Quote from: famososMuertos on November 20, 2021, 09:45:37 PM

Quote from: Ultegra134 on November 13, 2021, 08:34:15 AM

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The trick on credit cards is to use them wisely, not spending more than you can afford, always pay in time, otherwise you'll get a huge interest on your balance, while at the same time, you're building a credit score.

Not really.

The good use of credit cards makes the credit limit increase the higher your payment capacity is, that is normal, it is how it should be seen, not because of the ability to borrow.

Your purchasing power does not have to be distorted by using a credit card, this are an immediate solution to a payment that due to "x" or "y" circumstances requires the use of the Credit cards or extra money that they do not have today but you must have the total payments at the end of the month, that is the key, it is a financial tool to support your ability to pay immediate.

So if you do not have how to pay the total debt in a minimum term, avoid using them, the amortization of capital is a way to reduce debt but in this type of credit it is the key for banks to subdivide the debt into payments tentatively accessible.

Well, you are right, it's a little of both. I meant that buying something extremely out of your price range and then paying it off in 50-60-70 installments isn't a wise thing to do.

Quote from: qwertyup23 on November 20, 2021, 11:55:49 PM

Quote from: Ultegra134 on November 13, 2021, 08:34:15 AM

The trick on credit cards is to use them wisely, not spending more than you can afford, always pay in time, otherwise you'll get a huge interest on your balance, while at the same time, you're building a credit score.

What's your take on this? Are you against credit card usage?

Credits cards were issued in order to purchase something that you cannot pay in one transaction and divide it into multiple transactions that has to be paid monthly or annually. Credit cards are not the problem- people are. The fact that most people purchase a product mean that they must comply with its terms. If they cannot pay it due to insufficiency of their funds, then it would definitely affect their credit score.

Most credit cards company do a background/job check before they issue their cards. Again, the problem is not the credit card itself but the people who purchase products who knowingly knows they cannot afford to pay it.

Undoubtedly, they are convenient when purchasing something of value, an expensive TV or bicycle for example, in cases where paying in advance is out of the question. I'm not implying that it's the credit cards are the issue, in most cases they are not handled properly, and that's what banks are taking advantage of.