Credit Cards and If They Are Worth It

Aren Swann-Gurka

 The Good:

• They can have very positive start up bonuses such as a quantity of money when you sign up or points with every purchase that can be redeemed later on. 
• If you sign up for a credit card with a cash back promotion you can receive a percentage of the money you spend back.
• It's not your money so when you spend money you still have yours in your bank until you pay your credit card payments.
• Most credit cards come with a lot of different insurance such as travel insurance, rental car insurance, and a lot more.
• If used responsibly your credit card can give you very good credit which is passed on and seen by bureaus which will be helpful in life later on.

The Bad:

• Although they can help your credit score they can also really damage it if you don't know what you are doing.
• They charge very big interest rates that can get you caught up in a lot of debt very quick 
• Some cards will charge you start up fees and on top of that annual fees or percentage rates that aren't very nice to your bank.
• They can very easily encourage impulse buying costing you more and more each day on things you might not use.

As you can see the bad is basically just the contrary of all the good things about credit cards, except there is a bit less and that's only you if you use your credit irresponsibly. As long as you buy the correct card, know what you are doing and do not go on a spending craze every weekend you will be safe. Before anything else I will explain what a credit card is. Yes its a plastic card, yes its a way of paying, isn't that a debit card? No, Do not get these mixed up a debit card is your money a credit card is not. Everything you pay with using a credit card will need to be paid back later but at the time it does not take anything out of your bank. They are very useful in that sense and can get you out of, and in, from tricky situations. 

Now I am not saying credit cards are the best things in the world, what I am saying is as long as you are aware of the bad things about credit cards and you have a fair reason to use them, by all means, you should get one. The points and credit it can make you alone is a huge reason to get one and they can help you for a long time. Now if you seem to have made some mistakes along the way do not panic you can get out of it. Do not go ahead and buy another to get out of debt it will not work as well as you think.

     

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