Skip to main content

Credit Cards Myth

Some of my credit cards

1. Credit cards gets us into debt. 
  If you get into debt, that's your mismanagement of your finances. You can't blame the credit card for your choice to buy things you don't need with money you don't have.

2. Having too many credit cards hurts our credit score. 
 The average credit score in America is 695 (FICO) with 850 being the max. I have 10 credit cards. My score is at 806.
 Yet, it is true that when you open up new credit cards, your credit score will take a small hit. But your score will bounce back within a few months. Having more credit cards will actually help your credit score (Given that you always make payments on time). 

3. Paying cash for everything is better. 
It's true, you will spend more money when you spend cash rather than when you use a debit or credit card. But again, it's your choice. You could decide to budget yourself and live within the means. If you can't control your appetite, then don't get a credit card, please. 

4. Dave Ramsey says that we should get rid of our credit cards.
Context is everything. Dave Ramsey, according to my understanding, specializes in helping people get back on their feet financially. For an average American family who carry $8000 in credit card debt, getting rid of their credit card is a major step towards financial stability. Unless I forget, I never carry a balance. 

For Further Study

http://www.creditcards.com/credit-card-news/7-credit-card-myths-1267.php

https://www.daveramsey.com/blog/the-truth-about-credit-card-debt

Comments

Post a Comment

Popular posts from this blog

Don't pay for your honeymoon

Vienna with My Wife :) Hello there, I'm Daniel and I am in love with travel. So far I have traveled to 25 different countries. But since I've enrolled in graduate school and started a family, I don't have the means to travel as I used to. We barely cover rent and tuition. Yet, even if I wasn't a student, I don't know if I would like the idea of spending my hard earned money over such a short period of time. The average salary in America is around $50,000. But a 2 weeks vacation for two people could cost anywhere from $4000 to $7000. That's 10- 15% of your yearly income. I can't justify spending 10-15% of my salary in 2 weeks. But just this last May, My wife and I travelled to Europe for 3 weeks! We visited 10 countries and made unforgettable memories. It was an amazing experience. According to many of the travel blogs, our trip should have cost anywhere from $6000 -$10,000. We spent $0. Honestly. No, we did not... Sleep in hostels Campou...
Post a Comment
Read more

The Basic Set Up. Chase Ultimate Rewards

Prague. Chase Ultimate Rewards Points will take you here for free :) There are many different credit card companies that offer large bonuses for opening up new credit cards. The list goes on and on. We get lost between American Express and Visa. Everyone has their own favorite for their own reasons. I like Chase. Personally, I have found their point system to be the most efficient and worthwhile. You could choose whatever you decide works for you. Chase Bank offers so many different types of credit cards. They range from hotel, airlines and even for Disney. But the cards that you want are those that give you "Ultimate Rewards Points." They are the following, 1. Chase Freedom 2. Chase Freedom Unlimited 3. Chase Sapphire Preferred 4. Chase Sapphire Reserve 5. Ink Business Preferred [Business Credit Card] 6. Ink Business Cash [Business Credit Card] These cards allow you to transfer points between themselves, which is extremely valuable. For the purposes of this ...
Post a Comment
Read more

$3000 off your next vacation

So the summer is almost over and you are planning your next summer vacation. But with 2-3 kids it's not a very affordable idea. According to  Stuffed Suitcase , the expected cost for ONE WEEK'S vacation for a family of 4 is OVER $4300. Last May, my wife and I traveled throughout Europe for 3 weeks. How much did it COST us? $0. Seriously. It didn't cost us anything. You don't believe me, do you? Check out my other blog post to see just how we pulled it off.  Today, I want to show you how you could start working towards your FREE vacation! In order to make the most of this offer, You and your wife/husband need to do it together. There are so many blog posts and websites that explain all this in their minute details. In order to know what you are doing with the different cards, I suggest that you look into it yourself. But through it all, you need to have the big picture in mind. You need to know what you want to do so that you don't get distracted by ev...
Post a Comment
Read more