What Does the Bible Say About Credit Cards?

Today, I received not only a letter in the mail about applying for a credit card but also received an email saying the same thing! Banks really want to get us to use more credit cards. These days, most cards offer great incentives, such as travel points, rewards to your favorite store, or even pure cash back! Not only that, but many of them offer a 0% annual percentage rate (APR) for the first year. This sounds wonderful, so why not get a credit card or two?

But what does the Bible say about credit cards? Should Christians use credit cards?

Be sure to check out the 5 questions to ask yourself before taking out a credit card at the end of this article.

Here’s the big list of money topics in the Bible, and here is a list of over 100 Bible verses about money.

Should Christians Use Credit Cards?

The truth is, the Bible doesn’t say anything specifically about credit cards for obvious reasons – they weren’t around in Biblical times! So there is no plain answer to whether or not Christians should use credit cards.

But this is okay because the Bible was not meant to be an instruction manual. When the disciples asked Jesus questions, he never gave a straight answer. He answered with a question, or often times a parable. This was to get them to think deeply about the answers. Not only that, but I also believe Jesus didn’t give clear instructions because in many instances there is no right or wrong answer. We each individually need to answer this question in a way that we believe will be the most honoring to the Lord in our own personal situations.

Thankfully, the Bible does have a lot to say about money. For example, the Bible does say plenty about debt. There are also many verses about financial stewardship. We can take the lessons and principles from each of these Bible verses to interpret how to answer this question about credit cards. A Christian’s decision to use credit cards is between themselves and God.

Is it sinful or evil to use credit cards? What does the Bible say about credit cards? Should Christians use credit cards? While the Bible doesn’t give us a clear answer, we can come to a clear understanding by examining biblical financial principles. — PIN FOR LATER

What Does the Bible Say About Debt

As mentioned, the best way to interpret whether or not a Christian should use a credit card is to examine Biblical financial principles. What does the Bible say about using debt in general?

First off, the Bible doesn’t say to never have debt or that it is sinful to use it. In fact, there are many verses that express that lending money to others is what wise financial stewards do. So, therefore, if God encourages lending money, then he definitely wouldn’t turn around and say it is evil or sinful to borrow it.

However, the Bible is very clear that holding on to debt is not good. Those who have debt are considered slaves!

Proverbs 22:7
The rich rule over the poor,
and the borrower is slave to the lender.

Therefore, if you do use credit cards, do your best to not keep a balance. I would personally recommend that you think of your credit card as a debit card. Do not buy anything that you cannot pay back right away. Otherwise, you will not only incur large amounts of interest (often times 19% but it can be as high as 35%!!), but you will also be obligated to pay back your bank until the full debt has been repaid.

This brings me to principle number two about debt, and that is you must absolutely have a plan to pay it off. When you enter into a contract to borrow money, you have pledged to pay it back. When you do not pay your debt back, God considers this wicked.

Psalm 37:21
The wicked borrow and do not repay,
but the righteous give generously;

At the end of the day, debt is a generosity killer… You are tied down to paying back what you borrowed and many times the cost of debt can be high. It hinders you from being outrageously generous when you carry large amounts of debt.

The Money Taboo a weekly faith and finance devotional with Katie Jones

The Benefits of Using a Credit Card

When used wisely and responsibly, credit cards can offer a lot of great benefits! These rewards are actually beneficial ONLY when you do not carry a balance on your card and pay it off IN FULL every month. Otherwise, the amount that you pay in interest payments will cancel out any benefits that you are receiving because they are essentially costing you more than the actual reward.

Rewards

Credit cards often offer cash back or points that can be redeemed for things such as travel or store credit. This is essentially free money!

Build Credit

Credit cards do help you build credit – this is how many banks get college students to sign up, claiming that they can start building credit right away. This is not false, but again, if a balance is carried then the credit score can be affected negatively. The best way to use credit cards to build credit is to not use the maximum credit limit and to pay them off each month. Also, do not open and close credit cards often. Your credit score can be affected negatively by closing down lines of credit too. Pick one and stick with it for a long time!

Put Off Payments Temporarily

Credit cards can help to combine and streamline your expenses. By using credit cards, all your expenses are compiled into one monthly payment. These payments are due the same day every month. You also see the exact amount a couple of weeks before it’s due. This can be beneficial in the case that you are living paycheck to paycheck. But remember, do not buy what you cannot pay back. So pay close attention to your credit card statement or set up a monthly budget to track your spending.

Credit cards should not be used as emergency funds. In 2021, the average interest rate for credit cards was 16.44%. If you have a $3,000 emergency that you put onto your credit card and you are not able to pay off that full amount it will cost you $41.10 that first month. It will cost you another $41.66 the next month. And $42.23 the next. Set aside an emergency fund inside of a money market account that is earning interest rather than costing you money!

5 Questions to Ask Yourself Before Taking out a Credit Card

Before you click apply on that credit card email advertisement, here are a few questions to ask yourself to make sure you are ready…

Why do you need this credit card? Are you trying to pay for a certain lifestyle that you cannot actually afford?
How do you plan on paying it off each month? Do you have the cash to pay it off in full?
Are your purchasing expectations realistic? Or do you maybe struggle with overspending already?
Do you have an emergency fund saved so you don’t resort to using your credit card for emergencies?
Are you going to be able to make the most of the rewards you are getting? Will they be used for practical expenses? Do they expire? Will the rewards lead you to spend more money in the future?

Be real with yourself! If you need help with paying off credit card debt, or if you’d like to learn more about becoming an excellent money manager for the glory of our God, grab my FREE biblical money management checklist!