I got a few nasty emails about my last post, people claiming not to be brainwashed yet still hating credit because it is evil. So I would like to continue my point.

1. When used properly you can increase your credit score, getting you a better rate for when you are forced to get a loan, (lets face it not everyone can pay cash for a house).

2. Many Credit cards have perks (2% cashed back, ect), if you are spending the money anyways, might as well get some cash back to lower your costs.

3. Easier and therefore better for keeping track of expenses then the old pen and paper.

Now I agree there are some people out there that can not handle an open credit line, they are foolish, and get into sticky situations where they get into debt up to their eyelids and just struggle to make ends meet. These people should destroy their cards, (if you can’t handle the temptation you should get out of the kitchen). But to make a blanket statement that everyone should destroy their cards is just foolish and bad advice. It is better advice to use them only if you need to, don’t dig yourself in too deep, and if you get in trouble there is always your emergency fund.

Bottom line is that debt is a tool, much like a hammer, if you are too dumb to not hammer your fingers, either learn how to not hit your fingers or use a screwdriver.

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• Credit Cards Vs. Debit Cards 

I use both, what a disclaimer . As I mentioned before however I do not carry a month to month balance on my Credit Card. Why even have a credit card then? Building a credit score, credit scores are all about showing that you can manage having an open line of credit. I have all of my monthly payments set up to hit on the credit card and then usually buy gas and food on the card. Then around the 20^th of every month I pay it off (online of course), statement comes on the 30 and says “see you next month”. I am young and so if I was to carry a balance on my card I would be hit with something crazy like 22% APR… Highway robbery! Since I only put budgeted items on my card I never get in over my head either, all unplanned items I use the debit card for.

I always try to keep my debit card around, as a college student there is an unwritten law that I am not allowed to carry cash. To be honest I don’t mean to always have no cash, but it makes budgeting easier so I am not complaining. I am able to track what I spend my money on down to the cent, where if I carried a lot of cash I would only have estimates (or sort through a pile of receipts). There is only one store I know of that doesn’t accept plastic that I shop at (it is a great local pizza place), any other store probably wouldn’t get my business. Do you use plastic to help your budget? Or are you brainwashed into thinking that credit of any kind is bad?

There are ads allover the internet and your TV for credit reporting services. In my opinion they are all scams. By law you are allowed to check your credit report once a year for free and that is what you should do! Why pay $20-30 for a report for something I can get for free every year? “But these companies track your credit rating for you!” is the common answer, which may or may not be true, but if you check your report once a year you will always be within the complementary time period to argue/fix your credit score. So why bother knowing the second that your identity gets stolen.

Another reason to not pay a third party to “track” your credit score for you is that it provides a false sense of security, if you know someone is supposedly watching out for you then you may not dispose of sensitive documents properly, let your guard down and make you more likely to be targeted. That is the funny thing about insurance (lets face it credit score watching companies is just another type of insurance). But more on insurance later.

Don’t get me wrong you should always check your credit report, always dispose of sensitive documents properly and of course always check your bank balances, budget and you should never act more indiscriminate just because you have insurance.

If none of these reasons work for you, how about the ads are just dumb. Why does the guy from free credit report (BTW it itsn’t free) want to be working in a restaurant? Because he got his credit stolen… Yah I didn’t see the connection either. It is sad how much of a consumer nation we have become.

Everyone has heard that the value of a new car drops the second you drive it off the dealer’s lot. This immediate drop in value discourages a lot of people to buy new cars, and instead getting a discounted used car. Now don’t get me wrong there is nothing wrong with a used car, and if you are in a debt or your budget is very tight a slightly used car may be the right choice. Just be careful of the “lemon” used cars, and understand that you will have car problems sooner then if you had bought a new car.

No matter which route you decide, you need to do your research. The internet is an excellent source for information, you can learn what the marketer’s suggested price is, what other people that have the car have to say about it. Before you make such an important finical decision you should check your personal budget and finances to see what is best for you. Just remember it is better to invest and save for the future today then put it off till tomorrow.