If you’re in credit card debt then a credit card sucks.
If you have a high credit score because you built you credit with a credit card, then you have nothing against credit cards.
If you don’t have a credit card then you might not even have a opinion on them.
Regardless of your stance on that piece of plastic, you should know what a credit card is all about.
When you use your credit card you’re borrowing money from the company to buy something. If you pay off your balance on time every month, then you’re essentially getting a free short term loan and building up your level of responsibility (your credit score). This is all that’s happening. If you choose not to pay back the money that you owe, then you’ll be charged with interest. You’ll keep on getting charged interest on your balance until you clear your balance.
This is why it’s extremely important that you do everything in your power to only use your credit card when you have the money saved up. If you don’t have the money then the credit card company won’t just forgive you (unless you claim bankruptcy). The amount that you owe will just keep on adding up.
What’s the most annoying complaint about credit cards? When people complain that they shouldn’t have to pay their credit card bill because they claim that the credit card company is loaning you money that doesn’t exist or that they shouldn’t have given you access to credit.
You can argue that this is a valid point. You can blame the credit card company for even giving you the card. You can claim that they company is not even loaning you “real money.” The problem is that you’re borrowing money from someone with the promise to pay them back. It doesn’t matter if you feel that this money doesn’t exist or that they shouldn’t have loaned you this money.
I don’t want to see you get into credit card debt or to blame the system around you. Instead you can be much different. If you want to sign up for a new credit card or continue using your credit card, I hope you understand that you’re borrowing money with the promise to pay it back.
You don’t have to be like your friends. You don’t have to be delusional about credit cards and how they work. You can grab yourself a copy of my premium guide on how to conquer credit.
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