Are Credit Cards Really Evil?
People tend to stay away from credit cards. Most people I’ve talked to regretted even owning a credit card in the first place! But, are credit cards really that evil?
To make things crystal clear – credit cards aren’t evil but credit card debt is. Having the ability to pay for anything without actually having cash on hand is great but you need the discipline to know if you can pay it when your bill arrives.
Credit cards actually do more good than harm.
Credit cards are much more convenient than carrying huge amounts of money at a time. Transactions are fast and easy with these cards. Should I also mention that they are safer than cash? Credit cards usually have strong fraud protection systems. So, it does beat having to be on end 24/7 guarding your cash, right?
It helps you build your credit score.
Credit scores are numbers from 300 to 650 that helps lenders identify who they will lend their money to. If your credit score is high, say around 670 tand above, it is more likely that you will get offers for a wider range of credit cards, greater perks, and faster applications for loans!
All about the perks.
I guess this is one of the best things in owning credit cards – the perks! You can get cash-backs, travel rewards, points and miles. Some banks offer free hotel upgrades, discounts at stores and freebies, of course!
Although all these are nice, you can only enjoy these if you are a responsible credit card holder. You should not purchase things that you cannot pay off. You should also pay your bills on time, and it’s better if you paid it in full. Moreover, you shouldn’t max out your credit cards, these have limits too! It is ideal that you keep your spending limit below 30%. In a way, it also helps you keep your expenses regulated.
There you go! Did I answer your question? Credit cards aren’t innately evil, it will always depend on how you use it! Remember to be responsible and disciplined, especially with your money!