Are credit cards good or bad for you?

Question

What does a person gain or lose when he/she owns a credit card? Is it necessary to own one these days? Who's on the winning end? The bank or the member?

Answer 1

It really depends on how it is used.

We all have times when we really need to borrow money from someone. A credit card helps us avoid embarrassment of borrowing money from friends or relatives. Credit cards are good for smaller purchases. If you do pay on time you can usually avoid the interest charges levied.

Regular and uncontrolled use of credit cards can become addictive and lead you into a debt trap. Its would be very hard to come out of this debt trap once you run up a big outstanding amount while the interest which usually is high just keeps adding up.

For large purchases consumer or personal loans would be better with a lower interest rate.

Answer 2

In terms of gain/lose its a lose of rationale decision making. Before owning a credit card you don't buy, now you do or if not you spend excessive amounts of time wondering if you should. The majority of people who own one will therefore be in debt to larger or smaller degrees. But do you need one, absolutely. Its like a mobile phone, you can't leave home without it. Its the financial band-aid for those emergency situations and everyone needs a spot of retail therapy now and again. And the Bank is THE only winner in the end, if you don't pay off your bill instantly it gets to charge interest, and even if you do pay, watch your mailbox filling up with even more attractive offers.

That said I own 6! Hurragh for me eh.

;-)

Answer 3

With a credit card, a person gains flexibility and some safety. Sometimes you have to have a credit card, such as at car rental agencies. It is not safe to carry around large amounts of cash. It can be stolen and not recovered. With a credit card, you can in effect carry around $10,000 or more. If the card is stolen, you notify the company and you are not liable for losses after notifying the company.
The credit card holder "wins" if he uses his card and pays off the balance every month. Some cards give a small purchase discount, such as 1%.
The bank earns money when you are charged, and pay, interest. The bank is in business to earn money. You pay for the convenience of having a credit card.

Answer 4

It really depends on how it is used.

it is great because, you need not carry money around with you and you need to worry of it getting stolen . the best part is that you get 52 days of free credit. you buy a product today, use it today and get 52 days of free credit to pay. what can defeat that .

in the end, I think it is very important to pay the money each month so that you do not get used to revoluing credit.

Answer 5

As long you pay in full when the monthly bills come, you win.

You win:

- Delay payment (not paying on the spot when you shop)
- Earn any loyalty points.
- A consolidated statement of all your purchase
- A recognition :)

You will lose:

When you cannot pay in full when the bill come.

- Lose more money, for paying off the interest.

Answer 6

wow, i'm glad someone would raise a question like this ... well, this is the very day that my credit card got cut ... it's really convenient if you have one but the bills are unstoppable ... but it all depends on how you handle things financially ... bankers almost always wins! no doubt!

Answer 7

They are a good thing for the person who can pay off his balance every month. For everyone else, they're bad.

Answer 8

Good only if you pay your balance completely each and every month.

Answer 9

if u use bur head while using one it is good otherwise very bad;-)

Answer 10

I don't have one and never will. They are nothing but trouble!