Now, what comes to your mind when you think of credit cards? Well, to some people it means having alot of extra cash that doesn't belong to us, at that moment, but we have an option to spend it. If decided to spend the money issued on that credit card, you must now take initiative, that it's yours. I know you're wondering, " what does she mean by that" well I'm going to let you know the ins and outs of all of these wonderful credit cards and the offers that comes along.
When signing up with any credit card offer you must read the full terms ( in person or on computer) before accepting the offer.
The main thing that you want to look for in these offers are LOW INTEREST RATES. Yes, this determines how much you are going to pay that company (credit card) back on each dollar that you spend. For example, you don't want to have to pay $50 just because you spent $25 but, you will if you decide to have an interest rate of 8% or more. Remember, low is what we're aiming for!
Then you want to make sure that there won't be any increase in your rates after a few months because, they will try to trap you in believing that you have a fixed rate(stays the same the whole term), when in reality , its variable(changes). Also, make sure you know and fully understand the rates for balance transfers, purchases, and cash advances are sometimes DIFFERENT. They will try and trick you by only telling you one rate, but I know next time you'll be prepared. This is very VITAL when signing up for a credit card offer!
Credit card gives you the freedom to travel without taking cash. It also allows you to repay the amount without any interest within the grace period. credit card has now become the status symbol. credit card also facilitates to purchase good or services of any amount even if you don't have the money. BUt of course up to the limit of card.
I have credit cards because I need to buy photography equipment that I'm making money off of. I pay my bills on time and every few months ask them to increase the balance limit and decrease the interest. It's been working well for us, and over time our credit score has been going up.
On the positive side
1) Credit card enables a person the security of travelling without bunch of Cash.
2) One can track the spendings and even pay off during the grace period without any interest. 3) Credit card can be used when you need cash in emergency and you are short of cash.
4) There are many 0% interest EMI products one can buy through a Credit card and pay on installments.
5) Several companies even offer discounts on credit card purchases because of the promotional tactics and tie up with Banks to increase credit card spendings.
6) Credit card gives you the convinience of shopping online or buys tickets etc.
On the negative side
1) Credit card encourages one to do impulsive buying or spending beyond affordable limits.
2) The interest on credit card can be as high as 36% per annum.
3) Credit card cash is not your own money. It is like a loan and if you do not pay back properly your reputation is at stake.
The very basic brick behind credit card is the temptation of human mind, if you feel that you can control temptation with ease there is nothing wrong in having a credit card.
by Rebecca Graf7 years ago
What questions would you like to see answered about credit card debt?
by Davinagirl36 years ago
My husband and I are looking to buy a house in the upcoming year. We have run into some trouble looking for a lender because our credit is, for lack of a better term, crap! I am looking for ideas on how to...
by Uneducated opinio5 years ago
Try and refrain from using a credit card for any purchases that are not a necessity. Things want should he paid in full to avoid getting stuck in ungodly amounts of debts. I learned this lesson a little late but I did...
by Joms20115 years ago
I could hardly imagine how some would have lived with it !?
by Gary Anderson6 years ago
I just wrote a hub on this, but what I want is to have a discussion here. This is the issue: the senate voted on 5/19 to forbid the states from setting caps on interest rates for credit cards. The injustice of this is...
by sandra rinck8 years ago
Let me start off with roolllff! Everytime I look at a bill I get sick, everytime I need to bust out a credit card just to make it to the next month I wanna puke. Trying to get along in a busting economy is...
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