Is it immoral to use a credit card?

[psychemusic]

I was wondering what the Church taught about using credit in general, but especially in situations where you use a credit card when you’re not sure if you’ll be able to pay it off anytime soon. I know conventional wisdom (at least in some circles) is to pay the balance every month, but I’ll be happy if I could do that sometime during the next decade.

Michael

 

[vern_humphrey]

psychemusic:

I was wondering what the Church taught about using credit in general, but especially in situations where you use a credit card when you’re not sure if you’ll be able to pay it off anytime soon. I know conventional wisdom (at least in some circles) is to pay the balance every month, but I’ll be happy if I could do that sometime during the next decade.

Michael

Using a credit card – especially when you’re not sure you can pay if off anytime soon – is unwise, but not immoral.

Now if you default, that would be immoral.

 

[Chris_Jacobsen]

No, it is not immoral to use a credit card. A credit card is needed to purchase airline tickets, reserve hotel rooms, rent cards, and to buy things over the internet.

It is also useful for establishing a credit rating. Unless one has shown that he has borrowed money and paid the debt on time, he has no credit rating. Not having a credit rating makes it difficult to get a loan, such as a car loan.

Using a credit card and paying the balance every month gives one cash flow, without the expense of paying interest.

 

[Benedictus]

psychemusic:

I was wondering what the Church taught about using credit in general, but especially in situations where you use a credit card when you’re not sure if you’ll be able to pay it off anytime soon.

Well, if you can avoid getting into debt, then I’d highly recommend that you not go into debt. Using credit cards isn’t immoral unless you believe that you won’t be able to pay them off.

The interest rate on most credit cards is terrible, and if you really need money, you can usually get a load from a bank or credit union at a much better rate.

I do think it’s important for most people to have a credit card or too, provided they are self-disciplined.

 

[otm]

vern humphrey:

Using a credit card – especially when you’re not sure you can pay if off anytime soon – is unwise, but not immoral.

Now if you default, that would be immoral.

Defaulting is not immoral if you truyly intended to pay and later circumstances changed and you were unable to.

 

[otm]

Perhaps the best question is what are you using a credit card for that you are not going to be able to pay off? If you didn’t have the card, what would you do? Go with out?

If you can go without, but in using the card you are going to have a debt you can not pay off reasonably soon, then you have no business using the card. It is less a moral issue than a common sense, money handling issue.

Short of Food, shelter and clothing (and perhaps medicine), using a credit card is too often and “I want” rather than an “I need”. and using a credit card for a hamburger, or a dinner out, is not a need. You can learn to cook, and provide good food at a way more reasonable price than eating out.

So what is it that you are contemplating spending on?

 

[wcknight]

It not immoral to use a credit card, as long as you have every intention to pay.

It is not wise to extend payments especially if what you are buying is not an absolute necessity. And credit card interest in particular, is almost always higher than other types of credit.

A bit of good general advice is to always live within your means. Live as if you make much less than you actually do (save or invest the rest). Make use of the time value of money (Einstein calls it the miracle of compund interest). If you get it working in your favor, it can work wonders. IF you get it working aginst you, it can hold you back indefinitely.

The more you can hold off making big purchases (the one exceptione being a home), the better off you will be. Take control of your money and it will not control you. Most importantly put money in its place, never value it so highly that you put it before God and helping others.

Take care and God bless.

wc

 

[STIOFAN]

I only have a credit card for about a year, and when it’s paid off, I’m getting rid of it, what a thorn in my side it has become, a debit card might be a better way to go, as you can’t spend what you don’t have.

The only immoral thing I’ve found about a credit card is the way the company rips me off if my payment is late.

Anyway next payment, it’s goodbye credit card.