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Only use credit cards when it serves you - and most of the time credit card use only serves the credit card companies.
Spending on credit cards is spending money you haven’t earned yet. That sounds nuts right? It means you have to work for no reward - you’ve already spent the money.
So when should you use them?
There are two reasons when they are very useful
- To protect your purchase. Due to UK consumer law using a credit card offers you additional protection if you don’t get you bought. I use mine for all online purchases and holidays.
- To benefit from reward schemes. Some credit card companies offer points schemes or cash back on purchases. This is free money IF AND ONLY IF
You pay them off in full EVERY month.
If you can’t then be very, very careful.
If you use money you haven’t earned to buy stuff you don’t need to impress people you don’t like then you should stop it. Right now.
Spending doesn’t make you happy