Credit cards aren’t evil – if you know how to use them the right way
Gene Marks says credit cards are useful tools for households and small businesses, even as delinquency rates climb. The risk comes from overspending and carrying balances too long.
Intelligence analysis by GPT-5.4 Mini
Marks argues that credit cards are often treated as a villain, but they are still a practical financing tool for small businesses and startups. He points to rising delinquencies as a real warning, then says disciplined borrowing, prompt repayment, and careful spending are what matter.
A credit card is like a bicycle with training wheels: it can help a person or business move faster, but only if it is used carefully. If too much weight is put on it, the whole thing gets wobbly and hard to control.
Analysis
Marks pushes back on the idea that credit cards are inherently bad. He cites Federal Reserve Bank of New York data showing that the share of balances at least 90 days delinquent reached 13.12% in the first quarter, the highest level in 15 years, and notes that many people are clearly under strain.
Even so, he argues that cards still serve an important role. For many small businesses and startups, they are a fast way to cover payroll-related costs, materials, and overseas purchases. He also says cards can be safer than debit cards for fraud because a thief does not immediately drain a bank account in the same way.
The core of his argument is discipline. In his view, smart users charge expenses that are likely to turn into near-term sales, avoid spending on items with no payback, and pay balances down every month or two so high interest does not take over. That kind of usage can also help build credit history, which may later support cheaper, more traditional bank financing as a company grows.
Marks also highlights rewards. He says some business owners combine personal and business cards to collect points or cash back, and some use those benefits for employee gifts. His bottom line is simple: credit cards are useful, but only if they are treated as a tool with limits, not a source of endless spending.
Key points
- The share of credit card balances 90 days delinquent rose to 13.12% in the first quarter, according to New York Fed data cited in the piece.
- Marks says credit cards remain a major financing source for small businesses and startups.
- He argues cards can be safer than debit cards for fraud and more practical for fast payments.
- His advice is to use cards for short-term, revenue-linked expenses and pay balances down quickly.
- He says rewards and cash back can be useful, including for employee gifts, when usage stays controlled.
If borrowers use cards carefully, they can keep businesses moving with quick access to cash and purchases. Paying balances on time can also help build credit, which may lead to cheaper bank loans later.
If balances keep growing, high interest can quickly turn a useful tool into a debt trap. The rising delinquency rate suggests that many borrowers are already struggling to stay current.
