Pros and Cons of a Credit Card
With the easiness of swiping a credit card for a purchase there is going to be some pros and cons. Some may say with credit card power come great responsibility. It may either help when handled properly or become your worst nightmare if abused. If you are able to pay your bills on time every month and not carry over a balance. Then credit cards are a great convenience. The cards can also land you deep in debt. This often occurs if you're unaware of the terms of the credit card agreement, and if you carry too many cards. The key is knowing how much is in your account at all times know what your limits are and keep things separated like your wants and needs.
Some of the pros of a credit card are you can use them practically everywhere, especially overseas. They can boost your purchasing power because they can be used to buy goods and services over the phone, through the mail and online. They provide financial backup in the event of an emergency, such as an unexpected healthcare cost, job loss or auto repair its like a permanent rainy day fund. They also allow you to purchase items and pay them off in monthly installments if you do not have the money right then a there. Certain credit cards actually offer discounts at stores and rewards. For instance, when you make purchases using the credit card you can collect points such as miles for traveling on planes. Some cards may offer cash back as an incentive to use the card. They can help build your credit history. They keep a record of your expenses, helping you to monitor your financial activities for unusual use. They help raise your credit score, such as the FICO credit score, when you pay balances down by the due date. This improved credit history paves the way for lower rates borrowing rates on other loans, including a mortgage that you will need later on in life. Credit cards allow you the right to dispute billing errors and defective merchandise like a permanent recite. They also allow you withhold payments.
Some of the pros of a credit card are you can use them practically everywhere, especially overseas. They can boost your purchasing power because they can be used to buy goods and services over the phone, through the mail and online. They provide financial backup in the event of an emergency, such as an unexpected healthcare cost, job loss or auto repair its like a permanent rainy day fund. They also allow you to purchase items and pay them off in monthly installments if you do not have the money right then a there. Certain credit cards actually offer discounts at stores and rewards. For instance, when you make purchases using the credit card you can collect points such as miles for traveling on planes. Some cards may offer cash back as an incentive to use the card. They can help build your credit history. They keep a record of your expenses, helping you to monitor your financial activities for unusual use. They help raise your credit score, such as the FICO credit score, when you pay balances down by the due date. This improved credit history paves the way for lower rates borrowing rates on other loans, including a mortgage that you will need later on in life. Credit cards allow you the right to dispute billing errors and defective merchandise like a permanent recite. They also allow you withhold payments.