CREDIT CARDS: USE THEM RIGHT AND REAP THE REWARDS. (Credit Cards in general)

Member Name: stuntpilotx

Product:	Credit Cards in general
Date:	09/01/09 (5 review reads)
Rating:

Advantages: Safer money.

Disadvantages: If you have no willpower you will get into debt.

Credit cards have got a bad reputation in a society where credit is easily available, and although some of the blame should lie with the companies that offer these cards, if used responsibly a credit card can be a very useful tool, that can be a great insurance policy for your money.

All credit cards have an incredibly high interest rate, so the key is to use them wisely. Only spend what you know you will be able to pay off at the end of the month and avoid only paying the minimum. This way you will be winning as the credit card company will not be making any money from your credit card usage. If you let them charge you interest by only paying the minimum, it's like letting them charge you extra money for your purchase!

The best thing about credit cards, is that if you use them online/to book something in advance, your money is a lot more secure. For example, if you purchase something online and someone steals your identity, you will not have to pay back that money. If you book a holiday and the company goes bust, your money is safe. Whereas if you use a standard DEBIT card this is not the case as the money has left the bank, and you have paid the company, therefore they have lost your money for you.

If used sensibly a credit card can be very useful, and a great asset to have. Especially in the US and abroad where you may be charged to use debit cards, or in the case of the US you cannot use a debit card!

Summary: If you're sensible, they're a great thing to have.