Are credit cards really useful?

Question

Advantages-Disadvantages?

Answer 1

Advantages:
-they help you build credit, which is one of the things you'll need if you're planning on buying a house (unless you have a lot of cash)
-you can buy things that you may not have cash for at the moment
-you can use it to shop online
-you may need it if you want to make a reservation, such as at a hotel or for airlines
- you need good credit to rent an apartment, condo, house, etc.
-some employers look for a good credit score when hiring, because if you have one, it means you're responsible

Disadvantages-
- you may end up spending way too much, more than you have
- you may not think about how you'll have to pay that balance off within a month or so (unless you want to make minimum payments for 20 years or so & end up paying way more than what the item costed you)
- if you're not responsible, it could ruin your life (at least for a while)

Answer 2

A lot of people get in trouble with credit cards, but with self-control, a credit card is a very useful tool. Just exercise discipline, and use it judiciously!

Advantages:

- Build credit history - you need it, period. I've known people very responsible with their money who never applied for credit cards. Because they had no credit history, they couldn't get loans for house/car. Without credit history, you can't even get a cell phone contract w/o a deposit. Without credit history it's harder to rent an apartment, sign up for utilities, and sometimes even potential employers look at your credit.

Doesn't matter how responsible you are or how much $$$ you have in the bank, you need to be able to show it by a *history* of using credit responsibly. (The key word is "responsibly.")

- Credit cards offer purchase protection & benefits. If you pay for goods/services and the merchant wrongs you? Your credit card company can often work as a mediator in these disputes, and help get your money back. If you paid cash, it will be much hard to get that back.

- You need credit cards for things like: making hotel reservations, renting cars, etc.

- Online shopping: Credit cards make shopping online easier (although there is paypal, not everyone takes paypal).

Disadvantages:

- The most obvious one is that people lose control and get into trouble. Swiping a plastic card doesn't feel consequential like handing over cash, so you end up spending $$$ you don't have, and before you know it, you're drowning in debt.

So it's a necessary evil.

Being responsible and disciplined is key here. Using computer software like Quicken to track your expenses, and keeping track of your transactions online can be very helpful. Know where & how much $$$ you are spending. Learn about how credit cards work - how intererest rates work, the terms of your card, etc. And stick to a realistic budget, and know how money works.

Credit cards are useful, even necessary. They don't make you lose control, but they make it easier. Take control and make it work for you, not against you.

Answer 3

There are some real nice answers here today.
However the truth is Credit cards are for slaves in 21st century. The average person not family has 8400$ in credit card debt not including car or home loans.
Cash is king and a debit card is equal to a charge card except you actually have to have money.
Suggest you Read ' Millionaire next door' . Visit DaveRamsey.com to learn about your money and what the banks don't want you to know.
Credit card comps pay their CEO's up to 400,000,000$ (400 million$) a year that come from your pockets.

Answer 4

Credit cards can be really useful. It depends on the discipline of the person. At one time, I had A1 credit and had several credit cards and no discipline. I was unemployed for 2 yrs. and the credit cards bills really piled up. I am older now and am having to repair my credit. Credit Cards are good for things such as when traveling and in extreme emergencies but not in cases such as those boots are on sale and I am out of cash. I hope this help. I will try all I can to help others not to be in the situation that I am in with my credit.

Answer 5

Credits are for a short period. They are introduced for the sake of robbery by merchants and banks. if you use them judicially, you can stop the exploitation. You must become a Robinhood to stop the unnecessary expenditure which seems to be necessary at the time of purchase. No doubt anything used in caution will prevent havoc in future. Discard those cards which have no good service so that banks come to rectify their attitude

Answer 6

It depends on..person...and the city u live...there is a possibilty of over usage also...please monitor monthly ur expenses...and statements.....for frequent travellers and business people it is very much better......u can get maximum of 50 dat free credit period and some companies are giving free insurance coverage also..... and some reward points also...there are not at all bad,,,but u have to monitor ur expenses....some people are using 2 to 3 caards for fashion to show others.....all u need to take care of it...

Answer 7

YES, esp when u r overseas and find urself short of cash when the merchanise is shouting "buy me! buy me!"

NO, since u dun see the cash when u r paying and can really lost track how much debt u r racking up. sometimes it's a rude shock when the monthly bill came.

it really boils down to how one manages his/her finances and SPEND WITHIN UR MEANS.

Answer 8

they are great for emergencies, or if you won't have the money for another week, i mean if the washer breaks and you don't have the money right then and there what do you do? you need a washer, its your own fault if you don't know how to handle credit cards,

Answer 9

yes they r very very useful if utilised in emrgencies.
disadvantage is over buying. if u can control that then there no disadvantages.

Answer 10

yes they are very useful as far as you have a good control over the person who is spending the money