only to get bonuses (for example people get exclusive discounts, I used to receive movie tickets each quarter for having a card). Sure enough there are people who want to have more than they can allow, and they become infinite debtors.

I won't say it's fully dependent on the country the person is residing, the country has little to no effect on the persons decision on how yo use his or her credit card. Well from your post it tells that you're not one of those people who thinks credit cards are banks gift to give them overall comfort with little interest. The moment folks begin to think like this it's positive they might end up borrowing more than they can pay before the elapsed due date. Any offer coming from a bank I'm very cautious in examining them before I accept ot reject because no matter how beneficial it may be to you, banks would always benefit more most especially when you fail to meet their terms.

[puloweh555]

The use of credit cards for me is unwise. You are spending money that’s not even yours yet. How sure are you that you can pay for everything you are buying now? No matter how good your source of income is, nothing is permanent. Credit cards only force you to spend more than what you can. Agreed?

Credit cards allow a person to use more money than his income. This may be a positive aspect for some, but for those who can review it well, this credit card is a big debt trap. It makes a person more inclined to spend more. Even if your income does not increase, it will create a proper opportunity for you to spend. You will have to spend unnecessarily and burden yourself with debt. As a result, the amount of debt of a person will gradually increase. Using credit cards is good for those who can avoid unnecessary expenses. It is not the case that you have to use that money just because you have money. Those who have control over this matter will benefit more.

Credit cards when in possession can prove to be of great advantage provided you use them well. But they can prove to be harmful when you do not exercise discipline in spending money. Are not easily fooled by unnecessary shopping promotions. Cash is better than taking the debt in the future and you will burdened.

In essence having a credit card can make you spend more not because of the card itself but because you can't control how you use it and are easily tempted by rewards, promotions or cashback. We're often tempted to spend a lot to get points or discounts, but without realizing it our total expenses increase.

However on the other hand credit cards can be beneficial. You can shop for essentials before you get paid and pay them off when you get paid and you can save money when you really need it, for example through cashback, discounts on tickets, etc. In other words many people use them wisely.

Essentially, this comes down to personal character because only we can truly judge ourselves. A credit card is like a knife it can cook deliciously or hurt, depending on how you use it. If you feel disciplined a credit card might be beneficial. But if you lack discipline and self control it can wreak havoc on your finances.

[Findingnemo]

Depends on the country you are resident of, your wealth, your plans. If you want to build trust with bank - use credit cards, even though you have enough funds. Some use cards to divide financial load on a person. There are people who use credit cards only to get bonuses (for example people get exclusive discounts, I used to receive movie tickets each quarter for having a card). Sure enough there are people who want to have more than they can allow, and they become infinite debtors.

I won't say it's fully dependent on the country the person is residing, the country has little to no effect on the persons decision on how yo use his or her credit card. Well from your post it tells that you're not one of those people who thinks credit cards are banks gift to give them overall comfort with little interest. The moment folks begin to think like this it's positive they might end up borrowing more than they can pay before the elapsed due date. Any offer coming from a bank I'm very cautious in examining them before I accept ot reject because no matter how beneficial it may be to you, banks would always benefit more most especially when you fail to meet their terms.

Credit card is not an evil thing, and to tell the fact this is the easiest way to get a loan with a lower interest rate means the good credit history will help us to get better credit with easier paperwork and a lower interest rate. Those decimals look negligible for an average user but it really make a difference and can even save hundreds of thousands of dollars at the end of tenure.

Only thing we need to keep in mind, it is not free money but an esier loan that should be paid at the end of the cycle.

[Fortify]

The use of credit cards for me is unwise. You are spending money that’s not even yours yet. How sure are you that you can pay for everything you are buying now? No matter how good your source of income is, nothing is permanent. Credit cards only force you to spend more than what you can. Agreed?

Credit cards are a super helpful tool for someone who has their finances under controls and understands how it should be used. All of the people who have no money, go into debt and pay high interest rates are the profitable customers to credit card companies - don't be that type of card user. You should only put the amount that you can afford to pay off by the next statement on the card, but they can be used in very extreme cases as a way to cover unexpected events (like a boiler breaking) if you have no other savings. They absolutely do not force you to spend more, it's completely under the control of the card holder to only spend what they can afford, please stop perpetuating that myth.

[eightdots]

The use of credit cards for me is unwise. You are spending money that’s not even yours yet. How sure are you that you can pay for everything you are buying now? No matter how good your source of income is, nothing is permanent. Credit cards only force you to spend more than what you can. Agreed?

Credit cards are a super helpful tool for someone who has their finances under controls and understands how it should be used. All of the people who have no money, go into debt and pay high interest rates are the profitable customers to credit card companies - don't be that type of card user. You should only put the amount that you can afford to pay off by the next statement on the card, but they can be used in very extreme cases as a way to cover unexpected events (like a boiler breaking) if you have no other savings. They absolutely do not force you to spend more, it's completely under the control of the card holder to only spend what they can afford, please stop perpetuating that myth.

Credit cards can be considered beneficial or harmful depending on how they are used. The important point is whether the person is using their credit card in a beneficial way. If they are controlling their spending, there is no harm, but those who spend as if they will never have to pay back are making a mistake.

Credit cards can give people spending freedom, but they should know that they will have to pay back that debt. How they are used is an indicator of whether credit cards are beneficial or not.

[Furious 7]

Just like the OP said, nothing is permanent and we shouldn't overlook the fact that the table can turn anytime without our awareness, so it's really important to avoid anything that will make you bankrupt.

Credit card will make you bankrupt if you are reckless with spending from it. There are some no-no in credit card world and these should be carefully followed, like paying back the total amount due on time and not withdrawing cash from ATM using credit cards. Going close to your limit means you are spending more than what you need, look back at your costs and try to find out what are the things you dont need to buy but can live without.

Still if you feel credit cards will bring in more mess in your life, avoid them altogether. They should be used by people who have their lives more or less sorted and are alert about paying back in time.

I was once in this situation when I was still at an unstable age even though I was old enough to try a credit card with the intention of trying and being stylish but instead it left me confused with the bills that I had to settle afterwards.
Reflecting on the past, now I don't want to try again to activate a credit card because even though everything looks easy and we can do anything as long as the limit is still there, the risk at the end is much scarier than it looks.

The initial function is indeed seen as a convenience for us to transact but when this is not accompanied by maturity and logical thinking then this kind of convenience actually makes us trapped and I have felt this which ended with my favorite object having to be sold to pay off the final bill.

[bhadz]

We can view that differently, I am not using credit cards but in desperate times they're like a friend. You only have to know when to use it and not  that time to time you'll swipe that and spend it as if it's your money. It's right that it's not your money per se and you'll have to pay for that. And that's why every time you use it, you'll need to pay the full amount and not the minimum of it so that you won't be charged and will be seen as good and responsible payers by the issuing bank of your credit card. Just use it wisely.