I realize many people out there shun credit cards entirely. While I can see their point, they are actually bucking a system ingrained in society. By doing this, they are inadvertently hurting themselves.
Yes, credit cards can be black holes into debt and financial ruin, except, they are not a loaded gun. You have to use them incorrectly to get yourself in trouble. There is no accidental debt.
The problem with not having credit cards is our society has become so reliant on them. Therefore, so have the credit bureaus for their credit reports and scores. By avoiding credit cards completely or only having one account that you hide in a drawer for emergencies, you are restricting your ability to gain future credit or loans.
The ideal is to have two to three cards. Try to find some that also pay you some sort of rewards with no annual fees. Keep one or two in your wallet and one in your drawer. Then, if there is an emergency (your wallet was stolen) you have a second one for backup.
If you don’t think you can handle credit responsibly or you have gotten in trouble in the past, you can still have credit cards. A good trick to maintaining a strong credit history, without actively using your cards, is to have bills charged to them. For example, many cell phone companies, newspaper services, cable companies, gym memberships and more, will allow you to bill their fees to a credit card. That way you simply pay the credit card bill each month and build your credit history at the same time.
Whatever your inner feelings are about credit cards, they are unavoidable in today’s financial world. They can offer you free money through rewards, protect you from theft, and protect your purchases as well. Be smart and use credit cards wisely, they can help you both build a good credit and gain some benefits in the process.
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