Making Sense of Cents recently posted an article about things to never put on credit cards. Here’s a review of her never-do list:
- Wedding expenses.
- Medical bills.
- College costs.
- Down payments.
At one time or another, I’ve used credit cards for all of these things and much more. To be honest, who cares what you put on your credit card. I think the important thing is to pay it off – period. In my book, credit cards can be better than cash. It’s the fool with a tool you have to worry about.
Credit cards can make life convenient:
- They can offer protection against theft or fraud.
- For travelling and accommodation purposes, most companies will not take a reservation without one.
- They can offer a good way of keeping a detailed record of your spending.
- They can help you build up a (good credit) history for future transactions. Certainly cash can’t do that.
I can’t imagine my life without credit cards. I’ve used them to reserve a hotel room half-way around the world. I’ve bought concert tickets. I buy gas for my car every week on a credit card. Credit cards can be an excellent money management tool if used wisely. Just don’t be a fool with a tool.
(Disclosure: no credit cards were harmed by this post but consumer spending habits might have been. If you’re struggling with debt please consider consulting with a financial professional.)