As you go off to college, the military, or the workplace you will be afforded the chance to have your own credit cards. What are some concerns that you may have about getting your own card? What are the benefits of having one?
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The high interest rate on credit cards is definitely my main concern. As pointed out in class today, the average interest rate of a credit card is around 25%. And given that in college I'll either be unemployed or have a low paying part-time job, the interest will most likely build up if I'm not able to pay it off quickly enough. Another concern is the possibility of getting carried away with a credit card. What I mean by this is that for some people it's easy to just hand a cashier a credit card without even thinking about whether or not they'll be able to pay that off right away. So having a credit card is huge concern for any college bound student, myself included. Especially if I bring a car to college, it'll definitely be difficult to keep up with all the costs of having a car as well as a growing credit card bill.
ReplyDeleteThere are benefits to having a credit card as well. For example, if my car breaks down at college and I don't have the cash to pay for the repairs, a credit card would be necessary to pay the mechanics. Another benefit is that, if payed on time and used correctly, a credit card can be used to establish good credit. Good credit is important to have when making large investments, such as in a house or car.
Most kids who are newly entering the world have no money. Yea most have jobs but they are most likely to be part time and there is no way to cover the bills they now have to pay. Even with parent help, Thus the credit card.
ReplyDeleteCredit cards are fast and easy coverage with a heavy toll. The intrest rates never fail to put many Americans in debt. Most start out with the simple idea that after school they will have a better paying job that will easally cover the debt in a few years.
In the U.S. we made it hard for anyone to really live without a credit card.Like josh said its difficult now to even purchase things without a credit card and u need the credit for many things like loans.
So the question isnt really weather or not anyone plans on getting one, but how they will use it. Like the basic power can be good or evil childrens story.
Some of the concerns that i may have with getting a credit card is first of all will i because it seems like you need credit just to get a credit card in the first place. Another concern that I have is the intrest rates that are applied to the card comming out of high school i dont have any credit if I do manage to get a credit card the card will either be what you call a starter credit card which i have to pay money on just to open or the card i get will have an unreasonably high intrest. Also I would be worried about if I get into trouble and rack to much money on the card i would be worried i wouldnt be able to pay it off.
ReplyDeleteWell the benifits to have a credit card are you will start and allow u to build a line of credit that will allow me to get loans, a car, a house, other credit card that have lower intrest rates. Also i can be great in emergency if u ever need something immediatly and dont have the cash i will be ablle to charge it.
Rachel B.
You guys did a nice job already looking at the pros and cons of credit cards. Do you think that they are almost a necessity in today's economy?
ReplyDeleteA credit card company is extremely smart, bombarding college students with advertisements for credit cards. They kno wthat many students will be unable to repay the money, essentially loaned by the company, witht eh high interest rates on top of the initial borrowed money. Just like Josh said earlier, interest rates, along with being able to repay the money, are my main concerns. It is not uncommon to hear about someone who had entered college with no debt and left college with extreme amounts of credit card debt due to their inablitity to repay the interest, or even initial payment they borrowed. In order for someone to not have this dilemma they would either have to not make many purchases, in that case why even have a credit card? or work many hours.
ReplyDeleteThose reasons are often heard, through friends or commercials, but there are also a few positives that are not as relayed as mucha s the negatives. One of the most important positives, not only in college compuses but in every day life is that having a credit card is usually much safer than having cash. Another important point, for future buying power and obtaining loans, is paying a credit card on time will make a person have greater credit. Also, having a credit card allows a person to make purchases for things that they don't currently having the money for, but may have the money for at the end of the month.
Although I feel like having a credit card is almost a necessity in today's society, I don't believe that it is a safe option for college students. On the other hand there may not be any other choices for someone who cannot borrow money from their parents. This can lead to a vicious spiral downward for a person who does not have the means to deal with a credit card company.
Getting a credit card is a huge concern for me. I would have to use a lot of self disipline to make sure that I did not overspend or spend money I do not have. Also, I feel as if I would like to stay far away from paying interest and hidden fees that credit cards companies charge.
ReplyDeleteHaving a credit card is a necessity in today's society to establish good credit. It would also be good for me personally because I have a savings account where I can deposit money but my mom can only withdraw from the account in the form of cash. I also get paid in cash and I don't think carrying around $150 to $200 in cash is a good idea. Here a credit card could be useful to make purchases that would require that amount of money that I have, but cash that I can then deposit in the bank and earn a small amount of interest on. Hopefully soon I will be able to set up my own checking account so that I could have access to my money.
Owning a credit card, or multiple credit cards, is a huge responsibility to a younger adult. And for the young adult, it can be harder for them to maintain this responsibility because they have less self discipline. But as dangerous as credit cards can be, they are a necessity in today's society. Credit cards are much easier to carry than cash bills in a wallet. Also, it is easier to just hand somebody a plastic card rather than adding up bills.
ReplyDeleteAs credit cards can be a good thing, they also come with many things to look out for. Credit card companies target young adults with offers like a new iPod or tickets to sporting events to get them to sign up for that card. People take advantage of this. They see free stuff, but they don't realize what they are actually signing up for. The card companies charge very high interest rates that can be a killer to your credit. Low credit could potentially ruin the rest of your financial life.
The main concern about credit cards is just being smart about what and how much you purchase, and when you get payments in.
The concerns involving owning a credit card include the interest rates and self-discipline. Most college students don't have a job; if they do at all, it will be a low-paying part time job that is not enough to keep one afloat. Anything they buy, they may not be able to pay off right away and the interest rates will get hold of them. In addition to the original amount they will have to pay off, they will have to pay off the interest rates, as well, and in the end will be paying more. It is important to have self-discipline when handling a credit card because overuse of the credit card will result in spending more money than you are able to pay off, therefore setting off the interest rate issue. Self-discipline means weighing want vs. need and deciding whether you really do have the money to spend.
ReplyDeleteThe benefits of the credit card include convenience and availability of funds in times of emergencies. The credit card allows you to make purchases whether or not you have cash at hand on a daily basis. When emergencies come up, you can use the credit card. As already stated by others, building up credit score is another benefit of the credit card, as long as it is used responsibly.
I do think credit cards are a necessity. Many stores encourage the use of credit cards to pay for items because people tend to spend more when using a credit card rather than when they are using tangible money. I agree with Matt- credit cards are necessary but they are not the best choice for an average college student.
My biggest concern about having a credit card is if I don't keep track of what I spend, if I have spent too much and then if I am not be able to pay it back. This would then result in being in debt and not establishing good credit. I know that credit card companies will be targeting college students the most since the companies know they can get the most money through interest rates and purchases out of the students.
ReplyDeleteHowever, credit cards are beneficial. Credit cards allow people to make purchases that they might not have been able to afford in cash. Credit cards, as said before, are also safer than carrying cash and will eventually help establish a person's credit and can enable them to purchase a car or a house one day.
I do believe that credit cards are necessary for today's economy: there are not many things left in today's world that do not require a credit card. However, I think that people do not need some of the credit cards that they may have signed up for.
It seems that I have the same concern as many people when it comes to having my own credit card. My main concern is that I will neglect to pay the bill on time or I will choose to spend to much. At this point, I am trying to become better at saving money, instead of spending money just because I have it. I fear that if I have the opportunity to spend I may not have I will spend even more. I do not want to come out of college with a lot of debt, especially credit card debt. If I do not pay my bills in a timely manner, I will not establish a good credit history, which is essential for larger future purchases.
ReplyDeleteCredit cards also serve beneficial purposes. As I enter college I may encounter times when I have unexpected expenses, that may be large. If such expenses occur, they may need to be taken car of immediately, so there would not be time for my parents to send money. If someone is mindful of their credit card use and payment, they will establish a good credit history. Having a good credit history is essential in getting loans from banks for cars, apartments, businesses, homes, and other large purchases.I agree with Matt and Cassie that it is safer to not carry large amonunts of cash with you, and a credit card can eliminate that problem.
I do beleive that credit cards have become a necessity in todays economy, but households do not need the average of eight credit cards. Having one or two credit cards allows you to establish a good credit history that tells banks that you will pay back your loan on time. As I am going to be 18 in less than a month, I am thinking about getting a credit card and learning the basics of credit card use before I am out on my own
Credit cards have become increasingly popular in today’s society. They offer convenience that one doesn’t have with cash; a single card has greater value than even the largest stack of bills. They help to expedite shopping-- a desirable trait in such a fast-paced world. Many credit card companies also offer enticing rewards and rebates. Yet, when a single swipe can buy anything in the store with no immediate effect on the consumer’s wallet, buying can get out of hand. Purchases are made with less frugality, and without a great deal of diligence and care many credit card owners may find themselves spiraling downward into debt.
ReplyDeleteFor many young men and women, a credit card seems like gold. Plastic offers rewards and rebates, allows access to online shopping, and funds investments that would otherwise be impossible. Many, especially the young and inexperienced, are sucked into the illusion of this “unlimited money supply”. They make irrational purchases that they cannot pay back within the grace period, causing their interest rates to increase and debt to accumulate. In a time when they should be working to build their credit, they’re destroying it instead.
Straight out of high school, credit may not seem very important, but it will be down the road. One must attend to it with the utmost care, for it is this credit that will allow (or deny) access to loans or major purchases in the future. It is imperative to stay on top of payments.
Acquiring a credit card right out of high school is neither good, nor bad. Rather, it is a considerable decision that should not be taken lightly. With a credit card comes a great deal of responsibility, and each person should be sure to weigh the pros and cons before they make such a decision.
I seem to have the same concerns as most of the others regarding credit cards. Perhaps the first concern I will face is what credit cards I will need. I know that as a new college student, companies will spend lots of time trying to make buy their credit card. Hopefully, I will be able to sort out such problems before I leave home.
ReplyDeleteAnother problem, one I bet everyone else has written about, is paying the bills. It's no secret that I'm not a very "on top of it" person, and, having never paid bills before, I know it will be a shock for me when I start having to pay things in a timely manner (without my parents nagging me). I know I'll get used to it, as all people do, but it should be an interesting transition.
The money aspect is also huge. Interest rates on credit cards aren't tiny, and that money can pile up fast. I know that, going into college, I will either have little to no money or already be in debt. I will probably have an on-campus work study job which will pay directly into my school account (for books, meals, laundry, etc.), so I won't have that much spending money. With a credit card however, I know that I will feel like I have money and, like so many before me, will probably succumb to point-of-purchase impulse buying. I don't get paid in cash so I rarely have money lying around. But having a credit card in your pocket is like have a wallet full of money, a bottomless cornocopia of cash. Alas, that's not the case.
Despite the problems however, in today's society, credit cards are a must-have. Debit cards may be a better idea and a person may use their debit caard 90% of the time, but it's always safe to have at least one credit card. The biggest reason is for emergencies or times when someone needs to make a large purchase or use a large amount of money. If I have a car and it breaks and I need to get a new one, I may not have the money for it, but with a credit card I would be able to "buy now, pay later." I know that it's always a good idea to have a resource for money because you never know what you might need it for.
Honestly I dont think I could control myself if I had a credit card. If i were to get one, I would have to get one with a low limit so i could pay it off easily. One of the problems in todays society however is that we have one of the biggest mounting credit card debts in the world.
ReplyDeleteAnother thing that makes credit cards essential is the internet. Credit cards are the easiest way to buy stuff offline such sites as amazon.com or ebay.com. There should be a limit to how many credit cards someone should have based on their jobs, their credit history, and the type of cards they have.
My concerns about having a credit card also reflect many of the views already mentioned. Over-spending, of course, would be a big concern. Knowing myself, I would probably forget to keep track of the money I spent and go into debt. I would also spend a large sum of that money on usless items that seem inexpensive at the time, but would eventually add up to more than I could afford.
ReplyDeleteThe interests rates on credit cards are also a big concern. Going into college will be a large expense in itself and interest rates would be an unecessary and overbearing expense. I feel as if credit card companies would be charging me money I didn't have... and as Allison pointed out in her nice little schpiel ... instead of building my credit up, not being able to pay my bills would destroy it. Personally, I'd rather carry around money then be burdened with this expense.
However many the drawbacks, credit cards are a necessity in today's society. They allow you to pay expenses imediately when money may not be readily available to you. They also build up credit so that you can take out loans, which are ,in fact, a necessity for the college bound senior. Although I dislike credit cards, I know that i will get one within the next year. It will be essential for me in college when I no longer have my parents there to hand me money. Obviously I am going to have to be very careful about using my credit card.
www.youtube.com/watch?v2tcllYDYbIo
ReplyDeleteWell my biggest concern is to try and NOT turn into a bafoon that has 38 cards. My hopes are to keep the amount i have in my wallet down to a bare minimum, anywhere from like 0-2, but preferably none. I am swarmed by a family with absolute terrible credit and i would love to be the break in the chain. Also i guess i want to throw my secondary concern out there, if and when i have card(s) i will be sure to be right on top of payments to do my best to keep interest rates down
ReplyDeletethis is basically all i have to say, so peace otu... one love
Jonny Boy y'all
My concerns about credit cards is paying off the money that is spent on the card. If something happens like loseing your job you wont be able to pay back the money and go into debt. getting a credit card to begain with is also kind of hard becouse you would have to have credit to get a credit card. intrest rates kind of suck alot of the times it could make whatever your buying more than it would to just save up and pay for it out of your pocket.
ReplyDeleteCredit cards are also good in a way. credit cards help you get a good credit score if you take care of it propuly, also having a credit card is good to help you get the things you NEED but can't afford such school books.
I think credit cards are a positive addition in today’s society. They are a privilege that opens up a range of new possibilities from things such as paying for gas at the pump to buying items with money you don’t have. This privilege can also turn against those who take advantage of it or don’t know how to control themselves.
ReplyDeleteI share most of the concerns already discussed, like growing interest rates and paying bills. One of my concerns is identity theft. If I lose my credit card I run the risk of identity theft and when I’m away at school I won’t be able to deal with the troubles the come along with that. I would feel much more secure holding the money that I have in bills and change and not holding a single card with access to every penny I have plus money I don’t have. Another one of my concerns that borders issues like keeping track of what I spend is shopping online. Shopping online makes spending money so much easier than going out and holding each thing I am going to buy. I feel that I would spend over my limit with a credit card if I were to shop online as apposed to going to each store and seeing the each product by itself. My last and broader concern is the amount of responsibility that comes with a credit card. When I am a college student and living alone on campus I am not going to want more responsibility than what I am already given. I would prefer going to the bank to get money that is essential and not dealing with bills and interest payments at the end of the month.
There are limitless possibilities with a credit card and benefits that come only with credit cards. When you use a credit card you can buy almost anything on the spot without much thinking. If you are smart credit cards can be useful for things like building good credit when it might be tough to get a loan. They even teach responsibility and organizational skills necessary in college that most college students don’t have. With a credit card there is no waiting for change or counting money, you just swipe the card and leave. This can put ease on those always in a hurry or those who stress counting exact change and have huge wallets with a pound of change weighing them down. If used correctly, credit cards can make life much easier in college and I plan on getting one at some point while at college.
I think credit cards are a necessity in today’s economy if you are smart and responsible. New technologies, like the payment method where you can just touch your credit card to the machine and go, provide speedy payments that can help in a busy person’s life. Good credit isn’t something easily achieved, but if you are smart with your credit card you can make life later on much easier.
You guys are doing a nice job realizing the pros and cons of establishing your credit. All of you are correct in assuming the importance of having great credit to pave the way for future economic success in life. Be sure to play off of each other's comments. Respect credit cards, but do not be afraid of them.
ReplyDeleteConcerns of credit cards are that you could kill your credit for life. You also could end up spending way more money than you would if you had to pay in cash, because I have heard that actually seeing and feeling your wallet diminish as you buy things, makes you guiltier about all the money you are spending, making you spend less. With plastic, you don’t get the same experience so you might just keep spending money, even if you don’t have the money to spend. It’s not the credit card’s fault. It’s your fault for being stupid and living beyond your means.
ReplyDeleteThere are lots of benefits to having and purchasing with credit cards, you get rewards when you spend on certan cards, you can end up gaining a lot. Also you don’t always have to carry a ton of cash on you, potentially getting robbed and not able to get it back, most credit cards have identity theft protection so if someone dose steal your identity, the company won’t charge you for their purchases. Also you can buy stuff online, which is sent to your door, so you don’t actually ever have to leave your house ever again!! Yea!!!
I know that when i go to college there will be objects I need to buy, but cannot afford. This is why I will apply for a credit card. My concern is that my purchases will go from what I need to what I want. This is why I wil not only write down how much I spend on my card, but what I bought with it. Being able to buy the things I need and pay the bill later is good when I am low on money and need time to save up for buying collge books.Credit cards can work in my favor if I am responsible and careful with the use of them.
ReplyDeleteA huge concern that I have with credit cards is the marketing. Credit card companies tend to market their items in college environments because they know that college kids have very little money, and a credit card seems to be ‘free money’ because of the sales pitches. When I go to college, I’ll probably have a minimum /just-above-minimum wage job, and the idea of having a credit card will sound tempting. Unfortunately, using a credit card unwisely can lead to insane amounts of debt, a bad credit report/history, and other issues.
ReplyDeletePlastic money seems like a decent enough idea though. Not having to carry cash, not having to worry about whether or not I have enough cash on me, that would make life easier. Building up a good credit history is a good idea too, that way if I need a loan for a house, I’ll be more inclined to receive the amount I need. To be honest, I doubt I’ll ever use one, except in a situation like that. My parents have rarely used theirs. They’ve always been good about putting money into savings and avoiding debt. I feel like if my folks were able to get through without using credit cards in excess, why can’t I?
It’s difficult to avoid the ease of plastic money, but I feel like paying back credit card debt and hidden fees and interest seems like such a huge hassle, when I could just save up the money. I’ll probably use a credit card when I have to pay for college text books, or if I’m thinking about living off-campus in an apartment, when I need/must buy furniture and things. That way I can purchase something I absolutely need, nothing excessive, and pay it back ASAP. For other purchases I'll use cash, or a debit card. I'll still have to be just as responsible with keeping track of my spending and my checkbook, but I'll be spending my own, real money. The credit card might be tempting but if I don’t need a new car, or TV, or whatever it may be, right at that moment, I should just save up the money and pay for it for real. Waiting till I have the money in hand won’t kill me.
The major concern I have is that I may use the credit card irresponsibily and not really think about what I’m buying or how much I’m spending at a time. In addition I fear accumulating a large amount of debt which could strongly affect my future credit. I may not be able to pay the monthly bill, which would eventually turn up on my credit history report. I understand that building up a good credit history is essential for important future financial moves, like car or bank loans and therefore I dont want to lose credit by overspending and not being able to pay back the money.
ReplyDeleteOn the other hand, having a credit card while in college would definitely be more convienient since I wouldn't have to constantly carry around cash and I could purchase my books, supplies, food, etc. It would also be a comforting feeling to know that I have the money for school supplies, gas, and for emergencies.
After we graduate high school, we will all be faced with many different responsibilities such as work, homework (if we choose to go to college), balancing a social life, and of course managing our own money. For students in college, there is often pressure to go out and spend money with friends. Many freshmen in college do not work and if they decide to get a job, it may take a while after they become settled at the campus and familiar with the town. This leaves many students with little to no money. Having a credit card could solve this problem very fast, use the plastic and pay the money back later. This form of payment is very convenient for mostly everyone and it raises your credit score making it easier to take out loans. Also, things can be purchased online and credit cards can also be used as a security deposit. Although these things may be beneficial at the time of payment, there are still payments that need to be made to the credit card companies. Students already have to pay for college and may have student loans to back so when credit card debt is added, with interest, it could cause a lot of debt for one person. Interest rates are also usually pretty high, making the amount of money you need to pay back a lot more than the amount that was originally paid. Credit cards can also be stolen and charged with money that was never meant to be spent. All these things could easily put someone in uncontrollable amounts of debt which is something nobody wants. If people are choosing to have a credit card, then they need to make smart decisions when purchasing things so that they do not encounter the problems that people are facing today with debt.
ReplyDeleteCredit cards can be your best friend, or can be your worst enemy. If you can establish a good line of credit and pay things of in a timely fashion, it can help you in the long run. My brother is trying to buy a house right now, but hasn't established too much of a credit line. Because of that, the bank is hesitant about giving him a loan. Credit cards are convenient and are definitely helpful in this fast paced society. But, people also have to be careful when it comes to using their credit card. It can be so easy to just pull out a card and swipe it instead of sorting through bills or change. Where the credit card companies really get people though, is in the interest rate. People end up paying absurd amounts of money in interest, which can be a huge issue, especially for students starting their college careers. With credit card vendors on college campuses, students may get pulled into using a credit card that would push them into even more debt after college is over. However, if students can start using credit cards at a young age and start off small, they will be better off in the long run. Credit cards are definitely an essential part of todays society and need to exist. If somebody was buying a $1,300 TV, they probably wouldn't feel comfortable bring that much cash to a store, nor do most people have that money just floating around to begin with. If they charge it to their card, they can make payments on it over time. But again, it's those interest rates that kill people. A good game plan is to start of early and to start off small. Don't go out of control. Set a low limit on the card and try not to use it too much. Also, make payments on time or ahead of time to establish a good line of credit. You need a good line of credit for your future, so you have to make yourself look good in that aspect and build a reputation for yourself. Credit cards are great when you use them wisely, but if you don't just use it for essential purposes or just use it and don't keep track, you could end up in a situation you may not be able to get out of for a while. If you do end up in that situation, the best thing to do is to try to get out of it as soon as possible, and not hold it off or continually cover it up.
ReplyDeleteMy biggest concern with having a credit card is the fact that I am using money that I don't have and that I won't be able to pay back. When I am in college I will have no source of income so having a credit card would not be a good idea. I am also not very resposible and organized so keeping up with bills would be difficult for me. I really dont want to be in debt so I would much rather stick to cash or a debit card.
ReplyDeleteThe good thing about having a credit card is that it comes in handy for emergancies. If my car needs gas but I have no cash or money on my debit card then I would use a credit card.
Credit cards prey on students because they depend on them not to make their payments on time. They will mess with the interst rates and probably make it impossible to pay. A main concern of mine is that I won't be able to make the payments. If you miss a payment your credit score will not be as good as it could be. I am not an over spender but I am a procrastinator. I'm also scared that by not being able to pay the payments I will go into even more debt, added to paying back student loans that I may accumulate. I am planning on trying my hardest to stay on top of my spending, though, and being responsible with a card.
ReplyDeleteI know that a credit card is now needed to buy a house and a car. People use your credit card history to determine if you are responsible with money and if you pay money on time. I will use my card for little things that I know I will be able to pay back, such as food every once in a while, gas and probably books. Having a good credit history will benefit my financial life in the future.
Credit cards, one of the most amazing privileges as a teenager to use one, yet this same card has been blamed for the economic crisis we are enduring now. Yes there are some positive attributes to plastic money, such as cash-back programs and rebate systems. But it is far too easy to become in debt.
ReplyDeleteThe number one concern for credit cards is becoming in debt. Being in debt is like climbing up an icy hill with bare feet, you almost never come out on top. High interest rates and irreparable damage to your credit file are constantly bearing down upon you. In 2008 it was recorded that credit card debt had reached $1,000,000,000,000.00. Once you miss even a few payments on your credit card it is almost impossible to get out of debt. Another disadvantage to using a credit card is the lack of emotion to the money spent. For example buying a video game with a credit card for $60 feels entirely different than dishing out three $20's. This sense of money being physically spent keeps us responsible for the money we have.
Personally, I would like to only have 1 credit card and 1 debit card. Debit Cards are much more safe then credit cards because with debit cards you are paying with money you have, not with money you will get in the future. In college and in the future most of my purchasing will be with my debit card while the more expensive go on the credit card.
The main concern about credit cards is that you will overindulge the first time you ever use it, and spend money you do not have. Credit card companies assume this will happen to most young adults so they inflate interest rates umtil they are so high that it is nearly impossible to pay back money you spent. This could force a person to eventually declare bankrupcy or somehow destroy their credit some other way which would make future loans from banks nearly impossible to recieve with good financing which could mean that you can't buy a new car or house. My main concern with getting my own credit card is that i will overspend the first couple times i ever use the card becuase i lack self control when i can spend just about as much money as i want to. This is a huge concern of mine as it could ruin my future loan options. I don't feel comfortable with owning a credit card until i have a steady source of income so i know that i will be able to pay back my bills. For that reason I feel that I will probably not get a credit card until I am out of college, or at least have a job.
ReplyDeleteThe benefits of owning a credit card are always present though. Not needing to carry around cash, or ever have to stop at a bank or atm to make a withdrawal is a huge time saver. They are also very usefull in emergencies when not having a credit card could spell trouble. Also using a credit card wisely in the first few years of owning it can establish great credit that can cause the interest rate on your next loan to be extremely low saving huge amounts of money.
I feel that credit cards can be very usefull but also are a huge responsibility. One or two expensive impulse purchases you are not able to pay back could ruin your credit which would stay with you for life. However using the credit card sparingly, and always paying back your loans, can produce stellar credit that could save you a lot of money when you need to take out your first substantial loan for a first house or car. I feel that the benefits of a credit card outweigh the negatives as long as you heed the responsibility the credit card holds and are aware of the ramifications of not paying back your loans.
America is too dependent on credit. Sure, good credit is key to being a succesful member of society, because you'll have better luck getting loans or mortages. But buying on credit is in my opinion a crutch for society as a whole to be able to have the power to spend however much they want, regardless of how much they make. Credit cards use this as a tagline to get people to sign up for cards. Little do people know, you actually have to pay back what you buy, and almost always with a significant amoutn of interest. People defend them saying it's safer than money, but it's really not. They also defend them by saying they offer rewards and rebates. People never become wealthy off credit card rewards, it's naive to say the only reason you have a card is for the 10% you get of a television set. People also say its convenient because they don't have to carry around hundred of dollars, all they need is their card.
ReplyDeleteWhile there are definite postives to cards, the negatives imply outweigh them. Say someone buys a pair of $60 sneakers on credit. The interest rate is about 25%. The end of the month comes, and you don't have enough money to pay the bill. Those $60 sneakers went from being just $60 to $75. The interest builds daily to the point where you can't pay the bill at all. Now you're in debt. People buy cars, major appliances, television sets, and other large tickets items on credit, much more expsensive than $60 sneakers. Sometimes after the first missed payment, the interest alone drives the bill up to an amount you'lll never be able to pay back. Also, people are introduced to credit cards at a young age, like Josh and others have already said, they target college students. Their accumulated savings and income can't cover the money they spend, and they're spiraled into debt at a young age. And to that point, credit card companies will raise the credit lines if a person comes close to maxing out. it's strange that a person with an income less than $20,000 a year can have a credit limit of $10,000 dollars. They obviously will have little or no ways to pay it off.
One of the biggest problems with cards is identity theft. A persons social security number is attached to the credit card, meaning that your SS number is saved automatically at any place you make purchases with your card at. Sure, a card *can* be safer than money, but i'd rather carry around my money than have my identiy stolen by someone who'll be maxing out my card for me.
And even though the U.S is a free market economy, how come the government hasn't intervened with the credit system? Buying on credit is what drives millions of Americans to debt. That's millions of American's that now are up to their eyeballs in debt because the governement never bothers to regulate what goes on with credit cards. There should be a definite cap on how much people buy on credit, as well as a cap on interest rates.
I just think credit cards are evil.
With the new generation of credit and debit cards money is becoming increasingly inconvenient to all ages. This is why many people explore the option of a credit card.
ReplyDeleteTo me the benefits of having a credit card are that it is convenient to always have money, it eliminates the worry of losing money, and it is a way to build credit for future needs such as loans. Also some credit card companies give incentives for using your credit card.
Although a credit card is convenient it comes with many problems, especially for teenagers. First off, high interest rates on each purchase using a credit card can be a way to fall into debt quickly. Credit card companies are beginning to target teens more because they have a better chance of not paying the credit card bill, in turn making the company more money. Another problem with credit cards is that people tend to consume more things that they don't need simply because they have a card to swipe. I know before I received my ATM card I spent way less money, and an ATM card is not nearly as convenient as a credit card. My biggest fear of owning a credit card would be spending too much money and not being able to pay the bill on time.
Overall I believe that credit cards are good for making an expensive purchase and things such as gas. With high interest rates and no government regulation on those rates I think the credit card will become increasingly expensive. I think the problems outweigh the benefits and credit cards should be used only by a stable and responsible consumer.
A big cocern with credit cards is that too many people overspend and rely on them. People need to learn to handle them and be responsible at an early age so they can avoid ugly credit troubles later in life. People also have to realize that there are multiple fees involved with owning a credit card like finance charges, annual fees, and late fees which can lead to higher interest rates. If your smart and dont overspend a credit card can be a useful tool and can help you build up credit and make life easier.
ReplyDeleteSam I
ReplyDeleteThe thing I am most concerned about in getting a credit card is using it and not being able to pay off the balance in full monthly, thus accumulating more and more of a balance that I cannot pay off. This is because of the high interest rates that compound monthly.
However, in this day in age, I feel that credit cards are needed because the modern world is so fast paced. Paying by cash or check is much slower at the register than paying by credit card. Therefore, paying by credit card, which you simply slide through a machine is much faster and more practical. In addition, more people are buying items on line. In order to purchase things on line, you must have a credit card number. Finally, it is safer and more convenient to carry a credit card than it is to carry a wad of cash. If stolen, you can cancel the credit card, but if cash is stolen, it is gone.
There are many different pros and cons to owning a credit card. At a young, and perhaps less disiplined, age there are obviously more cons then pros. The major detriment to owning a credit card is the fact that it makes purchasing too easy. The phrase "money burning a hole through my pocket" applies to you wanting to spend your cash that you have at your disposal. However with a credit card, you are burning a hole through your bank account. Oftentimes people, especially students, do not realize that their unnessasary spending on frivelous "wants" is sapping them and their parents of money. Students need to realize the difference between wants and needs if they are to be financially responsible with their credit cards.
ReplyDeleteDespite the large quantity of cons to credit cards there are some pros. If you are self-disciplined, it makes purchasing much easier. Without the handling of cash, you are able to have more money, less clumsily. Also you are able to purchase things you wouldn't be able to before online, making shopping all the more easy to everybody.
Credit cards are an inevitable addition to society. The only negatives come from the inability of people to manage their money. If a person is careful and keeps track of their finances, credit cards can actually help you gain money, as a good credit score will save you money on loans. While some people will cringe at the thought of giving up the habit of naming off the presidents on the bill as they hand them to the cashier, more practical people will take advantages of all the benefits credits cards have to offer.
ReplyDeleteCredits cards are essential in the ever-growing online market and provide a way to heave oneself out of potentially problematic financial situation. People with credit cards also don't have the worry of counting bills, managing hard cash, and dealing with meddlesome pocket change.
However, some won't be able to overcome the aesthetic value of a dollar. There's a certain feeling that one gets when thumbing through a stack o' jacksons, one that can't be replaced by swiping a plastic card through a plastic machine. For those who are inept at handling their finances, the dollar offers a natural spending cap, as a person may only spend as much as what's in their pocket.
Overall, some will embrace the modern value and responsibility of a credit card, but others will miss the physical touch of a once tender lover...
I feel that credit cards are a major part in peoples lives. Every adult has a credit card for one thing or another. Weather its for the reward points that some give out, or just for online or large purchaces. I feel that if a person is taught how to manage money and manage the credit card it could be a very useful tool. The fact is that some people dont learn how to handle their expences and end up spending way more than they actually have. It all comes down to money management, People who do it right, have a great tool at their use, but people who dont know how to use it have a tool that is capable of ruining their lives. The credit card could potentially put you in a life long debt or it could buy you wonderous things.
ReplyDeleteSome concerns i have with getting a credit card is the high intrest rates. A credid card can be very useful when you dont feel like carrying a lot of cash on you. You can use the credit card to make expensive purchases.
ReplyDeleteThe credit card can also be bad for you. You may overuse it and get into debt. Its easy to buy things with a credit card because you dont see how much money you a losing. But when you get the bill you may be surprised by how much it is.
Credit cards are very useful when they are used correctly. With some you can earn rewards points but you muse spend wisely or you could fall into debt.
Credit card companies often get a bad reputation for charging ever increasing amounts of interest on loans. This criticism avoids the real reason for the rising debt in America, the inability of Americans to manage their money. As the average credit card debt per household skyrockets, the question arises: who is most at fault? The credit card companies for charging exorbitant amounts of interest? Or the consumers who are not able to manage their debt and pay back what they owe?
ReplyDeleteIt is always easy to blame the big bad credit card companies for the rising debt in America, but the truth is that those consumers made a choice when they opened up their first credit card. They chose to accept the terms set out before them by the credit card companies. With all of the talk of how evil and manipulative credit card companies are, one might think that credit cards were falling out of favor in America, but as thousands of new credit cards are opened every day, credit card companies are given no reason to change their policies. Until they see a decrease in profit, what incentive do they have to alter their way of doing business?
This being said, not everyone who is in debt got that way by making bad decisions. There are people that are in debt because of a little bad luck or a rough patch in their lives. I am still confident that when I get a credit card, if I use it wisely and how it is intended to be used, there should be little fear of becoming overburden with debt.
The main concern I have about having a credit card is forgeting to pay back and getting into debt. You can be in debt very fast if you don't pay attention. Another bad thing is that you have to pay back interest rates. If you are not responsable than your interest rates will go way up and you will be paying high costs. Other than that, if you are responsable it can be a great thing to own. Some of the benefits to having a credit card is purchasing things online. You cannot use cash or checks to buy things online. When used correctly, you can get benefits from the company. People who use the credit card can be very successful in using it, but you have to careful when using it.
ReplyDeleteAshley F
ReplyDeleteCredit cards are often seen negatively for charging high intrest rates and annual fees. However credit cards also have many positives. Credit card companies offer incentives like air miles, cash back bonus rewards and free offers for signing up for a card.These offers are great incentives when you make charges on your card and pay them back immediatley. Unfortunatley most people dont pay off there cards right away leading to high intrest rates and debt.When credit cards are used properly they are a great thing to have
A big concern to have about credit cards is the fact that if you mess up once with them your in a hole for the rest of your life and there is nothing you can do about it. Meaning that you'll have to pay extra for stuff, yea credit cards are beneficial in the fact that they're safer than carrying around cash in ur pocket. but then agian with all the credit card fraud out there and the bills you have to pay I'd rather just use checks or somthing Credit cards just seem evil to me.
ReplyDeletekyle k says there are a lot of pros and cons to having a credit card. You can get things you need or want in advance when you dont have the money right away. This helps thousands of people every year during the holiday season. This makes it easyer for everyone to enjoy themselves and not have to worry about the stress of paying with your cash. At the same time it helps you it can hurt you. IF you miss a payment or get carried away with your spending you can find yourself in serious trouble. You will have bad credit for the mojority of your life making things more expensive for you than everyone else, this leading you more into debt. It is easyer to use, making it easyer to spend the money. When you getting carried away with credit cards you end up getting more credit cards and start piling up debt to your eye balls. In the long run credit cards are not the way to go.
ReplyDeleteWhen having a credit card, you can buy products or services without using money to pay. When you use a credit card, you have to pay interest for the amount of money that was charged on the card. Some bad reasons to have a credit card at this age is that if you overuse the credit card yu an get yourself into debt that can stay with you for most of your life. Although having a credit card can be good thing too. It can have some benefits such as giving awards for good payments, or helping to get loans and getting out of emergencies. Some people make the worst mistake to use the credit card without having the money to backup the charges made. I believe that it is important to have a credit card, but to be smart with it. Credit cards are good things if you use them correctly, but they can be dangerous.
ReplyDeleteNeither of my parets have credit cards, they both see that they are unnecessary things to have that cause credit problems and money issues. However, my grandparents do have credit cards and they keep a close eye on their expenses to avoid debt and money problems.
ReplyDeleteI can see both pros and cons in having a credit card, however i think that the cons outnumber the pros. Having a credit card is good because you don't need to carry around cash, which is a more safe way to be. Also you will be able to purchase more expensive items and it makes online shopping much easier. However, the more things you buy, the more likely it is that you are spending money that you do not have. The likeliness of this increases which could put you into a longtime debt for paying off the money that you did not have in the first place. Also, the more you spend on the credit card, the more likely you are to get multiple credit cards causing the problem to reoccur.
Although some Americans are directly responsible for their own credit debt, this is not always the case. Credit card companies raise rates to the point where it is not possible for some Americans to afford to pay them back. This leads to debt that builds up and gives bad credit.
ReplyDeleteEach of my parents have one credit card that I can use if I would like to purchase something online. I don't want a credit card, even after i get a steady job because of how difficult it could be for me to manage. A debit card would be a much more practical option for me.
some concerns to having a credit card are, alot of people use them when they're short on money so chances are that they won't be able to pay the bill and this would put them in debt. but the pros would be, you could use the credit card for emergency money if you don't have any on you as long as your not spending money you can't pay back.
ReplyDelete-jerika
I think credit cards are good as long as they are used wisely. I plan on getting a credit card but i will have one with a low limit and pay it back on time so i can start to get good credit. Also the perks that come with credit cards could be good.
ReplyDeleteAfter watching that movie on credit cards I think the companies are harsh and unfair. They want people to fail so they can make more money. I will try to stay away from more than one credit cards.
Credit cards............yeah
ReplyDeleteCredit cards are a very handy tool when used responsibly, but if it is use inappropriately it can create a lot of hard aches. When I turn 18 I plan on getting a credit card to build good credit. Some concerns I have about getting a card are the hidden fees and the unfair advantage the company has with its play of words. Also the fact that the company can change its fees to whatever way pleases it. Some benefits to having a credit card it that it I don’t necessarily have the money to make a purchase at the time I can use the card and pay for it on a later day. Another benefit is that it can be used to build up a superb credit score if one pays their charges off early or on time. I personally feel that a credit card is a lot of responsibility and that only smart people should attain one.
ReplyDeleteI think credit cards can be a great thing if your responsible with them. If you strictly use them for necessities and dont spend more than you can afford then your good. But if your going out and buying stupid stuff like rolex watches then your in serious trouble. I would get a credit card but i would also make sure to keep my payments up like bill stein did so that basically i wont even pay interest. I would be the "dead beats" the credit comapnies talk about in that movie.
ReplyDeleteCredit cards can be a blessing and a curse. They allow someone to establish credit with a bank and if the credit card is paid back then the credit will be good. If the credit card is used to buy expensive goods that can not be paid back within the first one month then intrest can start building up and before you know it a person can be in 10's of thousands of dollars of debt.
ReplyDeleteAs long as they are used responsibly credit cards can be handy tools to transport and spend money with. They can be used to make big purchases that you dont always have the money for or can be used in emergency situations where a large sum of money is needed right away like medical bills. Though they do gather intrest quickly so they need to be paid off soon or this can lead to debr as well.
It does appear that credit cards get the good end of the deal in the contract. The ability to change the terms when they want no matter the say of the other party seems a little underhanded so it is always best to be careful with them and treat them with the responabilty that comes with large amounts of money.
Credits cards are a great thing to have if your in a tight spot, but unfortunately the temptation to use them when you want something is too great for many indviduals. I, myself, hope to only need one, mostly for an emergancy or for certain luxuries that can't be paid for in straight cash anymore, like renting movies.
ReplyDeletePersonally, I'm of the opinion that if you don't have the money to pay for something and you can't make out a payment deal that you can afford, then don't buy the object. It might be old-fashioned thinking, but for someone who doesn't actually own much, I don't want what I have to be just rented to me, or taken from me.
Credit Cards are a great convieniance to have being a modern consumer. I own a visa card right now and if I didnt calculate how much i can spend a month within reason I would be buried in dept its definatly something you have to contol and watch closely. I belive if the cardholder is responsible enough there isnt many concerns with owning the card. my concern is mainly with people who use multiple cards and get jumbled up in the confusion of multiple bills.I find when I have one card i can keep track of it and not get off track. The benefits to a credit card consist of discounts at certain stores when you use it sky miles and other perks that make the consumer more likley to not only buy the card but shop at the location where the card ofers perks. In addition to perks alot of things are only availible online and without a credit card most online vendors wont sell to you so having a credit card is crucial to the online shopper. so basicly i think that having a card is important if you are in places where u use it alot like gas for the car and if watched closely can be a great tool for financial responsibility.
ReplyDeleteI would get a credit card probably after college. I know that if money got tight at any point, and i had a credit card, I'd be tempted to abuse the use of the card and just buy whatever I thought I needed. Because of this, credit cards seem like they would be most useful when a person is in an already stable financial situation. My parents have a credit card with a decent limit that they pay off every month. Because they never owe, their credit is very good which helps them when they get a new car or need a loan.
ReplyDeleteThis is how I'd like to use a credit card instead of using it "for emergencies only". I agree with Billy when he says someone can be responsible with one card and keep track of it. I'd rather just not take the chance until I know I'll be ok financially with or without the card.
I think people shouldn't have more than 3 cards, because too many people are playing with money that they don't really have. They complain that there are too many payments to make on cards, but then they insist on using that card and staying with that said company. I prefer cash because it's simple and there are no hassles besides losing what was in your pocket the day before.
ReplyDeleteWhen i set off to college a credit card will be a good idea for some obvious reasons. But on top of having a credit card and the downfall of being able to borrow money when i need it, is i am going to be sure i never miss a scheduled payment. The best part of always borrowing and repaying money lended by the government is if i am consistent with paying back, then my credit continues to rise and i wil be getting a bunch of reward miles for vacations which is well worth it. i just have to never get in a hole with more than one card or too many purchases to handle. Thats another reason why i am going to stick to one card that is completely payed off at its deadlines.
ReplyDeleteThere are obvious reasons, both pro and con, for having a credit card as you enter into college and move forward in life. One obvious reason to have a credit card is to help pay for bigger things that you may not want to pay cash up front for. Also it is also more convienient to carry a credit card around then to carry a lot of cash on you. In certain cases is might also be safer. Another reason that it is a good thing is that it builds up your good credit and it can show that you are responsible and that banks can trust you with borrowing their money and they know you will pay it back.
ReplyDeleteOne reason it may not be a good reason to have a credit card is becuase if you are not responsible with the way you use it and if you don't pay the money back on time it will damage your credit and then when you get farther in life you will get hit harder with interest rates on many things. If people can handle them and take responsibilty for it then credit cards can be a good thing. But in college you are more willing to just spend money on things that you really dont need and use money you dont have just becuase you have a credit card. Teens and college students don't usually think about it in that prospective but if they dont they will end up ruining their credit for life.
Credit cards are good but are a big responbility. One reason they are good is because you cand get rewards for using them. Some companines offer air plane tickets and other things. Credit cards also help build your credit history. This will help you get lower intrest rates for your credit cards.When you have a credit card car, you do not have to carry cash around. This helps when you want to buy buy something big, like a car. This is why credit cards are good.
ReplyDeleteCredit cards are also can be bad. One reson is that people abuse them. People think they are plastic money so they buy everything with them. They get in trouble because they can not pay back the money they put on the card. This is why credit cards are bad.
A concern that I have about getting my own credit card, right now, is if I could pay off the bill monthly. I had a job in the fall, but I do not have a job currently, so I do not have a regular income to pay the monthly bill. I also would not have a great credit score when initially because I have not established a credit score. This would cause my interest to be higher while starting out. If I was to miss a payment for my credit card because I did not have the money to pay I would not establish a good line of credit. I would also think that there would be a possibility that I would be using the card with no means to pay the bill in the long run.
ReplyDeleteA benefit of having a credit card is not having to carry money around with you, but a debit card can also be used in this way. Another possibility is if you are payed every two weeks and you do not have money for those two weeks you can proceed to pay off the credit card bill when you receive the paycheck. This allows the consumer to pay for things while they do not have the money. As long as the credit card is used knowing you will have the money to pay the bill, they are useful. In some cases it is also more convenient to use your credit card. For example at gas stations now, when paying with cash you have to go into the stoor and give them the money, but if you use a card then you can just swipe it and fill the car up.
Concerns about having/ getting a credit card include a fear of spending money I don't have, and not being able to pay back the fees I would owe as interest and bills accumulate. It's too easy to use a credit card in between paychecks, when you think you'll just be able to pay it off as soon as you get paid, however you never know if you'll lose your job, or if you'll need to spend that money on other things, such as groceries, rent, medical bills, etc. It's just a short term solution to a long term problem.
ReplyDeleteA credit card can be very usefull when in college but also can turn into a disaster if not used wisely. Personally i think i could handle a credit card in college because i am very good when it comes to saving money. I know how much of a problem it can turn into if you spend to much. The problem is that it is so easy to just hand the card to anyone in order to pay for something. A credit card is spending money you dont have so you are more likely to just buy with it.
ReplyDeleteMany Benifits also come with using a credit card. If you are very good with your money and pay all your debt back then you can have a good credit score which can be a help later in life. Also it is much easier to carry around a simple card to use for things such as grocerys rather than carrying a bundle of cash everywhere. In my opinion a credit card is terrific as long as you can stay safe.
My concerns of getting a credit card are spending money that i dont currently have , and not being able to pay it back . A lot of credit card companies prey on college students because they know most of us either have a a low paying job or none at all, and we are most likely to not pay attention to how much money we spend until the bill comes in the mail.
ReplyDeleteBut there are many benefits of having a credit card as well , such as not having to carry around money and building up a good credit score . I believe if you are able to be responsible with a credit card and only spend as much as you know you can pay back than a credit card would be a good idea for you.