Are Credit cards wise?

[asriloni]

Totally depend on yours. If you can spend your credit card for the productive purpose, you're good. If you do that for the consumptive purpose, you will rekt. That's why the key is to use it wisely.

Using credit card is pretty much the same like you're spending the money you borrow from the bank. If you're using for the good, it can give you more.

So, in the end, it's all yours.

[leonair]

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 help us a lot in various ways in times of emergency. But credit cards always lead us to spend extra money. Since we do not have to pay any money instantly when we use a credit card to process something, we do not hesitate to spend more than necessary. If we can control our spending, then using a credit card is a wise thing to do and it makes the financial aspect easier. However, if we cannot control ourselves, then using a credit card will be foolish.

[wiss19]

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 guess that credit card's interest rate and interest-free period kind of credit card related things are not same for all the countries. With respect to my country, I can make use of credit card to enjoy no-interest loan for more than a month of time. Like, I can purchase all my monthly needs using my credit card and settled my credit card bill by first week of next month once my salary hits my bank account. It means, I guess that I am safely making use of credit card to get advances and more importantly I am not paying any interest for my loan.

But, all the advances that I am getting is only for very short period of time and I must watch my spending because my spending limit should be within my salary. Credit cards are good for emergency needs and always having control will help.

[yhiaali3]

I can liken having a credit card to a woman entering a very large supermarket and starting to buy things she needs and doesn't need because she can't resist the temptation to buy.

It's the same with credit cards; if you don't have self-control, you'll end up defaulting on payments and incurring interest charges on the outstanding balance.

[Hispo]

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 personally agree. I have always tried to avoid acquiring credit if possible, and I have this mindset in which credit is supposed to be only in cases of emergency.
I do not get who there are so many people who live off their credit cards and carry debt perpetually.

Credit cards used to be tools to be used in emergencies, when one was not able to afford to reach end of the month, but I have seen so many people on the internet (specially from north America), who cannot spend a single day without swiping their credit cards; to eat, to get presents, to pay for gasoline and to keep an artificial life style which is unsustainable.

[Stalker22]

If you do not have confidence in your discipline, then using a credit card can be an easy way to spend money that you dont have; therefore, in your case, the best course of action would be to avoid them altogether and use cash or debit cards only.

My opinion differs from yours that suggests all credit cards are bad or force you into spending money beyond the means you have available to be able to pay for it immediately.  You are only forced into that position when you carry a balance from one month to the next.  If you treat your credit card in the same manner as a debit card and spend only what you have in your account, then you will never incur any interest on your credit card balance.  In addition, buying items with a credit card will give you with far greater consumer protections against fraud compared to paying with either debit card or cash.

A credit card is merely a method that is used by an individual.  It is ultimately up to the user of the credit card to be responsible for their actions; the card itself does not create any issues for anyone other than the user.

[GigaBit]

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?

In reality, there is no end to human needs in this worldly life. People will constantly feel a lack of something or the other and to fill that lack, they do not hesitate to take loans if necessary. By using a normal credit card, even if a person does not have the purchasing power, he gets the opportunity to use his card to purchase something, but for this he has to spend more money later. I think if there is cash, then it is better to buy something to meet the need, but not to buy anything on loan or using card. Increasing expenses is a burden for everyone.

[Darker45]

Strictly speaking, you're indeed spending money that's not yours. But it doesn't mean you can't afford it. It's just that you're using the card for convenience's sake or perhaps for points, discounts, cashbacks, and whatnot. But you have the money to pay for what you're buying.

I'm not a fan of credit cards, either. I don't have one. I'm using debit. But I'm sure there are certain perks and benefits in using one.

I get your point, though. Credit cards aren't for everyone. It's for those who have the discipline.

[philipma1957]

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 have used CC SINCE THE 1980's

I have charged over 1 million on them.

I have paid under 1000 dollars to do that.

I have earned 50,000 dollars in bonuses on them.

So I am up over 40,000 us dollars using them for about 37 years.

[m2017]

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?

There are no "good or bad" financial instruments (like a credit card), but rather the inability to use this instrument to your advantage.

In the wrong hands, a credit card can, of course, become a source of debt, unnecessary card fees, and unnecessary purchases. But everything changes if you use this borrowed money to "generate" new money, for example, for a business (for example, emergency financing of unexpected expenses with a credit card, allowing the business to operate). In other words, using "other people's" money for a small fee, you "create" money for yourself. Is that bad?

With the right approach, even credit cards are wise.

[AmaGold70]

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?

Spending too much money as nothing to do with your credit card but rather you lack self control and credit cards isn't your problem but you are, I have credit cards but I don't really use them because I always have my phone with me to make money transfer if I want to buy something. There are people that actually can't help with when they have the credit card so it's better to avoid it completely because credit cards are future money and some people no matter how much they try they can't overcome the temptation of spending recklessly with credit cards but I've had mine for a while long time now but always have my debit card with me.

[crwth]

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?

That's the thing, you need to be disciplined in your usage of this because it's not magic. You need to know what you can afford, but still have the flexibility of using it when needed.

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 disagree that credit cards "force" you to spend. That's just a person problem. If you can't control your spending, don't get a credit card. If you can, you use one. It's that simple.

[Hanadawa]

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 get your point OP, but don’t you think it depends on the person? Some people are disciplined and pay full balance every month. I’m curious if you’ve had a bad experience with credit cards yourself. Would be interesting to hear real cases from this thread.

I often use my credit card to pay suppliers when there's a promotion or discount. I buy more than usual and then sell it to people. I've also purchased new equipment for my office to improve my business efficiency. And at the end of the month, I'm able to pay my credit card bill from the revenue I generate. Essentially, if you use your credit card for productive purposes, I don't think it's a problem. Yes, a credit card is almost like a bank loan, but you can use it anytime. One thing to note: When using a credit card, I really make sure I really need the item or can I wait. I set a two or three day window to think about it. If it turns out I don't really need it, I'll postpone it and buy it when I have the cash. But if I consistently remember it within three days, it means I really need it. And I'll buy it.

[viljy]

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?

No. For most people, this is already a habit. Also, if a person manages to repay the debt before the end of the interest-free period, then he does not lose anything. Although now banks are already monitoring the cunning customers. (These people took money from a credit card and deposited it in a bank deposit, for example, for 90 days, while the interest-free period of the credit card was 120 days, receiving% from the bank at the expense of the money of the same bank). Also, do not forget that people have been accustomed to credit cards and loans in general for many decades. They were taught that there is no life without loans at all.

[Oluwa-btc]

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?

Its clearly not but rather it's sarving to the demands of people that makes it their top criteria, for you having a credit card can be unwise and would trigger unnecessary spendings but for some person's it's something that's faster and makes it easier to get what they desire in a jiffy. And again it's self discipline that matters in this situation cause if you can control yourself not to go beyond your expected spendings then you have nothing to worry about.

[goro_chief]

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 fully agree. The problem isn’t the card, it’s behavior. Plenty of people use credit cards responsibly and never pay interest. Saying they’re unwise for everyone ignores personal discipline and financial literacy

[Findingnemo]

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?

You have the ability to spend with a credit card which doesn't mean you should. Keep the money in your bank and use credit cards to purchase and when there is bill date just pay the bill amount. Credit cards offer protection from online scams, you can report unauthorized transactions, and banks hold 100% responsibility, so you will not lose anything and there are cashbacks with cards. So if you use it wisely then it can help you to build your credit line.

[libert19]

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 have used CC SINCE THE 1980's

I have charged over 1 million on them.

I have paid under 1000 dollars to do that.

I have earned 50,000 dollars in bonuses on them.

So I am up over 40,000 us dollars using them for about 37 years.

Now, this says much, and this is a comment people should be reading — If one is careful with CC's they can be profitable. I wonder though, did you really keep track of how much you spent using 'em all this years and bonuses earned as you are making it sound?

[abhiseshakana]

Credit is merely a tool, not a purpose, so the problem isn't the credit itself; what's dangerous is non-productive consumer behavior. Credit creates the illusion of purchasing power. Psychologically, credit cards reduce the sense of urgency, making people feel more capable than they actually are, and spending is driven by emotion, not calculation. This leads to people consuming for the future today, their future income being eaten away by installments, and financial flexibility being lost.

I'm campaigning to reduce credit for desires, not because I'm anti-growth. Rather, I hope for an improvement in the quality of economic growth through real income, savings, and productive investments, not debt-driven consumption. A strong economy is built on disciplined consumption today, so that the future isn't burdened by debt.

I will only use a credit card if I have a balance equal to the amount I spend to pay in full each month, I pay it in full each month, I have an emergency fund, and I use it for necessities or cash flow efficiency, not to support a lifestyle. Credit cards become a danger signal when they are routinely used for desires, minimum payments become a habit, they are used to cover income deficits, and they become a status symbol.

[demonica]

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?

The problem is not the credit card. It's always the users. Credit card is actually a powerful to if you know how to use it wisely.
If you have a credit card, it doesn't mean you have unlimited money to spend on everything. If you know how to use credit card smartly, you can actually save a lot... There are a lot of perks for credit card users with their points. Some can even upgrade their seats on plane with their credit card without spending anything. Also, having a good credit score is also a great thing.

Credit cards can't force you to spend more. How can a card force it's users to spend? It's your own self making you buy stuff just because you know you have a credit card even without thinking if you can actually pay for it.