What's your thought about credit cards? Do you consider them a banking fraud, just to trick you to spend money you don't have, or a useful tool if used correctly? Do you have one yourself? In my case, as a student, I was issued a university card, which features a low yearly fee but also a considerably low credit limit. However, I often use it to pay bills in interest free installments (Car insurance for instance) and my gas expenses, which provide a decent cashback (I'll fill up my car once or twice a year for free).
On the other hand, there are quite a few shops here that also offer interest free installments, that way, I was able to purchase a bicycle for my girlfriend, when the budget was quite limited.
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?
If you don't know how to handle money properly whatever treasure you have within a few days it's going to vanish. So credit card, loan, etc everything has both advantages and disadvantages. All these are help us to overcome some crucial phases in our life but don't allow them to trap in there.If you don't control your expenses well it's gonna be bad for you. If you not pay your credit bills on time your credit score will drop and charge a huge penalty and interest.We should clear about our income and expenses and must know the basics of handling money. I am not against credit card but using everytime, even buying a petty things, I don't think that's good. Credit cards a scam or a tool? You can only get an answer from your own personal experiences.