Credit cards, we all have at least one of those little plastic cards. Credit cards can be with low interest rates and they can be with high interest rates. You can buy services and/or products online or over the phone with a credit card. You can book a hotel or a flight with credit cards too.
Credit cards are an easy way to establish or reestablish your credit. If you donít have a credit history, you can get a secured credit card (requires certain deposit). If you already have a good credit history, you will qualify for unsecured credit card. Having a credit card can be very convenient, when shopping. Credit Cards are good as a source of emergency money. The down side to the credit cards is that sometimes people spend more than they afford and they get deep into debt.
Some credit cards have very high interest rates and if you run your credit card debt up too high, it might seem impossible to keep up with the payments. If you do not make your payments on time, you will be charged late fees that will be added to your credit card balance. If you go over your credit limit, you can be charged over limit fees or the card company may refuse the transaction.
If you just pay the minimum monthly payments on your credit card(s), it can take a very long time to pay off your credit card debt. Sometimes people have such a hard time that they need to take out a debt consolidation loan or work with a debt counselor in order to pay off their credit card bills. Be very careful not to overspend on your credit cards.
Use your credit card(s) responsibly. If you buy something on your credit card, pay the balance off at the end of the month. This way you wonít be paying interest on your purchase. Do not buy products on your card that you cannot afford.
However, credit cards have some pros. Credit cards provide an easy way to reestablish your credit or to start building a credit history. If you have a bad credit or no credit at all, you can apply for a secured credit card. With a secured credit card, your credit limit will usually be equal to your security deposit. The deposit will be held in an interest bearing account.
Many payment options today are only available using credit card, thatís why credit cards also provide you with a convenient way to pay for goods and services. You may need a credit card to make a purchase online or to book a flight on an airplane. Having the credit card will provide you with the ability to do so.