We’ve known several couples over the years who have been counseled, sometimes by secular financial advisers, and sometimes by pastors or other religious leaders, to take a pair of scissors to all of their credit cards and never look back. But, is this good advice? For most people, with a little bit of credit card comparison and some self discipline, credit cards don’t do any harm.
Of course, using a credit card indiscriminately can get you into a lot of trouble. No one in their right mind would deny that. The interest rates, especially for those with poor credit, can be astronomically high, and it doesn’t take very long for that interest to accumulate into a massive, unmanageable heap of debt.
But just because you have a few plastic cards in your wallet or purse doesn’t mean that you need to act like you don’t have any common sense. Credit cards shouldn’t be used to take the place of cash that you don’t have in most cases (dire emergencies excepted). Rather, they should be used for their intended purpose: making life more convenient and purchasing items and services which you can afford to pay off promptly.
These days, there are several things you simply can’t do without a credit card. For example, you will need a major credit card if you want to do any of the following things:
- Rent a car.
- Reserve a hotel room.
- Book a flight on an airline.
Before you take any credit card, you should do some credit card comparison. Make sure that any card you accept allows you to avoid paying interest by paying off your balances immediately.
Other things you will want to compare and consider before choosing a credit card include:
- Interest rates. Lower is better.
- Fees. Again, lower is better.
- Rewards. Find a credit card which offers rewards like frequent flier miles which will most benefit you. If you’re not interested in a rewards program yourself, consider a credit card which gives cash to your favorite charity when you charge.
Whether or not to use credit cards is a personal decision. If your lifestyle doesn’t require it, and you find yourself unable to pay credit cards off completely at the end of the month, you’re probably better off living without them. Just don’t buy into the idea that credit cards are a bad idea for everyone.