Credit Cards: Are They ALL Bad? How You Can Improve Your Credit Score Here ph
Credit cards are not all bad. Of course some credit cards are better than others but overall, in order to use them without the fees and charges taking over your life, you must be disciplined. If you follow these 3 simple steps when having a credit card, it will help you and not harm you. 1. CHOOSE the right card for you and your lifestyle. 2. MONITOR your transactions regularly. 3. PAY your bill in full every month.
Here are some of the pros and cons of having credit cards. CONS 1. Using credit Cards can give you the allusion that you have more money than you actually possess. 2. Many credit card companies offer a pin and allow people to write checks or withdraw money, but the fees for these services are often not worth using. 3. Although credit card companies may have reward programs, if your bill is not paid in full or you only pay the minimum you may not be able to take advantage of the program. 4. The fine print is really small. When these companies send you their Terms and Conditions, it is usually tiring just reading the small print that lists the important user information. Unfortunately, not knowing these critical details can affect your finance history for life. 5.Credit cards are usually easy to obtain, but may take years to pay off or get rid of them. You may also be tempted to get more cards than you can easily handle. 6. They don’t usually come with information telling you how to be a successful credit card user / holder. 7. Some cards sell your credit score and information to their partners, which you may have agreed to by not opting out of this type of information sharing. 8. It is easy to over do it. Using your credit for everything may cause a person to buy more than the items that he or she actually needs. 9. Fees add up quickly if you do not pay off the entire balance. PROS 1. In today’s world you need to have credit to finance a big purchase; such as financing your own home or car. As a result, it is may be wise to have a credit card to help you build a credit history. 2. In order to be a successful credit card user you need to monitor your account/accounts and know what transactions are made and when the bill is due. Staying aware will help you be more accountable to yourself about your finances. 3. If you have discipline, you should use your credit card only when you have the cash to back
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up the purchases that you have made. By doing this successfully, you will be able to use the rewards programs as if they are extra money going back into your pocket. 4. If you develop a good credit history by being responsible with your credit cards, you will be offered a lower interest rate on goods that you may actually need to finance. 5. If you desire to purchase items online or rent a car, usually a credit card is required so it is great to have one on hand. 6. Some financial advisers do not recommend people obtain store credit cards, but if you shop at one store often having their credit card can possibly save you thousands of dollars because of their exclusive member’s benefits. Keep in mind though, with this option I only recommend that you buy items when you have the money to pay your balance in full before it is due. 7. You need to search for the right card for you and your lifestyle. If your credit card is not benefiting you and you are good at paying your bill, then you have the wrong card. 8. Credit cards are good to have in case of an emergency. Hopefully, you have an emergency fund as well, but keep in mind that a card is easy to keep with you regardless of where you are. 9. With the internet being available almost everywhere and without a computer, it is easy to know where you stand with your credit card company. If you stay aware and pay your bill on time (again, I believe it should always be paid in full) you will have not problem. If you like this post you may also be interested in how I paid off my student loans. Please comment...and I'll send you a free gift.
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Do's and Dont's of the Credit Card Game Here pf Futhermore: Credit Cards: Are They ALL Bad?
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