Are Credit cards wise?

[EFS]

As long as we have the money, why use a credit card? That's the question on my mind.

Basically to get free money. I guess you didn't even bother reading replies on the thread.

You pay for something you buy today 30-40 days later. In the meantime, the money that's already yours keeps earning interest for you.
You can also split purchases into installments. So instead of paying your debt right away, you keep earning interest on your money.
You earn bonus money from the card that can be used in your next purchase. You benefit from different campaigns. All of these give you a financial advantage.

You're asking the wrong question. If you have money, of course you use a credit card. The real trap is when you don't have money and still use a credit card.

[terrific]

As long as we have the money, why use a credit card? That's the question on my mind.

Usually when we have a credit card then we will find it difficult to control our spending. I'm not saying that because I have a credit card, but I have a credit on a shopping app that allows me to pay later. Honestly, it's hard for me to control it, because when I see something and I want it, then I will buy it even though it's not important. From there I realized that it was not good for my finances.

It is in the person's mind that they have difficulty in handling their finances and that includes debt control.
That's through the usage of the credit cards and it's a fact that we see from others that they're having a hard time controlling theirs.
Discipline is a must when you own one and from your own experience, it's not only you that struggles to that urge that you want to spend more because you have that credit card that you can use based on your spending limits.

[fruktik]

I don't really think it's good to use a credit card it's more like a luxury in my opinion. It only looks good because it's cashless and keeps you safe from snatching or theft. However, when the bill starts coming in, that's when we feel the suffering.

Also, it's not really good because it just puts us into debt, since we end up spending borrowed money on things that aren't really that important. And you'll always be vulnerable to tempting situations surely, in the end, it will lead to trouble.

In my country, more than half the population has bank loans. This is a fairly high percentage, indicating that the country is impoverished and poor. People are forced to resort to this option to somehow eke out a living. And you know what? The situation is only getting worse. Banks have even begun to limit the issuance of loans and cards, as this creates a dangerous situation for the economy. I don't think people take out loans only to finance surpluses.

[batang_bitcoin]

In my country, more than half the population has bank loans. This is a fairly high percentage, indicating that the country is impoverished and poor. People are forced to resort to this option to somehow eke out a living. And you know what? The situation is only getting worse. Banks have even begun to limit the issuance of loans and cards, as this creates a dangerous situation for the economy. I don't think people take out loans only to finance surpluses.

People take loans because they don't have cash or they don't want to spend their own money. Remember the 2009 collapse of the US economy about Lehman brothers. There are a lot of credits that were never paid and collected. But if it's just an individual's thought about usage of credit cards. In the times of needs, they're helpful when no one else would give you some money for those emergencies. That's only one of the many use of the credit cards. People mock the owners of the credit cards because they think that they're broke. Not everyone who owns but there are responsible and wise credit card owners that uses its maximum potential and usage.

[DrBeer]

As long as we have the money, why use a credit card? That's the question on my mind.

Basically to get free money. I guess you didn't even bother reading replies on the thread.

You pay for something you buy today 30-40 days later. In the meantime, the money that's already yours keeps earning interest for you.
You can also split purchases into installments. So instead of paying your debt right away, you keep earning interest on your money.
You earn bonus money from the card that can be used in your next purchase. You benefit from different campaigns. All of these give you a financial advantage.

You're asking the wrong question. If you have money, of course you use a credit card. The real trap is when you don't have money and still use a credit card.

I can't say for sure that this is the case in all countries and all banks, but in my country, it's worth adding that using credit cards for regular payments (food, utilities, gas, etc.) brings good cashback and discounts. These range from 1% to 10% of the payment amount, or discounts of a similar level.
To understand the benefits, you need to understand how banking systems work and why it is profitable for them to make it profitable for us! For conspiracy theorists, this sounds crazy, but it is profitable for banks to move money around and not profitable for money to sit idle in your accounts.
 
Incidentally, the ability to purchase goods in installments without interest has a very positive effect on domestic sales, which in turn has a positive impact on many people whose income is linked to the production and sale of goods. If a buyer cannot purchase your goods, then you will also encounter problems. If the bank assists the buyer in purchasing your goods, then the bank is also assisting you.

[tottong]

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 see a pressing need to use a credit card because there are other solutions people can use when dealing with banking.
I simply avoid things that aren't absolutely necessary because there's no benefit to forcing myself to use a credit card. It's like going into debt because the bill will be automatically deducted at the end of the month, and I don't think it's wise to use a credit card for my current needs.

Others may view this based on their needs, but personally, I prefer using an ATM card because it's more right on target for current I needs, according to the money we have in it. Most importantly, it's about managing that money so it's not overused on unnecessary expenses.

[maknyos]

As long as we have the money, why use a credit card? That's the question on my mind.

Basically to get free money. I guess you didn't even bother reading replies on the thread.

You pay for something you buy today 30-40 days later. In the meantime, the money that's already yours keeps earning interest for you.
You can also split purchases into installments. So instead of paying your debt right away, you keep earning interest on your money.
You earn bonus money from the card that can be used in your next purchase. You benefit from different campaigns. All of these give you a financial advantage.

You're asking the wrong question. If you have money, of course you use a credit card. The real trap is when you don't have money and still use a credit card.

I can understand what you mean. When we have money, we can use that money to generate profit for us, while we use credit cards to buy things.
Basically it makes sense, but not everyone is responsible with their credit card usage and debt is debt.
Maybe this is a difference in principle between each of us, because I have a principle that we should not create debt as long as we can still buy with our own money (except in urgent circumstances). Because debt can also become a habit and maybe even an addiction.

[Jatiluhung]

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 can sometimes be an emergency solution or a solution in urgent situations. However, I personally don't really like credit cards. This is because, despite their benefits and convenience, they can sometimes lead people to spend more money than they have budgeted.
A debit card is more than sufficient for me. I prefer to buy only when I can afford it, and I dislike all the “pay later” or installment features that can create financial burdens in the future. Credit cards may be more suitable for those who no longer think about their daily or monthly expenses because they are wealthy people whose money is difficult to count. For them, credit cards are very useful. But for ordinary people like me, I don't want them at all. Because I am more afraid of their convenience, which can change my shopping habits.

[Jateng]

Credit cards aren’t the problem, people using them badly are, if you treat it like a debit card and pay the full balance every month, it’s just a tool it helps with online payments, building credit history, and sometimes you get buyer protection. The trouble starts when folks think the limit is free money.

Credit cards themselves are not bad; the real problem is how people use them. When people misused it, they can easily lead to debt, but when used wisely, they can be very helpful. credit card is just a tool,it can be beneficial or dangerous depending on the person using it. credit cards are useful not only in emergencies but also for smart planning. during big sales or discount seasons, a credit card allows you to buy needed items even if you don’t have extra cash at the moment. It helps me manage my expenses and enjoy the benefits without financial stress

[Livingleged]

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 as much as I will not be in support of people spending money with credit card I still think it’s help one solve immediate needs without bothering any one and repay when you are back to stability.  Every individual have a time that might be though so this insensitive are measure to help take care of those kind of situation’s Although some people may want to abuse the system but what ever you do is having a direct relationship with you sources of income because at the end of the day you are definitely paying back those funds spent with the credit card.

[God Of Thunder]

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?

Well, sometimes it helps you in an emergency. But in most cases, people do not use a credit card for emergency purposes, but they use it to buy luxury products that they cannot even afford. I know for a fact that most people in developed countries are in debt due to massive usage of credit card. They do not own the money, but they do have free access to buy anything if they want. The banks allow them to buy anything, and then charge the fees later.

I am glad that I do not have credit cards. I use prepaid cards that I load with my own money, and I spend it when I need to. So, I am basically spending my own money. I am glad that I am not in debt, but I do have some savings even though it is tiny.

[imthegreat]

Credit cards aren’t the problem, people using them badly are, if you treat it like a debit card and pay the full balance every month, it’s just a tool it helps with online payments, building credit history, and sometimes you get buyer protection. The trouble starts when folks think the limit is free money.

Credit cards themselves are not bad; the real problem is how people use them. When people misused it, they can easily lead to debt, but when used wisely, they can be very helpful. credit card is just a tool,it can be beneficial or dangerous depending on the person using it. credit cards are useful not only in emergencies but also for smart planning. during big sales or discount seasons, a credit card allows you to buy needed items even if you don’t have extra cash at the moment. It helps me manage my expenses and enjoy the benefits without financial stress

Absolutely right, and it's similar to the interpretation of guns, where they say it's not the gun itself that kills, but the person who pulls the trigger. I'd say the same thing about credit cards. If they fall into the hands of a stupid person, they'll naturally borrow even more than they already have.

But if they fall into the hands of a smart person, they'll have
two choices: either refuse the opportunity, or use it carefully, taking into account some financial basis or strategy, and profit from the financial opportunity the banks have provided.

[DrBeer]

Credit cards aren’t the problem, people using them badly are, if you treat it like a debit card and pay the full balance every month, it’s just a tool it helps with online payments, building credit history, and sometimes you get buyer protection. The trouble starts when folks think the limit is free money.

Credit cards themselves are not bad; the real problem is how people use them. When people misused it, they can easily lead to debt, but when used wisely, they can be very helpful. credit card is just a tool,it can be beneficial or dangerous depending on the person using it. credit cards are useful not only in emergencies but also for smart planning. during big sales or discount seasons, a credit card allows you to buy needed items even if you don’t have extra cash at the moment. It helps me manage my expenses and enjoy the benefits without financial stress

Absolutely right, and it's similar to the interpretation of guns, where they say it's not the gun itself that kills, but the person who pulls the trigger. I'd say the same thing about credit cards. If they fall into the hands of a stupid person, they'll naturally borrow even more than they already have.

But if they fall into the hands of a smart person, they'll have
two choices: either refuse the opportunity, or use it carefully, taking into account some financial basis or strategy, and profit from the financial opportunity the banks have provided.

A very accurate observation, and most importantly, an honest one!
Many people simply lack the willpower and courage to admit that they are responsible for their own foolish actions. This also applies to credit card use. A classic situation is when a credit card holder who has no income or an acceptable level of income decides that he urgently needs to buy, for example, the latest iPhone with all the bells and whistles. Why? Well... because HE WANTS IT, and he wants to look better than he really is. So he buys it with his credit card, and then... THE BANK IS TO BLAME FOR HIS DEBTS, FOR EVERYTHING
And in general, if you look at the history of humanity, we do a huge number of idiotic things, and we use useful and effective tools for completely opposite tasks... And then we suffer and look for someone to blame

[devlin85]

As long as we have the money, why use a credit card? That's the question on my mind.

Basically to get free money. I guess you didn't even bother reading replies on the thread.

You pay for something you buy today 30-40 days later. In the meantime, the money that's already yours keeps earning interest for you.
You can also split purchases into installments. So instead of paying your debt right away, you keep earning interest on your money.
You earn bonus money from the card that can be used in your next purchase. You benefit from different campaigns. All of these give you a financial advantage.

You're asking the wrong question. If you have money, of course you use a credit card. The real trap is when you don't have money and still use a credit card.

Exactly, the smartest way to use credit cards is when you already have money. Many people still do not know the advantages of using them as a financial tool; they can be used for protections, credit history, and rewards. If used properly, they are a very useful instrument.

[lornadane]

As long as we have the money, why use a credit card? That's the question on my mind.

Basically to get free money. I guess you didn't even bother reading replies on the thread.

You pay for something you buy today 30-40 days later. In the meantime, the money that's already yours keeps earning interest for you.
You can also split purchases into installments. So instead of paying your debt right away, you keep earning interest on your money.
You earn bonus money from the card that can be used in your next purchase. You benefit from different campaigns. All of these give you a financial advantage.

You're asking the wrong question. If you have money, of course you use a credit card. The real trap is when you don't have money and still use a credit card.

Exactly, the smartest way to use credit cards is when you already have money. Many people still do not know the advantages of using them as a financial tool; they can be used for protections, credit history, and rewards. If used properly, they are a very useful instrument.

If you already have the cash, a credit card becomes a tool, not a trap:

• buyer protection & chargebacks
  build credit history
  rewards/cashback

short-term liquidity w/o interest (if paid on time)

[barisbilgili]

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 see a pressing need to use a credit card because there are other solutions people can use when dealing with banking.
I simply avoid things that aren't absolutely necessary because there's no benefit to forcing myself to use a credit card. It's like going into debt because the bill will be automatically deducted at the end of the month, and I don't think it's wise to use a credit card for my current needs.

Others may view this based on their needs, but personally, I prefer using an ATM card because it's more right on target for current I needs, according to the money we have in it. Most importantly, it's about managing that money so it's not overused on unnecessary expenses.

If you feel that way then I think there is nothing wrong with that, but what we need to understand is that everyone has a different life and desires. I see that there are people who need a credit card for their convenience, even though it is difficult, but someone who can be responsible for it, I think it is not a problem.

[summonerrk]

Snip

Many people who consider themselves smart use credit cards as an "opportunity," for example, to start a business, as banks position it. But this can be seen as a step toward a very risky venture, which many aspiring entrepreneurs don't fully understand. After all, that's what they're aspiring for. In the country where I live, banks offer 20 percent annual interest on business development loans. That's bad deal.
And if a novice user of such a credit card fails to do everything correctly, they'll become a major debtor to the bank.

[lornadane]

Snip

Many people who consider themselves smart use credit cards as an "opportunity," for example, to start a business, as banks position it. But this can be seen as a step toward a very risky venture, which many aspiring entrepreneurs don't fully understand. After all, that's what they're aspiring for. In the country where I live, banks offer 20 percent annual interest on business development loans. That's bad deal.
And if a novice user of such a credit card fails to do everything correctly, they'll become a major debtor to the bank.

For someone new to business, jumping into debt without experience is dangerous. In many places, including where you live, 20 percent annual interest on business loans is wild. That’s not support, that’s pressure. Your business has to perform almost perfectly just to stay afloat, let alone grow.

[goldkingcoiner]

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 definitely agree that with credit cards you spend more than what you expected.

It does not feel like you are losing something, it's just a card with a number. You keep thinking you can just pay them back and "take the easy way" for now by buying something with someone elses money. It could become a bad habit. The "paying back" part can make life very difficult.

[Bitcoin Smith]

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 definitely agree that with credit cards you spend more than what you expected.

It does not feel like you are losing something, it's just a card with a number. You keep thinking you can just pay them back and "take the easy way" for now by buying something with someone elses money. It could become a bad habit. The "paying back" part can make life very difficult.

This is the con of being turning into cashless economy, be it card, digital payment we might not have the same kind of feel like spending the hard cash so it is our responsibility to adapt the changes. I have never missed the credit card payments because I know it will make a dent on by credit score, so even if we fell short better take other loans like personal loan and pay the credit card bill and just promise yourself that never going to use the credit card unless I got the balance in my bank account.