Assuming you have the discipline to not carry a balance on the card then, yes you can make it a good financial decision. CC companies make their money (from the user) off of late fees and finance charges (like 19-29%). However, if you use the card to make purchases you would have made anyway (food, gas, utilities) and will then pay off the entire balance each month you are fine. Better than that is to get a card that pays you some sort of rebate program (cash back, airline miles, etc.). Since you are new to credit and don’t know how best to utilize rebate programs, I would suggest a straight “Cash back” style. Typically 2 or 3% of your purchases credited back each month. Just don’t, and I mean never, carry a balance. This will eliminate any cash back advantage. Oh, and make sure the card had no annual fees either.
RiddicBowers t1_jec0xsc wrote
Reply to Credit or debit card? by SativaSunshineX
Assuming you have the discipline to not carry a balance on the card then, yes you can make it a good financial decision. CC companies make their money (from the user) off of late fees and finance charges (like 19-29%). However, if you use the card to make purchases you would have made anyway (food, gas, utilities) and will then pay off the entire balance each month you are fine. Better than that is to get a card that pays you some sort of rebate program (cash back, airline miles, etc.). Since you are new to credit and don’t know how best to utilize rebate programs, I would suggest a straight “Cash back” style. Typically 2 or 3% of your purchases credited back each month. Just don’t, and I mean never, carry a balance. This will eliminate any cash back advantage. Oh, and make sure the card had no annual fees either.