This piece is part of my 2016–2026 archive migration. Some original formatting, content, and external links may be missing, changed, or not be optimized.
It’s not the end of the world if you suck at using the plastic
You might get a handsome credit card spending limit if you get lucky or have decent credit. For some people, that could be $10,000. For others, it could be $20,000 and beyond. Some people can handle this amount of financial access; others lose their minds and max out their credit cards with insufficient money in the bank to pay it off.
Financially disorganized people should keep a distance from credit cards. To ensure you pay your credit cards on time, you only need to set up automatic payments to pay the statement balance or minimum payment (if you carry a balance). Still, you also want to be sure you have the money you owe on your credit card in your bank account at all times (if possible).
Though history doesn’t confirm your future history, if you typically struggle with responsibly using credit cards because you haven’t mastered the temptation, don’t experiment by applying for one only to find yourself back in trouble.
You might be financially responsible but struggle with credit cards. I know several people who make healthy money, pay their bills, and actively save. But when it comes to credit cards, they don’t know how to manage their freedom; this is okay. Avoiding credit cards is frequently the best option for some.
Do you have a mountain of debt that needs to be paid off? If so, a break from credit cards or not introducing them into your current financial situation would be prudent. The best thing you can do when you’re in debt is to not add more debt.
A credit card requires you to manage your balance. If you use your credit card for everything like me, it’s good to know how much you spend regularly to ensure you’re not overspending.
Are you prepared to pay for what you bought at the end of the month? If not, you might spend a lot over time due to credit card interest. The larger balance you hold, the more you end up paying.
Most people still don’t have emergency funds, so they turn to credit cards when inconvenient financial situations arise. Suppose you’ve consistently used credit cards as a crutch/financial emergency. In that case, this is an excellent time to build a cash emergency fund so you don’t have to go into debt every time you run into financial turmoil.
A credit card is a secure way to make purchases. It also helps you keep track of things, but credit cards can also hurt you if you don’t prepare to accept the responsibility that comes along with it.
It’s okay if you have yet to learn how to manage a credit card successfully. Leveraging debit cards and cash is a healthy way to handle your finances.
This content is for informational purposes only — not professional advice. Consult a qualified professional before making any major decisions.