Can anyone give me three reasons why people should not sign up for credit cards?

Question

Please give only valuable and intelligent answers.

Answer 1

#1 -- they are stupid.
#2 -- they are unnecessary -- a debit card will suffice with ANY transaction that a credit card will, purchase protection and lost/stolen card inc. (read the agreement posted on the card website)
#3 -- "I'll just pay it off every month". How many hundreds of thousands of people have said this, how many really do it? A handfull. When you play with fire it burns you. The credit card industry is the nastiest bunch of morons you could EVER deal with. One late payment, your 12% interst rate leaps to 26%, then you get a $30.00 late fee. Two months later, after the higher interest rate takes hold, you are late again, then you discover you are over limit -- a $50.00 fee on top of a $30.00 fee on top of a payment. It never stops -- if you REALLY get into trouble the collectors start calling day and night. You cut a deal to get them off your back -- you give them a check over the phone. The next day you discover they emptied your account. Illegal? Sure. So? What will you tell the judge? -- you owed them the money, they took it. How will you defend yourself? In the meantime, they decided to wreck your credit report -- which makes it impossible to buy a house or premium insurance.
This happens every two minutes. Honest.
Now --- see reason #1.

Answer 2

High interest rates, debt, and unmanageable.

Credit cards can be a nightmare if one thinks they are "free money." Buy whatever you want and pay it back for $15 a month! Not at all. The finance charges will add up to more than the minimum payment each month. As a result, assuming that only the minimum is paid, the card will reach it's limit. The balance will keep going up even if it tips the card over the balance. When that happens, the interest rate will sky rocket. BUT! One only needs to pay the $15 minimum payment! It's a mad cycle to get into.

On the other hand, if one manages credit cards well, they are great to have. You can transfer the balances from high interest cards to one with 0% interest on balance transfers. Just pay it off during the year of the promotion. For purchases, pay off the balance each month, ie don't spend what you don't have.

Answer 3

Better than reasons are personality type. Here are some personality traits that aren't good if you're thinking of getting a credit card.

1.) If you're a procrastinator, then making payments on time will be difficult. Your credit report will be littered with 15 and 30 day late payments, not a good idea.

2.) If you're thrifty, and don't plan out purchases, you might overspend, not being able to pay back what you owe. Then you're making the minimum payment every month, and a fully charged card is a red mark on your credit report.

3.) If you owe money or have no job. Credit cards are awful to use to pay off loans. You're getting an interest rate that is really high right now with the FED raising interest rates all the time. You could be paying 20-40% interest, who knows.

If you're getting a credit card to simply build credit, you can pay it off monethly if need be, and you have 1-2, then you're fine.

Answer 4

1- If your score is below 700 . Why ? It's easy to demand your credit line or get the best interest rate.

2- If don't have a job or other sort of incomes

3- If you're irresponsible and have a bad spending habit

Here's 1 more : Never accept any card that charge you an Annual Fee , and never accept any card without 12 months 0% introductory rate.

Answer 5

Personal experience.....
DO NOT SIGN up for store credit cards as ....
1) The interest rate is to high and you end up paying more for the product than you purchased it for
2) Tempting to use it instead of learning to save for what you want
3) Mess up and miss a few payments and totally destroy your credit rating which you need for everything in life you want to do

There is nothing wrong with having a credit card once you have the money to pay of balances quickly. Just stay away from department store cards, or those with high interest rates and fees.

Answer 6

If you dont pay it back within the time limit, they start charging high interest rates. I think its like almost 20%.
Since you dont actually hold the money in your hands, you dont really know how much your spending. You might get in the habit of impulse buying. Basically, going over the top and buying more than you can pay back.
I cannot think of another bad thing about a credit card, but as long as you know your limit, credit cards are good when you are spending a lot of money at one time. Like for a sofa or a computer.

Answer 7

I'll give you four.

If you can't pay your monthly credit card bill on time in full each month, don't sign up for a credit card.

If the credit card you are interested in charges annual fees, don't sign up for a credit card.

If you don't understand personal finance and debt management, if you can't handle money wisely, don't sign up for a credit card.

If your spouse falls into any of the above 3 categories, don't sign up for a credit card.

If none of the above apply, I see no reason you shouldn't apply for a credit card.

Answer 8

It cost you more to buy something and paying interest rather than saving up and paying for it all at once.
It is too easy to buy something, putting it on the card, knowing the bill won’t come due for 30 days and you have that long to come up with the money.
It will teach your children more about the value of a dollar and to be accountable and responsible towards your personal finances if you work on a cash only standard.
RR

Answer 9

There should be only one main reason why you should not sign up for a credit card.
If you do not have the money to make the payments? and making more than just the minimum payments.

Answer 10

Credit cards are good to have. However, they are bad for the following reasons:
1. high interest rates (that will kill you if you have a high balance)
2. If you have a high balance, you will owe a lot each month.
3. Tempting and easy to use amd easy to get yourself into trouble. Companies will increase your credit and it is really hard to not use it.
I would get one, but be careful. They are a blessing and a curse.