In a nutshell, my issue is: Should I use a credit card if I live in Europe?

Submitted by Stock_Phone_7618 t3_z5lmyc in personalfinance

The only financial information or guidance I ever receive comes from the United States; rarely, the UK, but that only happens very infrequently, so I am unable to take full advantage of their access meaning a Roth or vanguard account. I have a question about whether or not I should use a credit card if I live in Sweden. I am just 16 years old and will soon turn 17. I realize it has no value because there is no credit score system, but I still think the idea is valuable. For example, if I open a credit card account and pay $30 a month but can spend $1,000, is that really so beneficial? I could use it to pay for groceries and other expenses that are cheap. Can I use my own money to purchase some more expensive items, do I not save money or is it all wasted?

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EthanWS6 t1_ixwrhv5 wrote

You are still using your money, you have to pay the card balance back.

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r_a_d_ t1_ixwty22 wrote

Credit cards in Europe are typically like charge cards in the US. You will have to pay the monthly balance off.

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A_Crunchy_Leaf t1_ixwzrrz wrote

Use a credit card because of the benefits, like cash back and fraud protection. If your credit card gives you 2% cash back, you could either use your charge card and pay $100 or you could use a credit card and effectively pay $98 for the same goods.

If you think you can get a credit card and spend $1,000 and you only have to pay $30 a month, you shouldn't get a credit card until you learn more about them. If you spend $1,000 on a credit card, you should be prepared to pay $1,000 within one month / 1 billing cycle.

You shouldn't carry any credit card debt long term unless your situation is dire, or there is some 0% financing promotion with your card.

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