Topic: using credit card - page 5. (Read 842 times)

i am weak at economy, is it wise decision to use credit card?

OP, NEVER USE YOUR CREDIT CARD FOR "SMALL PURCHASES", ESPECIALLY FOR UNIMPORTANT PURCHASES.

For emergencies yes, and for IMPORTANT large purchases for items/things that you truly need, like a laptop to use to be more productive and earn money, or an item that you can use to start a small business = definitely yes.

i am studying in college, i was really excited to get my first credit card . i thought it will give me a sense of independence and allow me to buy things i could not afford with cash.

though, i quickly learned that credit cards can be a double edged sword. while they can be helpful in building credit, they can also lead to debt and financial trouble if not used responsibly.

at first, i used my credit card reasonably, only for like emergencies or small purchases that i knew i could pay off in full each month. but as time went on, i began using it more and more for larger purchases and impulse buys, without really thinking about how i would pay the balance off.

before i knew it, my credit card balance had  blown up to several thousand dollars, and i was struggling to make the minimum payments each month. the interest charges alone were eating up a significant portion of my income, and i felt like i was going under debt.

To your point -- all credit card companies make their money off of late fees and interest. If people aren't responsible to limit their purchases to within their means, a credit card isn't worth it.

Yes I actually hear this a lot and some of it becomes trouble. Friend of mine or family of mine had the same issue too one of them ask me to loan some money by using my name but I only help the closes friend and limited amount because it will be dangerous if person run away

i am studying in college, i was really excited to get my first credit card . i thought it will give me a sense of independence and allow me to buy things i could not afford with cash.

i am weak at economy, is it wise decision to use credit card?

Yes some credits are good as long as you can pay for it. I have a someone I knew that her addiction is to take out a loan, she even uses our name just for her to take a loan, and those sharks are invading our privacy. If money from credit or loans are being used to investment or to repay other credits then I think there's no wrong about it. Again, it is okay to have credit card as long as you can for it and you are a good credit payer.

I do agree with you about two sides of blade credit card can be helpful if you can control it but also can be dangerous if you can't control it.

But personally, I need to stay away from credit when Im low on budget or at least I don't really need to buy useful things. So it is always good to use regular debit card with your own money than loan to someone else.

But recently CNBC made a video about - Why You Should Buy Everything With Credit Cards - https://www.youtube.com/watch?v=SnBu2_l_sZ0

You definitely should avoid credit cards unless you're in good control of your finances and spending, because they are designed to be very expensive forms of debt if you don't use them correctly. They can be very useful to extend you credit, but you should only use them if you can pay the debt off every single month and not keep a rolling balance. Compared to loans they can often charge in excess of 20% per year, versus loans which you might be able to get in the 5-10% range. The people who use them sensibly are basically borrowing short term and paying it off without interest, the people who don't pay it off make these credit card companies vast amounts of profits.

i am studying in college, i was really excited to get my first credit card . i thought it will give me a sense of independence and allow me to buy things i could not afford with cash.

though, i quickly learned that credit cards can be a double edged sword. while they can be helpful in building credit, they can also lead to debt and financial trouble if not used responsibly.

at first, i used my credit card reasonably, only for like emergencies or small purchases that i knew i could pay off in full each month. but as time went on, i began using it more and more for larger purchases and impulse buys, without really thinking about how i would pay the balance off.

before i knew it, my credit card balance had  blown up to several thousand dollars, and i was struggling to make the minimum payments each month. the interest charges alone were eating up a significant portion of my income, and i felt like i was going under debt.

it was not until i sat down and made a budget that i realized just how much my credit card debt was affecting my overall financial health. i had to make some tough choices and cut back on some of my expenses , but finally,
i was able to pay off the balance and get back on track.

the lesson that i learned here is that credit cards can be a valuable tool for building credit points/scores and making purchases, but they should be used responsibly and with caution. it is important to keep track of your spending(like keeping a journal), pay off the balance in full, each month if possible, and avoid carrying a balance that will increase interest over time. by being mindful of your credit card usage, you can avoid debt and maintain your financial health.

i am weak at economy, is it wise decision to use credit card?

No, it is not. The build up credit score thing is another hoax. Credit cards are the product most aggressively marketed by the industry because it is the one that benefits them the most. Starting with you when you are young, financial institutions hope to have you hooked on credit for life, ideally spending beyond your means and paying interest on late fees and the like.

i am weak at economy, is it wise decision to use credit card?