Do you think that credit cards should only be used for emergencies? Do you only use credit cards for them?

Answer 1

Yes they should be!!! Did you know that if your balance was $3000 at 19% interest and you only paid the minimum payment of $60 a month, it would take you 36 YEARS to pay off? I learned that in a credit counseling class I just took.

Answer 2

Personally, I put almost all purchases on credit card in order to gain the rewards that my cards offer (predominantly cash back). However, I only do this because I KNOW I can and will pay them off in full every month. If you miss even one month per year, this would be a bad strategy.

If you can't use credit cards this way (avoiding all interest and fees), then I would say, yes, use them only as a last resort, or use them just for an occasional purchase (not even once per month) just to keep them active and to bolster your credit rating.

PS- Here are a few things that are NOT emergencies: buying Christmas gifts, taking a vacation, getting a new TV, etc.

Answer 3

Absolutely! I have been in credit card debt before....once I paid them off, then ran them up again and it has negatively affected my credit. After many years without them, my husband decided to get two, one is secured, and both have a $300 limit. I told him that if we use it for random purchases, we must turn around and mail a check for the purchase that day. That way we keep the account active, and show timely payments and the balance is available in case of an emergency.

Answer 4

No, you can use credit cards for almost all of your purchases - provided that you can pay off your balance each month. As long as you pay off your balance each month, you are getting an interest free loan and will never pay interest on the money your are "borrowing". This can only be done if you are disciplined enough to know that you are able to pay it off every month. If you are disciplined enough, sign up for a rewards card (I use one that gives me a 5% rebate on gasoline, groceries and items purchased at a drug store and 1% on everything else). I prefer to use the rebate in the form of cash, but you can also choose a rewards card for travel, merchandise, etc.

Another advantage to using a credit card is it is great for budgeting purposes. The statement clearly describes each and every purchase down to the penny. When you are using cash all the time, this may be more difficult. Also, you can set up your credit card to have the full balance be paid automatically from your bank account. No late fees, no checks, no stamps.

And as long as you keep paying your balance off every month, your credit rating should improve. BE CAREFUL! Pay off every month and don't over extend yourself. Use it for stuff that you need to buy anyway, not for things you want. For items that are expensive - save up for it, use your card, then use the savings to pay it off.

Answer 5

I don't even have a credit card. If you think you need one, then yes, for your credit's sake, use it only for emergencies. Also, don't have more than two.

Answer 6

I USE MIONE EVERYDAY FOR EVERYTHING CAUSE I GET 5% BACK AT THE END OF THE YEAR AND I ALEWAYS PAY MY BILL IN FULL EVERY MONTH FOR THE LAST 24 YEARS AND COUNTING - NOT LIKE THESE OTHER LOSERS ON HERE WHO CAN NOT SAY NO AND RUN THEIR CREDIT BILLS UP AND THENN HAVE THE BALLS TO COME ON HERE AND ASK FOR LOANS , GRANTS, DONATIONS OR BEG . NO PITY FOR THEM FOR SURE .

Answer 7

i use my savings account for emergencies.


it's called an emergency fund..

Answer 8

I think it is used all the time.