Pros and Cons of owning a credit card.

Malaysia
January 11, 2007 11:50am CST
I used to own a lot of credit cards. At first, I thought it is a symbol of status, financial wellbeing. The banks were graciously coaxing me to take more cards. More than I actually need. After a while, I realised that there were more cons as I was overspending, worrying about the card payments monthly. I knew I was not disciplined enough. I finally cut up most of my cards and returned them to the banks. Today, I only own one mastercard and used it wisely. What are your views about owning credit cards? Are they good or do they do more damage. What are methods we can use to curb our falling victim to the ownership of credit cards?
4 people like this
19 responses
@FreakQD (867)
• India
12 Jan 07
You are absoutely right friend. I also thought that owning more credit cards increase our status and got credit cards from all the banks. But later only realised that it wont increase our status but would increase our debts. If a person does not have self control, then its better that he dont get a credit card. I am a person who does not have self control and i used my credit card to the core. Now I realised the consequence of that and i started closing my credit card one by one. Its better to hold only one credit card and we have to use that only when it is so important. Also we need to clear pending dues as soon as possible. Also, one thing I learned from Credit cards is than never make a late payment. Late payment fee will be more that the interst.
2 people like this
• Malaysia
12 Jan 07
Let us keep ourselves reminded to be disciplined in our card spending. Another good service to society is to remind others whether on the net or physically about this. You will never know, you would have help someone from crashing into financial woes.
2 people like this
@FreakQD (867)
• India
13 Jan 07
You are right friend. This topic may help others to be more cautions while using credit cards.
1 person likes this
@nancygibson (3737)
• France
12 Jan 07
I think credit cards have encouraged a huge number of people to get badly in debt. Its far too easy to get one, they make no checks on how you will pay it back, and they keep upping yoru limit so you are encouraged to spend more. We had one and the interest was so high in the end we upped the mortgage to clear it and never ever use it now. We just keep it for real emergencies, and hope we won't need it. Its useful to have it available, if the car broke for exampel it would mean we could get it fixed before payday, but I wouldnt want to use it everyday for any reason at all.
• Malaysia
12 Jan 07
When your credit ratings are good, all the banks will be sucking up to you to offer their "wonderful" credit cards. You name it - gold, platinum even titanium cards. I will not say credit card is bad but we need to be disciplined in our usage. Your illustration is true.
1 person likes this
@seenoreen (560)
• Philippines
12 Jan 07
I think credit cards are good in the sense that you only use it if you really needed it. For example, you're short on cash and you really need to pay your bills. You can use the credit card first and just pay it off when you have the cash. The bad thing is that when you just buy things that you really don't need like luxuries. This results to overspending and being in debt. What I can advice is that if are an impulsive buyer, don't get a credit card or have only 1 credit card for emergency use. If you have a lot of self control and very disciplined then go ahead and have as many cards as you want. I know that these kind of attitude won't tempt you to overspend or buy uncontrollably.
• Malaysia
12 Jan 07
Good response. I am glad you understand the evil of credit card usage. In fact, one good way to prevent credit card spending is to leave it at home when you go shopping. Just buy what you need only and pay with cash. Remember to settle your card statement in full each month whether the amount is huge or small.
1 person likes this
• India
12 Jan 07
pro.....you have buying power...con...you have to pay for it later!!!!!!
2 people like this
• India
12 Jan 07
it is good to own a credit card but to a extent if you miss use it its not good therefor a credit card has some prons like they are miss used some of us can not take care of them so its good not to have these credit card if we can not use them wisely and keep them safe and proper
@emeraldisle (13145)
• United States
12 Jan 07
I wish I could go back to when I was in college, when I was offered all these credit cards before I could really comprehend how much damage they could do, how to handle them correctly, and know what I was getting into every time I used on. Hindsight is 20/20. I don't have any right now for a variety of reasons and although around certain holidays I might wish for one I'm just as glad I don't. They can really cause you to have trouble.
@wanna_be (411)
• Philippines
12 Jan 07
I own 2 mastercard right now and I don't intend to add more even if my other banks are encouraging me to apply for other cards. Because sometimes if I have it and I saw something that I want to buy even if I don't have the cash then there's a tendency that I will buy it because of the card. But I am thankful that my card has low credit limit and I left it at home most of the time. I will only put it in my wallet if I really need to buy something even if I don't have the cash.
@ryanbgico (258)
• Philippines
13 Jan 07
For me I own four credit cards, three Visas and one Mastercard. I do agree with you that we shoud be very organized in managing our credit cards. Well in our modern and high-tech world, it's the easiest way to use to satisfy our needs as well as our wants. Financially, yes, you have that great opportunity and flexibility with regards to your buying power, but always keep in mine using our credit cards is still debts that we should pay soon, and the more delayed in paying those debts the more we are at risk to pay more than it is paid in cash. Credit card companies do offer online services, to manage our credit cards accounts in a 24/7 basis, perhaps that's the best way to keep track of our purchases and future payables. In this way, we will be aware when to pay our payables, monitor our purchases, and check our available credit limits. Further, credit cards companies do educate their cardholders accordingly, and we should take those advises from them seriously. The best ways for us not to be trapped in the pitfalls of credit cards is that we should seriously minimize our wants, and do pay cash to our purchases as much as possible and available.
• Malaysia
13 Jan 07
As much as we can see the importance of having a credit card, we just need to be vigilant not to fall victim to it's pitfall. Using our credit card wisely by purchasing only our needs and not our wants is one way. Then we make sure that we settle completely every cent on the monthly statement. In this way, we will still maintain good credit limits or ratings for future financial undertakings.
• India
12 Jan 07
there are several advantages as well as disadvantages of using a credit card. the advantages are that u dont have to carry physical money with u to purchase anything u can also make purchases online using a credit card while the disadvantages are that if it gets into wrong hands can cause a lot of loss to the original owner can be misused by a hacker who gets the data from the internet by online shopping.
1 person likes this
• United States
12 Jan 07
This brings me to another pro of using credit cards. With cash, if someone steals your money, it's gone, credit cards have buyer protection so if someone steals your money, more often than not, you get it back.
1 person likes this
@vivasuzi (4127)
• United States
12 Jan 07
I think you and others have the cons covered! Pros: If you are wise you will treat your credit card and pretend it is a debit. Pretend it comes right out of your bank account, and maybe even write in your checkbook when you use it. That way, you can always pay it off when the bill comes b/c you already calculated it so that you can! I charge EVERYTHING I can, but I pay it off each month and never carry a balance. Perhaps if I were buying something like furniture I might carry a balance, but I will try not to. Most cards now offer rewards points, so every purchase I make gives me points, and the points add up to free cash! That makes it worth it. I only have 2 credit cards, one Visa and the other is for a clothing store I love. I try to avoid spending money in general, but if I am definitely buying something, I'll charge it so I can get the points. Finally, it does help your credit score if you have a good history of paying it off. People with no credit cards, no loans, no anything, will have a hard time getting approved for a car or house in the future.
1 person likes this
• Malaysia
13 Jan 07
This is a good response. Your idea of treating the credit card like a debit card is great. That means no money in the bank account, then do not buy. Pay off every cent reflected in your credit card monthly statement and you will never be in trouble. It is good to go for credit cards which allow you evergreen reward points. In this way, you can accumulate more points to redeem better items of value. I sincerely hope that other mylot members who read this post will follow your example.
@annieroos (1846)
• United States
13 Jan 07
Sometimes credit cards are not a good idea, I think the pro's of having a credit card is that , if you keep up on the payments that it will help with your credit score, especially if you pay ahead of time will be good if you plan on buying a house in the future or a car.. basically something large..You need good credit for everything now a days.. And its good to use if you have an emergency.. needing to buy food or put gas in the car.. the bad part of having a credit card is that if you can't make the payments on time or skip payments it goes bad on your credit report.. and your score will go way down.. and then the credit card company will start adding charges for late fees or over the limit charges.. So there is good and bad..
1 person likes this
@ronaldinu (12439)
• Malta
12 Jan 07
A credit card can be efficient in buyin items online. Do not disclose credit cards information to anybody. Always try to purchase from renowned secure sites.
1 person likes this
• United States
12 Jan 07
I have tons of credit cards and there are no cons to having credit cards in and of themselves. There are cons in people believing they have to speand right up to their credit limit or lacking discipline in paying the money on time every month or thinking that having more credit cards means you have more money to spend. Credit cards take discipline, so if you aren't disciplined, they will always become a con for you. However, if you are disciplined and don't spend beyond your means, no matter the number of cards you own, they will more than likely be a pro to you. As far as pros, it is a pro to me, because the more credit I have, the more responsible I look to FICO, if I am not screwing up the large amounts of available credit that creditors have entrusted me with
1 person likes this
• United States
12 Jan 07
I own a few credit cards. I say they are bad if you like to spend money. Because you think you can buy it now and just pay for it later. But then it starts adding up more and more and then the interest adds more to it. But I think it's a good thing for people who need to build credit. And it's good if you have one and only use it for emergencies. I look at it as if you don't have the cash then don't buy it. But if your car messes up and you have no other way to work and you only have the option to fix it then I say put it on the card and pay it off immediately. So I think they can be good and bad.
1 person likes this
@chipslfc (98)
12 Jan 07
ive got a debit card. there much better although u need 2 have moni in ur bank account to use it ya know
1 person likes this
• Spain
12 Jan 07
Yo have to be responsability of your spends. But with a credit card you can buy without money. It´s great.
1 person likes this
• Spain
12 Jan 07
Yo have to be responsability of your spends. But with a credit card you can bay without money. It´s great.
1 person likes this
@ugachaka (297)
• United States
12 Jan 07
I have a couple credit cards but I really only use one that gives me cash back rewards. I used to always pay off the balance and it never broke $200. But when we had our daughter and things got tight, I had to use that to get by for a while. It shot up and I asked for a credit limit increase just to get by. I got it almost all the way back down with Christmas money, but before I knew it it was right back up there. It didn't help that I splurged on a new computer with my tax refund before I even got my W2. I used to think credit cards would never be a problem for me because I was paying them off right away and reaping all the rewards. A lot of people get a hold of a credit card and installing get into deep, but for me it took me 2 years. Now I don't even pay attention to the total, I just sign the slip. It's getting to the point where I really wouldn't mind cutting it up just to have one less thing to worry about.
1 person likes this
@raghwagh (1528)
• India
12 Jan 07
I personally think that one must take a credit card if required and not just for show off or status symbol.Credit card can be become the reason for a great financial damage.As correctly said by you if we have credit card we dont have control over our mind and we spend more than we have and when time comes to pay we fail and then have to pay interest like 30 to 45 percent which is too much and can cause bankrupcy. Also credit card is just a marketing strategy for increasing income in bank. But if one has control and can carefully use money for the credited perios then credit card is the best option.The only think is that we must have control over our mind.
1 person likes this