I’ve heard this myth so many times, I can’t even tell you how many. Credit cards are not bad, they are a piece of plastic or metal that allows you to purchase items and services. A credit card is a tool that can be used responsibly. It can also be used irresponsibly.
I use credit cards pretty much every single day and I pay off my credit card multiple times a month. I know, I am a little crazy. I’ve never had credit card debt and I don’t ever plan on it happening, however, I can’t say never, because who knows what the future holds. But I don’t expect it to happen. I only use my credit card for purchases that I have the money to pay for.
Credit cards give me the flexibility to buy items without carrying around a wad of cash. Many are FDIC-secured and are safe to use. They have theft protection and I get points and use that to help pay for some of our purchases.
I had my credit card information stolen about a year ago. It was a pain in the butt. Luckily I noticed the fraudulent charge right away and so did the credit card company. You see the thief tried to buy not only one but two expensive large, ocean-grade fish and depth finder GPS gadget thing. The first charge went through and the second charge was stopped by my credit card company. I then received a text alert and was able to call the credit card company right away. It ended up taking a few months to get everything fully cleared up and dealt with, but I wasn’t “out” and didn’t have to pay over $5k for that fish finder that was fraudulently purchased with my credit card.
If I had cash and was robbed my money would be gone and I wouldn’t have gotten it back. I know that is a bit dramatic, but it happens every day.
As far as credit cards, I have a Kwik Trip card that I get a discount on fuel and purchases from Kwik Trip that we frequent often. Like at least a few times a week if not more than that. I have a business credit card and a personal credit card.
We love Kwik Trip!
I use my points on my personal credit card to purchase some of my boys’ sporting equipment, shoes, boots, winter gear, hunting gear, and occasionally some other clothes for us at one of my favorite stores, Scheels. Since I pay my credit cards off in full, every single month, before the due date, I never pay interest or fees! Having a credit card also helps me keep a high credit score, but it is not the main reason why I have it.
Just the other day, I went to order a new office desk chair and went to use my business credit card, I had points on there and was able to get my new chair for a fraction of the original cost. I think instead of paying $240 it was only $70! Or something like that. So credit cards can be used responsibly, they can give you bonuses, flyer miles, cash back, gift cards, and other points to use.
However, you do need to be careful with them. You need to have a plan and a backup plan. Most people who are in credit card debt didn’t get there because they wanted to… Most had a plan to pay off their credit card bill, but other things popped up in life and because you don’t HAVE to pay off the credit card balance in full, they didn’t, they prioritized paying a different bill. And the cycle repeats itself.
So a good rule of thumb, only make purchases with your credit card if you know you have the money to pay for it right now. Pay off your bill in full every single month, maybe even twice a month to stay ahead of it. Make sure to have an emergency savings fund in place, so if other things pop up that you absolutely need to pay for, for example, your heater goes out, or your car needs repairs to be safe to drive, or you have a medical emergency, you can use that money out of the emergency account to pay for it and you can still pay off your credit card in full!
Also, don’t try and beat the system, however that may look. There are new ways to beat the system that arise daily. Use your credit card responsibly, use it for things you need to buy, pay it off in full every single month, and go on your merry way with being financially secure while utilizing a credit card for safety and convenience.
xoxo
Jess Wayne
