Overheard someone say credit cards are 'free money' and I had to bite my tongue

I was at a coffee shop in Phoenix last week and heard two guys talking about how they just max out their cards and pay the minimums because 'credit is just fake money anyway' (like it's some kind of hack). That attitude is exactly why I still use a secured card after two years, even though my score hit 720 last month. I had a buddy in 2019 who racked up $8,000 on a rewards card chasing points, then lost his job and spent three years paying off that debt with interest that almost doubled the bill. The thing is, if you treat credit like free money, it will eventually bite you in the form of high utilization and missed payments that tank your score way harder than you think. I'd rather keep my limit low and my payments on time than play games with limits I can't actually cover. Has anyone else run into people who seem to think paying 22% APR is just a normal cost of living? I'm trying to figure out if I'm being too cautious or if this is common sense.

3 comments

3 Comments

taraross13d agoMost Upvoted

Buddy of mine bought a truck he couldn't afford on credit.

gavin36512d ago

wait wait, hold on. @the_brian did you say he bought a truck he couldn't afford on credit? like he actually signed the papers knowing he was gonna struggle with payments? i just can't wrap my head around that mindset man

the_brian13d ago

Man, $8,000 on a rewards card chasing points? That hurts just reading it. @taraross I've seen that truck scenario play out too, a buddy of mine bought a lifted F-150 on credit he couldn't afford and ended up having to sell it six months later for way less than he owed. Its wild how people normalize 22% APR like its just a water bill you pay every month. I think keeping your limit low and paying on time is just smart, not too cautious at all. That secured card approach probably saved you from a similar mess down the road.