Thursday, 25 February 2016

Are credit cards evil?

Whenever I am at the mall, there will be at least one credit card person to ask about applying for a card.
When we immigrated to Canada, it was hard to get a credit card. It was same like Canadian experience for a job. You don't have credit history, you cannot have credit card. You don't have credit card, you cannot make credit history.
Once I got a job, got the first credit card from CIBC. It felt like I won lottery. 
Then, I learned about credit score and such, and became wiser. So, I am tempted not to apply for more cards. (I cancelled that one later)
Many of the get out of debt gurus suggested to cut credit cards. 
Do you think credit cards are evil? 
I was thinking that way too. Then realized they are evil when we are not paying the bills on time. The interest rate is 19.99%. That is insane!!!!
There are credit cards with rewards and cash back. Then there are people who can use credit cards to save money.  You can read it on the MMM blog here.
Ok, so what a lower middle-class person like me can do with credit card?
I have PC finacial Mastercard, which give PC points. 
I do have it because, my family does grocery shopping mostly at No Frills and Costco. The PC points can be redeemed for grocery at No Frills. 
We also have a Capital one master card. It gives cash back as Check to Costco which can be cashed at Costco.
If you are like me  paying the credit card bills at time, then it is fine to get rewards. If you are late to pay, the evil will tear you up with interest. 
It is foolish to cut down credit card. If you laid off or suddenly unemployed for some reason, the credit card can be your guardian angel to get money fast. Yes, you have to pay the interest. But, the money is there, in case the emergency fund is not enough.

Don't you really like the fact that you don't have to carry money with you when doing grocery shopping? Make sure to have a PIN to protect the credit card. 
Which credit card rewards you love?

Disclaimer: The blog is not getting any money from the links. 

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