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

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

5% Back on Amazon purchases

I love shopping on Amazon. Does your Credit Card offer 5% cash back on purchases you make on Amazon? You could get 5% cash back up to $1500 every year on your purchases on Amazon. Chase Freedom Card offers 5% back on rotating categories every year. During April to June this year, the category included grocery stores as well as drugstores. This means that you get 5% back on every purchase you make at participating grocery stores as well as participating drug stores up to $1500. You might think, what does Amazon have to do with grocery & drug stores? Everything. Many grocery stores and drug stores sell gift cards for different merchants including Amazon! It's Simple. During the Grocery Stores and Drug Stores category, go to Meijer or Wal Greens near you and stock up on Amazon gift cards! Then redeem the gift cards on your Amazon account and spend it on your Amazon purchases. Since you got 5% off on the initial cost of the Amazon gift card, you are

We were featured!

Check out Million Miles Secret!

Simple MIles

Search This Blog