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  • Writer's pictureAdam Garrett

Who Shouldn't Get Credit Cards?

Credit cards are obviously a problem if you're racking up credit card debt, but less obviously a problem if you're not carrying a balance but are spending more than you would otherwise if using debit cards. Credit cards should be treated as a privilege for those who are making otherwise wise financial decisions like insurance, savings, budgeting, investing, etc..

I generally don't recommend getting credit cards at this time if you currently have at least 1 & of the following are true, prioritizing the below prior to acquiring a new credit card:

Current interest accruing revolving balance

Committed bankruptcy in the past 5 years

Paycheck to paycheck

No health insurance

No auto insurance collision coverage

No life insurance or comparable investments

No annual contributions to retirement account

DTI >50%

High DTI on car payment

Renting a home in scenario that doesn't justify it

Below 680 credit score

680-740 credit score is questionable

About to make a large financed purchase

For those where credit cards are not an advisable option, I recommend looking into cashback debit cards & free debit cards with perks and otherwise getting in a better place financially before pursuing credit cards. See my secured card recommendations here.

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