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To Those Who Hate Credit Cards

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Last Verified: March 22, 2023

It is important to acknowledge the concerns of individuals who are hesitant to obtain a credit card or incur debt. Many individuals fear the potential for accumulating excessive debt and losing control over their spending habits. However, avoiding credit altogether is not a viable solution. Without credit you cannot get a mortgage or receive favorable auto loan rates. You may be denied for some jobs.

By opening a few credit cards early in life and paying off the balances in full each month, consumers can establish a credit history that will prove useful in the future when making larger purchases such as a home or car. Furthermore, using credit cards for purchases such as airline tickets and rental cars can provide added buyer protection and ease of transaction.

It is also important to recognize that while banks may tout the benefits of using debit cards, the funds are still tied to a bank account, leaving individuals vulnerable to potential loss if their debit card number is compromised. In contrast, credit cards provide greater security and faster resolution in the event of fraudulent activity.

Scared about debt? There’s a solution. You don’t need to use your cards to build your credit. Open a few, use them a few times a year and put them in your drawer. Your credit will be built and you won’t go into debt.

Ultimately, a balanced approach that includes the use of credit cards for regular purchases and responsible payment habits can provide significant financial benefits. Individuals who solely rely on cash may find themselves at a disadvantage when making larger purchases or needing to establish a credit history.

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