Are Credit Cards Worth it? | Credit Card 101
Channel: Reggie Bryant
Date: 2020-04-15

Are credit cards worth it…? I mean, many will have you believe that credit cards are bad, but are they really? You will find out in this video.  Great Books: Emotional Intelligence 2.0: https://amzn.to/2nbzARk
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So this is a bit of a controversial topic, but I figured I’d give my 2 cents… Some highly impactful people such as Dave Ramsey, don’t like credit cards and for a good reason, credit card debt. With credit card debt comes interest, specifically, high interest. The higher the interest, the harder it is to pay off your debt- which makes it very obvious why it can be problematic. Meanwhile, you have others just as rich and impactful as Dave Ramsey, who speak highly of credit cards. This poses the question: are credit cards good or bad? To answer this, we’re going to need to dig into some facts and look at pros and cons.

First: Are Credit Cards Good or Bad?
Credit card 101:
I want to address this first with some credit card 101, just incase you’re a beginner. So, credit cards are just another financial tool, not necessarily a good or bad thing. What makes them good or bad is the holder. Credit cards have high interest rates by nature, so knowing this, you should be wise as a credit card holder… if not, they can be very bad for you financially. Also, if you’re someone who would be seen as a “good” credit card holder, you’ll be aware of what you should look at when it comes to owning a credit card (i.e. interest rates, reward points, etc.).

Here’s a quick guideline to look at high and low interest rates for credit cards:

Low to high: 13.99%-23.99% (The better your credit, the lower the interest rates).

Second: Understand that credit is actually important to do certain things
If you can strategically build your credit score without getting into debt, you can build your credit score to be pretty high. The higher your score, the better and the more stuff you can buy- i.e. cars, houses. Think of it as your credibility; it’s almost like street cred but for your finances. 

The best way to do this is as a beginner is to purchase items with your credit card that you already have money for. For example if you go to a gas station to fill up, you can simply use your credit card every time you go and just pay it off in the same day or before you’re affected by the interest rate. Then it’s literally just like you used your money anyways but you’re building credit at the same time. Of course you can get more advanced with this but for now, that’s my example. 

Third: Using credit cards can ACTUALLY have financial benefits
That’s right, some credit cards have rewards systems in which you can receive rewards that are of monetary value- such as highly discounted, or even free plane tickets. Not to mention cash back options, which if you use your credit card strategically as described above, you can actually find that you can earn a small portion of what you spent back- which can definitely add up over time. 

Fourth: credit cards DO require financial discipline
There are very basic and simple (but not easy) principles everyone should follow with money. When credit cards are involved, they should be followed even MORE closely. For example, if you can’t afford it, don’t buy it (ESPECIALLY don’t use your credit card to ‘buy’ it) because then you’ll be making payments and accumulating interest. 

Fifth: With anything financial, think for yourself and do your own research
Don’t just take my word or my opinion on this. If you ever hear anything financially that you’re unsure of, question it, challenge it, even. There’s people on both sides of the spectrum who feel strongly about credit cards (both positive and negative views) so definitely, I wouldn’t just go off of what people on the internet have to say. A lot of us hear that credit cards are bad all their lives to the point where they wait several years to get credit cards and miss out on potential financial gain, buying power and free flights.

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About Me:
Hey, I'm Reggie Bryant! This channel is all about personal growth , intentional living, and success. This is where share my knowledge, inspiration, and past experiences to help you improve your life. This channel serves to provide insight and wisdom in all aspects of life for you to apply immediately. I focus heavily on mindset, habits and mind-blowing concepts that challenge and even change the common way of thinking. This is all to improve your life and get the results you've been looking for.