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#Should You Apply for a Credit Card?

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Credit card offers are everywhere. The ads are stuffed into our mailboxes, written on free t-shirts at college campuses, and even uttered by some pretty well known financial buffs on TV. But before you sign on the dotted line, it s a good idea to think twice and consider some credit card alternatives. Should you really apply for that new card?

Growing Up with Credit Cards

Like many of you, I grew up watching my parents use credit cards. They earned some airline miles, got some cash back, and as far as I know paid off the balance every month. You might say they were responsible credit card users.

They explained to me that one day I too could have a credit card. After all, it would help me build my credit score and allow greater financial freedom when I grew up. I d even be able to afford a mortgage and get a house of my own!

Before long, I viewed the credit card as a gateway into adulthood. That shiny new piece of plastic was more tempting than a Wonka golden ticket, and I wanted one now!

Then I received it in the mail. It was a brilliant blue. It had my name on it. It s was my very first credit card from Chase! I was a responsible adult and paid off the balance every month, never paid it late, and made sure I spent within my means.

Rethinking the Use of Credit Cards

Four or five years later after I received that card I began to question the use of credit cards in my life. Were they really necessary to get ahead? Moreover, was I spending more money with my credit card than I would be with a debit card or cash?

Soon I came to the conclusion that the use of credit cards in my life represented a major risk. What if Future John wasn t as good at paying off his credit cards every month? What if Future John had to pay a lot of interest? What if Future John began to solely rely on the security of owning a credit card instead of finding ways to save money and increase his income?

I took out the scissors, grabbed my two credit cards (yes, I had two at that point), and cut them into pieces of celebratory confetti. Yay!

Why Shouldn t You Apply for a Credit Card?

I don t expect to convince all of you out there to cut up your credit cards. All I ask is that you consider three reasons why you can do without one:

1. You can now earn cash back rewards with a debit card.

That s right, you can finally get a cash back debit card. The nice thing about this is that we re earning over $300 a year and payments are deducted straight from our checking account. Unlike a credit card, we don t have to worry about paying it off every month. That s a pretty sweet deal.

2. You can lend yourself money by getting on a really good budget.

You won t have to rely on credit cards for everyday expenses or emergencies if you learn how to make a really good budget .

On commission? No problem. Add a line item to your budget called the hill and valley fund  and use it like you would the take a penny, leave a penny jar you d find at your local convenience store.

3. The Bible says it s not such a good idea.

Scripture is pretty clear that going into debt isn t a good idea. Why play games with credit cards? Consider some of these verses:

The rich rule over the poor, and the borrower is slave to the lender. – Proverbs 22:7 NIV

Do not be one who shakes hands in pledge or puts up security for debts; if you lack the means to pay, your very bed will be snatched from under you. – Proverbs 22:26-27 NIV

It is better not to make a vow than to make one and not fulfill it. – Ecclesiastes 5:5 NIV

Let no debt remain outstanding, except the continuing debt to love one another, for whoever loves others has fulfilled the law. – Romans 13:8 NIV

Allow me to be clear: it is not a sin to own a credit card. However, I think it s pretty clear that owning one is a bad idea or risky venture at the very least. If you are a responsible credit card holder, I m not mad at you. After all, I was one once upon a time.

Do you agree with John that credit cards aren t a good idea? Let us know your thoughts in the comments.