I use credit cards extensively.  I presently have 3, each with healthy available credit balances.

In fact, I pay for almost everything with my credit cards… but I pay off the balance at the end of each month (most months).

Lately I’ve been writing a fair amount about how, why, and where to get credit cards.  Today I thought I’d write about reasons NOT to get a credit card.

Here it goes… 11 reasons NOT to get a credit card.

1. So you can quit your job.
2. Because you’ve maxed out your other cards.
3. Because you’re offered one, two or ten.
4. To buy stocks and bonds.
5. For any investment where the ROI is less than the credit card interest rate (APR).
6. To finance a vehicle … any vehicle including a Ferrari.
7. To finance you children’s post-secondary education.
8. To pay for a long, expensive vacation.
9. To pay for a home renovation.
10. To fund retirement.
11. To fund your parents’ retirement.

In a nutshell, you don’t want base your decision for getting a credit card to finance purchases that you know will take a long time to pay off such as home renovations, education, and of course your retirement.

Moreover, credit card interest rates are so high that to think of using a credit card to access funds for investments is not that wise.  There are no investments I know that are guaranteed to provide an ROI higher than credit card interest rates.

What about 0 balance transfer credit cards you might ask?  Couldn’t you free up credit on existing credit cards to make investments and/or buy big ticket purchases?

You can.  You can do anything you like.  However, using credit cards regardless of the amount of available credit you have for purchases that you KNOW will take a long time to pay off or you’re risking in the hopes of making more money simply are not sound personal finance decisions and certainly not a good use of credit cards.

If you’re wondering then, what are good reasons to get a credit card, I set out 10 reasons to get a credit card here.