Like most things, there are advantages and disadvantages to credit cards. Knowing some of these can help you decide if you do or do not want to use credit cards.
Credit cards are good...
- Purchase power and ease of purchase
- A safe substitute for cash
- To consolidate many purchases into one payment
- Build your credit history
- Reap the rewards such as air miles, cash back, discounts, etc
- For placing orders easily on Internet or by phone
- When you have leverage against the merchant when a problem arises. Your dispute/claim will get prompt attention when the merchant knows your payment can be delayed or disputed
Disadvantages of credit card...
- A recurrent temptation to overspend
- Purchase of non-essential items
- High interest rates and increased debt
Credit cards can make life easier and be a great tool, but if they aren’t used wisely they can become a huge financial burden. If you do decide to use credit cards, remember these simple rules:
- Keep track of all your purchases
- Don’t spend outside your budget
- Pay off your balance on all of your credit cards at the end of each month
- Don’t loan your credit or give out your credit card information to anyone but reliable companies.
How to use credit cards for beginners
Use that credit card smartly
Benefits of a credit card