I have a lot of buddies who seem to use Credit cards as if they were cash. They spend money they don't have and when they hit their limit just open another card up.

People don't realize how much money they are losing by having to pay 10-25% APR's on Credit cards. Instead of spending money you don't have, only spend what you can afford to pay for each month. Credit card interest is compounded monthly thus a 20% APR is really much m ore if you don't pay it off each month.

If used properly one can actually make money by using credit cards. There are several companies offering 1-2% cash back on each and every purchase you make. If you get a card and instead of just paying the min balance due each month you instead pay it off in full each and every month you will build up your credit score while also getting back 1-2% in cash each month.

Be smart. Plan things out, and understand how much money you will lose if you don't pay the account off in full each month. Those who don;t are the ones who are digging a whole for themselves for decades to come.

Matt

With Credit cards you are much more likely to buy things that you either don't need or can't afford.

If you can't pay the balance off at the end of the month, then you can't afford it. There is no virtue in needlessly paying credit card interest.

if you really want to / have to have it, then use it to buy gasoline and that is it unless you are out of town and in an emergency.

Credit cards are used effectively when you can control your spending limit and can be very beneficial.

Hi there,

Well in my opinion, a credit card is a good financial resource if you manage it sensibly. People have actually used credit cards and earned a lot from them. Even for a personal use, a credit card is the best financial utility to have.

Regards