Credit Cards: Friend or Foe? Here’s What You Need to Know
Credit Cards: Friend or Foe? Here’s What You Need to Know
Credit cards often come with a lot of mixed feelings. If you grew up hearing “Don’t get one!” or you’ve had a bad experience with debt in the past, you’re not alone. But as Landon Bradfield from Jordan Credit Union shared on this week’s Financial Friday, a credit card isn’t the problem—it’s how you use it that makes all the difference.
When used responsibly, a credit card can help you build credit, protect your money, and even earn rewards. Let’s break down the good, the bad, and the smart way to swipe.
Pros of Using a Credit Card
- Builds Credit
Using a card and paying it off on time helps boost your credit score, which is key for getting better rates on loans and other financial tools. - Fraud Protection
Credit cards are safer for online purchases. If fraud happens, it’s isolated from your checking account—saving you major stress. - Purchase Protection
Many cards include extra protection on purchases, like coverage for damaged or stolen items. - Convenience & Rewards
Credit cards are easy to use and can earn you cash back, travel points, or other perks for things you’re already buying.
The Cons to Watch Out For
- Easy to Overspend
Swiping a card can feel effortless—which is why it’s so easy to spend more than you intended. Remember: you’re taking out a loan every time you swipe. - Debt Accumulation
If you don’t pay off your balance in full each month, interest charges add up fast—especially on large balances. - Credit Score Risks
Carrying high balances or making late payments can hurt your credit score instead of helping it.
Smart Credit Card Habits
To make credit cards work for you, not against you:
- Pay on Time—Never miss a due date
- Pay in Full—Avoid carrying a balance if possible
- Keep Utilization Low—Use less than 30% of your credit limit
- Check Your Balances Often—Stay in control of spending
- Don’t Treat It Like Free Money—Because it’s not!
“This little thing is a powerful financial tool—if you’re using it well, it can work for you. If you use it poorly, it can work against you.” – Landon Bradfield
