Credit

FTR, the ads you refer to are for the Visa Check/Debit card, which is essentially a plastic check. The money comes straight from your checking account.

 

And here's the practical use for that. 2 weeks ago, my 01 Ford Taurus, a lemon of a car btw, died and I bought an 06 Chevy Impala. Because of our credit rating, I got a very low interest rate, much lower than any bank/credit union would offer. Our credit rating got us that rate.

Because Discover gives money back on purchases.

 

Don, may I ask: Do you have a mortgage?

 

I have a friend that uses his Amazon.com card for his day-to-day expenses, pays the balance off every month, and uses the reward points to get free books from Amazon for his ministry.

 

Doesn't the bible say that the borrower is servant to the lender?

 

And your point is...?

 

1 Corinthians 7:23
23 Ye are bought with a price; be not ye the servants of men.

Is it good for a Christian to be in the bondage of debt to another?

 

No, it's not good. But I don't see anything wrong with using a credit card as long as you pay it off each month. I think the first time you can't pay the balance, you should then cut it up and throw it away.

We've got a GM Mastercard that we try to use for everything we can, because they give us 1% of our purchases toward a new car, or we can get the cash back. We pay it off every month.

 

Credit is a tool that can be used. What is evil is compound interest. It was illegal in the United States until the Federal Reserve Act, and now the gap between the have's and the have not's is bigger than ever.

 

We tore up our credit cards years ago and now use only a debit card.

If we don't have the cash in the bank, we don't buy...

The only exception is our mortgage and the interest is very low, as are the payments.

We don't buy new cars, we buy used ones and pay cash.

 

A person is not a "borrower" if he pays off the balance each month. But one does need to be careful with a credit card, because it can be tempting to overspend. It is a good tool in the right hands.

 

I'm not going to argue that a credit card couldn't be used in the manner you suggest. But that is certainly not the way credit is marketed to folks, and what percentage of Christians with credit cards do you imagine actually pay of their balance every month?

 

I have no idea, but I know I do. Essentially, I use my credit card as a debit card. But you are right - some use their credit card as a loan card, and that is a bad thing.

 

Credit cards actually offer you more protection than does a debit card. You have buyer protection with a credit card where if you have been wronged with a purchase, you can go through the credit card company and they will charge back the dollars to the company, and credit your account, even months later. You don't have this protection with a debit card. Also depending on the debit card you may be liable for more initial dollars on fraudulent charges. Then you add the bonus of rebates that many credit cards offer, that is another plus. They are also better for traveling instead of carrying to much cash or dealing with and paying for traveler checks. If you are called away from home rather quickly and run into problems that require funds, you are in real trouble if you didn't happen to have enough in your checking account to use with your debit card.

They real key is as has been mentioned earlier. Always pay it off when the bill is due, to avoid never paying interest. And also only keep a minimum of cards open in order to better protect against identity theft. In other words, don't open any free card that comes your way, so you have all kinds of them open that you can't keep as good a track of, and don't really need.

 

I don't think this applies any more to financial debt than it does to being a slave to anything of the world.

 

You are absolutely correct, it's not the way credit is marketed to folks. And you are also probably correct by implying that most folks don't pay off their balance every month.

I messed up big time with credit cards when I was younger. I know first-hand the danger they present. My wife and I had agreed that we would not have any credit cards, only a debit card. The only reason we got the one credit card we do have is for the 1% rebate they offer on everything you purchase. And what I suggested earlier applies to me as well; the first month I can't pay the balance, it's gone.

I went for years without a credit card. Life goes on just fine without them. I would agree that most people are better off without them.

 

There are many situations in which nothing but a credit card will do for proper ID and security. For example there was no way any of my children, even as they turned 18, could purchase a cell phone (and plan) without a credit card, even if they planned to use cash. A credit card was an absolute necessity. Time after time when some of my sons wanted a larger purchase: car, mortgage, etc., either my wife or I had to co-sign for them, because no matter what their income was (more than what I make), they had no credit rating. A credit rating comes simply by using a credit card and having a credit history. And that is very advantageous if you are planning to take out a loan or buy a house.

 

I guess it all depends on your situation. We use credit cards all the time and there are huge advantages:

1. My wife and I couldn't do our jobs without ours --- travel, business expenses, etc.

2. Our credit card generates airline miles, which we use for travel.

3. We get a great annual statement that we use for taxes.

4. We don't have to carry our check book or cash all the time.

5. You have much better "buyer protection" with credit cards.

That being said, you have to have the ability/common sense/discipline to pay them off every month.