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are credit cards good or bad?

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amanda9069

Asked by amanda9069 at 3:50 PM on Jun. 6, 2010 in Money & Work

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Answers (10)
  • BAD!!! the interest rates are rediculous. people get them thinking they can buy anything. i only trust debit cards because you can use them as credit cards and it's money you KNOW YOU HAVE.
    aliishott2

    Answer by aliishott2 at 3:52 PM on Jun. 6, 2010

  • In my opinion: Bad!
    SAHMinIL2

    Answer by SAHMinIL2 at 3:53 PM on Jun. 6, 2010

  • Both. If you have one or 2 and keep the balance paid off monthly it builds your credit score. Which you want to do if you want to purchase a car or a house. But it's when you can't make your monthly payments or have too many cards, or don't even know what cards you still have open (but are paid off) that can begin to affect your credit in the negative ways. If you have a bunch of cards with say, a $5000 limit on each, but have $0 balances on them, that's not what a lender looks at. Sometimes they look at the fact that you have 5 cards with a $5000 limit. I think, I could be wrong. But if you have a card and pay it off monthy it can help raise your score, if that is what you are wanting to do. Or it can show a lender you can be responsible for your financial loans.
    2BlondeBabies

    Answer by 2BlondeBabies at 3:55 PM on Jun. 6, 2010

  • Bad. Statistically speaking you spend 12 to 18% more when you use a credit card vs. cash. That's ridiculous! Plus, the majority of people don't pay off their balance in full every month, which means they are over spending, and then paying interest on that which averages well above 15%.

    Yes it MIGHT save you money when you go to get a loan etc. But just think about it- how much money are you really saving, if you got over charged to begin with?

    Yeah cut the damn things up, pay them off and start paying with cash. That will save you money.
    Check out DaveRamsey.com
    Anonymous

    Answer by Anonymous at 4:15 PM on Jun. 6, 2010

  • Credit cards are BAD. I don't even buy into the "gotta have one to raise your credit score." Credit scores only tell how good you are at getting and paying your debt, and when is debt good? This economy should have taught many people the cruel lessons of how painful debt can be...losing cars, homes, etc. because they can't pay their debt payments. Credit cards can actually be very detrimental to your FICO score if you happen to run them up to their limit, which is VERY easy to do, and then only are able to make minimum payments.

    I agree with having a debit card, I have two. I know that I can only spend what money I already have.
    michiganmom116

    Answer by michiganmom116 at 5:24 PM on Jun. 6, 2010

  • They can be very bad. You have to know how to be responsible with them.
    KairisMama

    Answer by KairisMama at 5:39 PM on Jun. 6, 2010

  • Both. Frequent, responsible use of credit is the fastest way to boost your credit score. If you use it every month and pay it every month, that's good. It's also nice to have that record to keep track of your spending. I use my credit cards for everything and pay the balance each month. Sometimes I will look through the statements and think wow, we need to cut down on eating out. It's nice to have a record of where your money is going. Now, if you are carrying a balance or paying any interest at all, that's bad.
    JulieJacobKyle

    Answer by JulieJacobKyle at 7:40 PM on Jun. 6, 2010

  • Bad....
    Unless you are responsible, which most people are NOT.. Credit Cards burn holes in pockets. lol...
    If you have the will (it takes ALLLOOTTT!) to put money on a Credit Card & pay it off at the end of the month, EVERY month.. Then a CC might be good just to get your credit score up.. but most people just cannot do it.. its very hard...

    ---Have the money IN THE BANK.... Ex. Instead of spending $100 cash for groceries, go put $100 on CC... At the end of the month send that money in to pay off the CC... But make sure you have THE MONEY IN UR HAND! Dont ever say OK next week Ill have $200 & it will cover it.. KWIM?
    Only spend what you could really spend RIGHT then! NO "IOU" to yourself! LOL
    MommaTasha1003

    Answer by MommaTasha1003 at 9:40 PM on Jun. 6, 2010

  • It depends on the person using it! My husband and I have a credit card and it has helped our credit score out so much! You just got to make sure you are smart with it, trust me we are smart with ours but there are times when its kind of hard to not use the card for stuff we shouldn't buy. Good Luck!
    ZaraN

    Answer by ZaraN at 3:33 PM on Jun. 7, 2010

  • In our house they are bad. Yes I am sure they can be used for good and be used responsibly. But at our house we have made the choice to go completely debt free. We sold our cars that had payments and then canceled all of out credit cards. Those payments can get you if you aren't careful! We now have en emergency fund so credit cards arent needed. We but cars with cash and our lives have been better ever since!
    tiredmomfor2

    Answer by tiredmomfor2 at 3:40 PM on Jun. 8, 2010

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