To Use a Credit Card or Not: A Christian Perspective

Credit cards have become ubiquitous. For most people, they are a common method of paying for purchases. There are certainly no biblical prohibitions against the use of credit cards. However, let’s examine credit cards more closely through a filter of good stewardship.

The benefits of credit cards

As regular credit card users know, there are many practical benefits. Topping the list are the points that can be used for airline tickets, hotel stays, car rentals, and more. At CCCU, for every dollar in purchases with its CUrewards card, a portion even goes to missions and ministry projects.

One credit card caution and a solution

Studies have shown that people tend to spend more when using a credit card than when using cash. The transaction feels more abstract, making you less hesitant to spend than if you had to pull dollar bills out of your wallet. However, if you follow these four “rules of the road” for the wise use of credit cards, you should be able to use them without overspending.

• Use a credit card only for pre-planned, budgeted items. In an ideal world, you would have a budget that enables you to live within your means. In your plan, portions of your income are allocated to giving, saving, investing, and spending on everything from food to clothing. If you have $50 allocated to clothing each month, you can charge $50 worth of clothing each month.
• Track your use of a credit card as you use it. When you make a purchase with a credit card, you won’t need to actually pay for the purchase until later when you receive your credit card statement. A common way people get in trouble with credit cards is they don’t keep track of their charges. Then, when they receive their statement, it can be surprising how much they owe. It is far better to track your use of a credit card as you make purchases. If you charge $50 worth of clothing, that comes out of this month’s clothing budget. If you use a manual budgeting system, like a paper & pencil system or a spreadsheet program, you’ll have to remember to account for such spending. If you use an online budgeting tool, it will automatically capture your credit card purchases and attribute them to this month’s budget. You’ll just have to make sure those purchases are categorized correctly.