I’m 30 and still don’t use a credit card. What Am I missing Out On?

When it comes to living your life and spending money, only you can decide the best path forward as far as how you spend money. For some people, this means only using cash, while others rely solely on credit cards to help them keep their finances in check and maybe earn some cash back rewards along the way. 

Sometimes, you have someone like this Redditor posting in r/personalfinance who is afraid of credit cards. Even after being married and owning a home, they still know how much a credit card debt affected their grandparents, which has warped their opinion about using credit. 

To be clear, there is no right or wrong answer regarding whether or not a credit card is necessary. This is especially true if you are a Dave Ramsey believer, as he can be very anti-credit card at times. 

The Worry

In the case of this individual, you have a 30-year-old who is married and has no children, has no plans to have children, and owns a home, having inherited it from the grandparents. Of course, the big concern comes from the same grandparents, who also complained about credit card debt “day in and day out,” which created a real chill around this payment type for the original poster. 

This begs the question of whether the Redditor is asking whether people are acting “dumb” for being afraid of credit cards. While it’s certainly unwarranted to believe that credit cards are awful because of the grandparents, it’s also not unheard of for people to get into serious financial difficulty because of credit cards. 

To be fair to this Redditor, “dumb” isn’t the right word, but something like “uninformed” might be. Clearly, a singular point of view has warped their opinion of paying with credit cards, and they don’t understand that credit cards can be beneficial if used properly. 

Use Credit Properly

The first Redditor asks the right question when mentioning that a credit card is a tool, so, like a hammer, you must know how to use it correctly. The bottom line with credit is that using it properly can be a fantastic opportunity to earn travel rewards or, better yet, get “free” money with cashback rewards. 

The biggest flag this Redditor should know is to pay off the balance every month and not to spend what cannot be paid off. As the original poster has used Affirm before, they know how to handle regular monthly payments, and credit cards are not so different. 

All of this really comes down to being responsible, which scares individuals away from credit cards after listening to Dave Ramsey. As a professional podcast host who advises people on finances, he has seen too many people fall into credit card traps and run up balances they can’t pay off. When you factor in 20-29% interest, the debt gets out of control quickly. The story’s moral is that this Redditor shouldn’t be afraid, but they should be responsible. 

The Benefits Are A Big Deal

Unfortunately, this Redditor doesn’t get into the weeds with how much they earn or spend to know exactly what numbers to look at, but 2% cashback on a credit card can add up quickly. This is $2 for every $100 spent or $20 for every $1,000 spent, and if you use your credit card to pay a lot of your monthly bills, you are essentially earning “free” money as long as you pay off the balance every month. 

Now add other benefits like purchase protection, extended warranty, auto rental coverage, travel perks, and more, and you can start to see why credit cards are so great. One Redditor in the comments says it best that with all the rewards available, it’s only up to you to get into a bad position with a credit card and not vice versa. 

The credit card company will give you benefits, but the perks will keep coming as long as you keep your balance low and pay it off every month.

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