Credit cards often get a bad reputation, but according to business expert Gene Marks, they are not inherently evil. In a recent commentary, Marks argues that when used responsibly, credit cards can be a valuable financial tool for both individuals and small business owners.
Rising Delinquencies Spark Concern
Recent data from the Federal Reserve Bank of New York shows that the percentage of credit card balances at least 90 days delinquent rose to 13.12% in the first quarter of this year—the highest level in 15 years. While this trend is concerning, Marks emphasizes that the blame should not fall solely on credit card companies like Visa and Mastercard.
The Benefits of Credit Cards
Marks highlights that credit cards provide essential financing for small businesses. According to the Federal Reserve's 2025 Small Business Credit Survey, credit card financing remains the top source of funding for small enterprises. They simplify transactions, especially with overseas suppliers, and offer greater security than debit cards, which can be vulnerable to fraud.
When used correctly, credit cards serve as a key source of working capital. Smart business owners use them to purchase materials or services that will generate short-term sales, avoiding unnecessary expenses. By paying off balances promptly, they minimize high-interest charges and build a strong credit history, paving the way for lower-interest traditional financing.
Perks and Moderation
Credit cards also offer perks like points and cash back. Many business owners combine personal and business cards to maximize rewards, often using them to purchase gifts for employees. Marks compares credit card use to enjoying a drink or a Big Mac in moderation: it is fine as long as you do not overdo it.
For those struggling with debt, Marks advises cutting back, implementing a spending plan, refinancing with a home equity loan, or finding a lower-interest alternative to pay down balances. He stresses that these solutions have been available for decades and can help restore financial balance.
In conclusion, Marks encourages continued use of credit cards for both personal and business needs, but with discipline and moderation. As with many things in life, balance is key.
