Are credit cards dangerous for low-budget people?

My earnings are pretty low and i have just applied for a credit card…Is it beneficial for me or dangerous because my budget is not high.

Answer #1

It depends on two possiblities.

  1. You are a “creditable” person. If you buy somthing from your credit card, you pay it IMMEDIATELY. The only reason you use your credit card is not with the attitude “I’ll pay it later”, but with the attitude “I just wanna use this, so I don’t have to carry the spare change”. This means that as soon as you get your bill, maybe even before the bill comes, you go pay it. In this case, your credit is going to be very good. You should be able to improve your credit score, which is essential to buying a house (with low income).

  2. You are something not in paragraph 1. If you do not know how the credit system works, or do not know how interest works, or how fees work, or how to pay bills over the Internet, rip the credit card as soon as you receive it. If you’re also bad at paying bills (see many pastdue bills?), then just cancel the credit card.

Answer #2

I think credit cards are great as long as you pay them off. If you have the self discipline not to spend more than you earn than having a credit card is fine.

Years down the road having a history of consistant payments to your credit card will help your credit worhiness. Of course the down side to this is that even one late payment will lower your credit rating for years.

I think your best bet is to get a good credit card and learn to use it responsibly.

Answer #3

Very

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