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Anything Goes Monday: The Pros and Cons of Credit Cards

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If you live in the United States, chances are, you have a credit card (or a few). According to a recent study, over half of the people living in the United States have a credit card. Credit cards are almost necessary with credit scores ruling over your life. If it's high, you're good! But if your credit score doesn't look too hot, it can have a negative impact on your life. Just having one late payment can do some serious damage to your credit score. But despite these negatives, there are a lot of positives when it comes to credit cards. If you are thinking about getting your first credit card or thinking about getting a new credit card, check out these pros and cons before you get that credit card.

Pros

An up and coming YouTuber named Graham Stephan is a huge promoter of credit cards. If you haven't check him out, he gives a plethora of financial advice if you want to save some extra money. Some of these pros have come from him and I would highly advise checking out his channel.

Points, Points, and... More Points!

The number one reason for ever having a credit card is scoring free points. Points can be used for plane tickets, hotels, trips, and much more. Also, if you spend a certain amount in a certain period, they will give you extra bonus points. That is called "credit card churning," which means you get a new credit card, spend the set amount of money, and reap the benefits. While cards with an annual fee usually offer more points, there are plenty of free options that will still give you points or cashback.

Automatic Payments

With the internet and technology changing at a rapid pace, it is no surprise that you can access your credit card accounts online. With being able to access your credit card accounts online, most credit card companies allow you to set up automatic payments. You can choose whether you want to pay off the full amount, the minimum amount, or a set amount every month. This helps people who have a hard time remembering to pay things on time, such as rent or utilities.

Disputes With Your Credit Cards

If there was a false payment with your credit card or someone stole your credit card, it is much easier to file a dispute with a credit card rather than a debit card.

Cons

As with almost anything, there is always a downside. Just like before, the opposition to Graham Stephan would be Dave Ramsey. He despises credit cards and would rather pay with cash.

Spending More Money

One thing that credit cards could potentially do is convince you to buy more things. Credit cards that give you extra bonus points if you spend a certain amount are guilty of doing this. Also, credit card companies will try to increase your revolving limit (assuming you pay your bills on time), which in turn "allows" you to spend more.

Tracking Payments

Another con is that it can be harder to track credit card payments. If you have a banking app on your phone like me, it's easy to check to see how much money is going in and out of your account. However, if you have a credit card, the amount won't be deducted from your bank account right away because you haven't paid your bill. While you are allowed to pay your credit card bill at almost any time, some credit card companies will look down on this method.

Minimum Payment

If you are addicted to spending money, credit cards definitely won't be the right choice for you. I've had family members who weren't as financially smart and would only pay off the minimum payment for their credit cards. They would continue to rack up payments on their credit cards, but that would decrease their credit score.


There you have it, a quick list of the pros and cons of credit cards. Hopefully, you can use this information when thinking about getting a new credit card. If you have any useful information to consider, leave it down in the comments section!

Anything Goes Monday is a new series on my blog where I talk about a topic not related to music. Anything Goes Monday will take place on the first Monday of each month. Stay tuned for more Anything Goes Mondays and let me know what you think of the segment! Check out the previous Anything Goes Monday here!

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