Credit cards, should you have one?
Good question. Credit cards can be both good and bad it all depends on how you use them.
For those who like the idea of borrowing thousands of dollars each month without interest (when you pay your credit card balance in full each month) then using a credit card is ideal.
Remember credit card companies only charge you interest when your balance is not paid in full when the bill is due. Just think about the advantages of borrowing thousands of dollars for a period of between 30 to 60 days and having it cost you nothing. Granted, credit cards offer the cheapest form of credit but there are pitfalls.
If you are looking to establish a credit rating you need to show you have the ability to pay back a loan. In other words, a good credit rating is like having a good reputation.
If you can’t use your credit card wisely and have difficulty paying your credit card bill on time then you will get a bad credit rep.
Being late making your payments the odd time is one thing, missing the odd payment from time to time is much worse. If you can’t make wise purchases and don’t have the money to pay off your credit card bill in full each month then you shouldn’t have a credit cardperiod.
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3 Responses to “Credit cards, should you have one?”
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When you’re dealing with credit cards, you’re playing with fire. Unfortunately, there are plenty of people out there who don’t realize that, and make all sorts of dangerous mistakes with their credit cards every day. Thanks for sharing this info.
Terrific article here! Definitely, credit cards can flush with you with immediate cash…and if you pay in full every month, you won’t be paying interest. You’ll save money this way and protect your credit fully.
However, if you want to demonstrate your ability to pay off your credit cards, it’s advisable to leave a very small balance every month (or in other words, spread out your repayments across 2 or more months).
This will look even better in creditors’ eyes. Remember, creditors gravitate to those who they can benefit from. Paying off balances in full every months won’t benefit creditors. They can’t make any money off the interest if you do so.
If you are financially responsible, then I would advise you to spread out the payments. It could help you down the line when you want a credit limit increase or obtain better cards.
So this is another thought to think about!
Credit cards are created to make money for banks! not for you! You have to question anything that a bank is eager to do for you; you can be sure it’s not in your best interest. But if you decide to get credit card look at http://www.requestcredit.com is a solid resource.