Credit cards: salvation or damnation?
Almost all financial advisors are going to told you to avoid using credit cards and the costs they bring. Why are they so unpopular? What are the obvious pros of credit cards?
The use of credit cards is most popular in the States and other postindustrial countries. The average American has in his wallet so much credit cards, as an average European has hard cash bills. We often forget that credit cards carry quite substantial monthly expenses,have a look at reclaim ppi for higher interest rates and constant temptation for shopping lovers. So, what are the pros of CC?
1. Temporarily solution
In times, when global financial crisis has taken our last dollars from our pockets, credit cards can offer us temporarily solution. We can shop all month and it won’t affect the balance on our bank account. BUT, use credit cards only if you are sure that you can pay the bill at the end of the month!
2. Membership benefits
Some credit cards are going to offer you many benefits and discounts if you join their club. Most often you will get store discounts, free drink or food, cheaper vacations and invitations to popular social events.
3. Online shopping
If you want to shop online, credit card is a must have thing. Internet offers many ways to pay but most of the payment types is supported by credit cards. They have proven to be the most effective and simple way to pay online. Although, researches have shown that almost 10% of purchases online has security issues. Take great care for your personal data.
4. Great for travelers
Whenever you go on a trip or vacation, credit card becomes your no. 1 companion. In some hotels, you can’t get a room if you don’t have a valid credit card. They come useful if your car breaks down or you ran out of cash. You can also get mugged or you can lose your wallet so keep in mind to store credit card separately from your cash.
5. Instant credit
Some shopping centers won’t allow you to make installment payment, if you don’t have a valid credit card. The procedure is quick, simple and you don’t need to visit your bank in person. Some credit cards even allow you to get a bank loan without approval costs.
Remember, if you don’t keep in mind the amount of money you earn and spend, nobody will. Stay on the positive side;)
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