Credit card

Why I disagree with Mark Cuban’s advice on credit cards

Image source: Getty Images

Mark Cuban is a billionaire known for providing great financial advice over the years. But there is one thing Cuba said about credit card with which I totally disagree.

On his blog, Cuban said that you should avoid using a credit card. In fact, he advised readers to, “Cut your credit cards. If you use a credit card, you don’t want to be rich.

Why I disagree with Mark Cuban’s advice on credit cards

While this advice may seem good at first glance, credit cards themselves don’t stop you from getting rich. The rich use credit cards all the time. And they can actually be a tool that helps you improve your Personal finance.

The reality is that credit cards can do a lot of good things for you. They can help you improve your credit rating. This can make it easier for you to borrow money responsibly to do things like start a business or to buy a house (which can help improve your net worth).

What if you use your credit cards for earn rewards, they can help reduce the cost of your purchases. If you get 2% cash back on everything you charge, for example, you basically get 2% back.

Credit cards can help you too tackle debt. You can use a credit card balance transfer to reduce the interest rate you pay. Or you can pay off large purchases over time without paying interest if you get a 0% introductory APR credit card for 12 months. And they make it easy to rent a car or hotel because you don’t have to worry about using a debit card and have a hold that prevents access to your money.

Instead of avoiding credit cards, use them wisely

With so many advantages, listening to Cuba’s advice on giving up credit is shortsighted. Instead of slicing up your cards and dodging them, the key is to make sure you’re using them wisely. This is because credit cards only give you trouble if you end up with a balance that you cannot pay off.

In some cases, people end up with a credit card balance because they have no other choice in a serious emergency. If so, it’s still better to have access to this card, rather than going into debt with very high interest, like a payday loan.

In many cases, however, people enter credit card debt because they don’t budget carefully or because they are living beyond their means. In this case, credit cards are not the problem, but rather a symptom. Instead of being afraid of credit cards, or cutting them off, it is far better to take control of your financial situation so that you can make credit cards work for you.

To get used to live on a budget and monitoring your spending is the real ticket to getting rich. And you can’t shorten that just by writing off your credit card debt and slicing up your cards. Instead, it takes a commitment to your future self to behave responsibly today so that you can have a better future. Working to get to the point where you make that decision is a much better approach than simply ignoring all the benefits that credit cards offer.

The best credit card erases interest until 2023

If you have credit card debt, transfer it to this top balance transfer card guarantees you an introductory APR of 0% until 2023! Plus, you won’t pay any annual fees. These are just a few of the reasons our experts rank this card among the best to help you get your debt under control. Read our full review for free and apply in just 2 minutes.

Read our free review

We strongly believe in the Golden Rule, which is why the editorial opinions are our own and have not been previously reviewed, endorsed or endorsed by the advertisers included. The Ascent does not cover all the offers on the market. The editorial content of The Ascent is separate from the editorial content of The Motley Fool and is created by a different team of analysts. The Motley Fool has a disclosure policy.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


Source link

Leave a Reply

Your email address will not be published. Required fields are marked *