How many people have credit cards, is it a help or a hindrance?

Question

I personally dont have one and I am hesistant to get one, but I am curious to see how many people use them and whether it helps or not?

Answer 1

Well, credit card is a powerful thing, you have to use it wisely. It frees you from the need of carrying money or even having sufficient bank-balance. So, it's definitely convenient. You can buy anything whenever your heart wishes. Also, for any online transaction, you need to have a credit card. (debit card doesn't work in that case).
On the other side, you may get out of control and end up in a huge debt. The banks offer 20-30 days of interest-free period (which starts from the date of purchase). Thereafter, interest is charged at rate in the range of 1.5-3 % per month. (That's very high). So, if you are not careful enough, you may end up in trouble.
Other risk with credit cards is misuse. If your card gets stolen or somebody comes to know the details (credit card no., expiry date etc. In majority of the cases 16-digit credit card no. and 3-digit CVV no. is sufficient for online fraud).
So, no doubt, credit cards are useful and empower the user. But they also come with some grave risks.

Answer 2

it is an absolute help. Besides the convenience of being able to buy things without having the cash at hand, you are now building your credit line.

Building your credit will enable financial institutions to determine whether or not you are a good risk for receiving a loan.

You will most likely need a loan to buy a car, or a house, so you will need to have good credit.

Starting small, with credit cards, will show financial institutions that you are responsible, and trustworthy, so they will be more willing to loan you money.

Be sure to pay off your credit cards on time, and always pay more than the minimum. It is probably best to pay the entire card off each month, and ALWAYS on time!

Good luck.

Answer 3

Dont get one if you dont know how to control it. It is a very good thing if you always keep a credit balance. Use it as a savings account, you get the best interest and can withdraw your money any time (unlike other savings accounts). If you have an emergency you always have funds available. Just remember you can get into debt very quickly. Ask the bank to set you a small limit (one you are able to pay easily) and if they up your limit phone them up and say you dont want it.

Answer 4

We have been credit card free for 10 years now and it's liberating. If you don't have to have one, don't get one. If you do, make sure it is one with a low interest rate, no annual fee, no perks like points to buy stuff (those cost most to own) and make sure you only use it when it is absolutely necessary and pay more than the minimum payment each month or you'll never get out of debt.

Answer 5

it's just a fact of life- you need a good credit rating to do just about anything nowdays, like buy a car or house. some employers even do credit checks. you can't get a cell phone without credit.

credit cards are neither good or bad- they are a tool. you need to build your credit now, so that when you want to make those major purchases, your in a place where you can a loan and a decent interest rate.

Answer 6

When i first had cc's about 10 years back...i misused them..i would max one then get another..max one then get another...i finally filed bankruptcy on them all, plus my car, etc...but i went without any cards for about 4 yrs...Now i have 1...trying to be very cautious with it...if you have strong will power i would recommend getting one..simply for emergency purposes or if you are a little short on cash from paycheck to paycheck..Like a visa or a mastercard...sometimes discover or american express are not accepted at places...If you are very young; like below 25..i would seriously think about waiting a few years! You may want everything your Friends have..haha don't go crazy with it.

Answer 7

Go ahead and get one, but make sure they give you a limit you can handle. I got a credit card when i was 19 and it helped my credit. I just paid it everymonth for about 3 years and it helped me establish some credit. Cause of that I just got a 2003 Acura TL. Go for it just make sure your limit isnt outrageous.

Answer 8

What this tells me, is that you're on the fringe of or over the charge playing cards debt to benefit ratio. they are elevating your prices to guard themselves in case you won't be able to contained in the close to destiny proceed to pay them. the first issue you are able to do, is to flow over your in coming funds as against your out going spending to make certain the position it may stay away from funds to placed more suitable for your charge playing cards to pay them off. i could also propose no longer utilizing them until eventually all are paid off. I particularly have lived on a specially income reality equipment because I filed for financial ruin in 2002 so i understand how confusing it may properly be.

Answer 9

I don't like carrying cash around (too easy to lose or get stolen.) so I find them helpful.

I pay my balance in full every month so I don't pay anything extra for the convenience.

And I get a small percentage back as a cashback bonus.

Answer 10

It helps....Many times I don't have ready cash so it helps to have a credit card to buy what I want.