Are Credit Cards Evil, or Should You Have One?
MartinRaymondo
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MartinRaymondo 〰️ 〰️
The credit card reigns supreme as the most aggressively promoted product worldwide.
We almost can’t imagine life without them.
Anyone who has ever been in trouble with debt can attest that they are very dangerous.
It’s like a snake that hides in the grass and is ready to make its move.
Here are two arguments to help you decide whether to carry a credit card.
Why You Shouldn’t Open a Credit Card
If you are irresponsible or impulsive with money, then stay far away.
Your intentions will be good, yet it’s like playing with cats.
Even the most gentle ones will eventually scratch and bite you.
Contrary to popular belief, you don’t need a credit score to survive.
You can do everything possible without a credit card or credit score.
Some tasks, such as renting a car or booking a hotel, might pose challenges, but a Visa debit card can handle them.
There could be a $500 hold on the funds in your checking account for the room, so keep that in mind.
Not all rental car agencies will book you without a credit card, yet most will.
Most banks will approve a mortgage if you’ve been employed for over a year.
It also helps to provide more than the bare minimum as a deposit.
They can manually underwrite and check with your current landlord to confirm your payments.
Not to mention, utility bills are fair game for underwriters as well.
Don’t allow the fear-mongering sheep to scare you into getting a credit card.
It’s okay to be a ghost in the system, and if a job rejects you because you’re not in the credit system, then it’s not the right place for you.
The reason people hound you so much is due to the fact it’s “normal,” and everyone else is doing it.
Don’t follow for the sake of following.
Make informed decisions and understand you don’t need a credit card to survive.
Why You Should Open a Credit Card
It makes some things easier in your life.
When you rent an apartment, they can run your credit score; if it’s good, they don’t need to look any further.
You might qualify for some reduced mortgage or loan rates.
Renting a car or hotel won’t interfere with money in your personal bank account being on hold.
If you’re the type of person who is responsible and not impulsive, then it’s much safer.
Some people can have a $15,000 credit card limit sitting there without wanting to max it out.
They use them accordingly and won’t get in trouble.
There are also reward points that you can enjoy.
Be cautious with this, as people tend to spend more when using plastic than cash.
So, those reward points might cost you more than you realize.
Credit cards also have certain perks like purchase and car rental insurance.
These even come with free credit cards with no annual fees.
Shop around and find the ones tailored to your lifestyle.
If you don’t travel much, then there’s no point in paying $350 a year for a beefed-up travel rewards card.
Final Verdict
Here is a cheat sheet to help you out.
Are you ever currently unable to afford your lifestyle?
Have you recently missed a payment for any bill?
Are you more than one month behind on anything?
Do you skip out on essentials before your next pay?
Do you buy things you don’t need even though you know you can’t afford them?
Are you impulsive?
I recommend avoiding the credit card life if you answered yes to any of these questions.
I went without a credit card for years, and it wasn’t that tough.
Why do I even own one?
This is a question I often ask myself.
Don’t get wrapped up in the pressure of owning a credit card unless it will benefit you and you can handle it properly.