Introduction¶

Credit cards are more relevant than ever. 82% of adults in the US had at least one credit card in 2022.^1^ But credit cards also come with great responsibility. The average American has around $6,088 in credit card debt.^2^ And 1 in 3 Americans owe more on their credit cards than they have saved.^3^ The goal of this paper is to explore if and when should credit cards be used. And if so, how does one use credit cards responsibly.

This paper assumes God’s word as the infallible revelation of His will. This paper also assumes Ellen White as a prophetess sent from God to provide guidance to His people. Because of this, this paper will use biblical principles and inspiration as a foundation for financial insight.

Advantages¶

Credit cards, when used responsibly, have many benefits.

One of the primary benefits of credit cards is to build a good credit score. A good credit score opens opportunities like renting an apartment, better interest rates, and loan availability.^4^ When cardholders pay their balances on time, it demonstrates their reliability to potential lenders. This of course depends on the responsibility of the cardholder.

Another reason people like to use credit cards is the ease and safety that comes along with it. When using a credit card, one can spending limits, one doesn’t have to carry around cash, and they often provide user-friendly and convenient mobile apps.^5^

Finally, credit cards often provide access to exclusive sales deals and rewards programs that credit card companies often provide. These deals include travel points, cash back, and discount prices. These incentives, when used wisely, can be a way to spend less and therefore be a good steward. Again this requires responsibility of the cardholder to not be tempted to make unwise choices.

Disadvantages¶

Despite their advantages, credit cards present significant risk, especially when it comes to overspending and forgetfulness. Because of their danger, one must approach credit cards with great care.

The greatest temptation is to accidentally spend too much because it’s so easy to buy things with cards. Small purchases add up quickly, and without careful planning, one can easily end up in debt.

Another temptation is to consciously spend money that one do not have. In the moment, the desire to own can overcome reason. Reason often warps itself to the desire of the person. They rationalize that they will be able to pay it back with their next paycheck. This is a mistake of bad stewardship.

Biblical Principles¶

The concept of debt is not new, and God has provided counsel in His Word. Here are a few examples:

• Proverbs 22:7 ESV “The rich rules over the poor, and the borrower is the slave of the lender.”