My parents tell me that credit cards should be illegal, but I need it

The credit card is one of the most controversial financial products. If you use it correctly, it can set you up for long-term financial success. These cards allow you to build credit and come with meaningful perks like cashback and discounts.

However, if you do not use a credit card correctly, it can put you in debt for the rest of your life. High interest rates make it difficult to get out of debt once you’re in the hole.

An individual recently asked Reddit for advice on whether they should get a credit card or not. The original poster’s parents believe credit cards are scams that should be illegal. However, some people explained how advantageous these cards can be. Here’s what Reddit thinks about opening a credit card.

Credit Cards Can Get You In Trouble

One of the top comments on the Reddit post compared credit cards with alcohol. If you abuse a credit card, it can have significant consequences for your life. Getting deep into debt can prevent you from owning a home, and landlords may not want to do business with you.

It’s not an exaggeration to say that a high credit card debt will negatively impact where you live and what type of people are in your social circle. If you can’t live in good areas because landlords don’t want to house someone who has a low FICO score, it will limit your options. This is an extreme case that can happen if you let your spending get out of control.

People who spend far more than they save should avoid credit cards. These financial products can amplify any financial struggles and result in a continuous debt cycle.

Credit Cards Can Be Very Beneficial If Used Responsibly

Another top commenter came from a Redditor who said that credit cards are not scams. Instead, the individual pointed out the rewards and other perks that can strengthen your finances. The individual also stated that credit cards are safer than debit cards in the event of a fraudulent purchase.

“Pay it off in full every month and don’t ever spend more than you have,” the commenter concluded. 

Other Redditors pointed out that credit cards are not an “unlimited money option.” These cards have limits, and once you exceed the limit, you have to pay off the debt before you can spend money on it. However, if you have maxed out your credit card, you should prioritize paying it off. Don’t ignore a maxed-out credit card just because you have another one that’s readily available.

It’s Safer To Carry A Credit Card Than Cash

While most of the conversation around credit cards revolves around their rewards programs and the risks of falling deep into debt, they are also a safer payment method. They’re better than debit cards if any fraudulent purchases take place, but these financial products also edge out cash.

“It’s much safer than carrying cash everywhere. Replacing a lost credit card is easy. Replacing $100 in cash? Not so much,” one commenter stated.

You can approach your credit card company and request a new card if your current one gets lost or stolen. Credit card companies also let you freeze your card at any time to prevent illegitimate purchases.

Consumers do not have those same controls with paper money. If someone takes your $100 bill, there is no way to track them, freeze the money, or contact your bank for assistance.