Credit Cards: Good or Bad

Credit Cards
By: Elyssa Murray

Pros and Cons of Credit Cards

Pros  

• They can be used everywhere even overseas
• Can help with an expensive, unexpected emergencies  
• If you lose a credit card it can be replaced unlike money that is gone forever
• Some credit cards have reward programs where you can earn cash back
• Allow you to buy now pay later

Cons

• Promote careless spending which can lead to high debt
• If balance is not paid on time expensive late fees are charged to your account which can add up overtime
• High interest rates if balance is not paid causing you to go further into debt
• Some credit cards have hidden fees that may be worth more than you actually spend on your card  

Tips for Teens: Credit Card Use

The most important thing to remember while having a credit card is to stay organized in order to be a smart consumer. One tip is getting the corresponding bank app to your credit card. This way you can receive reminders of meeting the minimum payment, when to pay off your balance and if you have gone over your daily limit. Another tip is to create a budget this way you will be less likely to spend more than what you have planned out and therefore less likely to go into credit card debt. One of the most important tips is to pay your bills on time! Late Fees can add up very quickly if bills are not paid on time. With late fees interest is also added making your outstanding debt greater and your ability to pay debts off quickly less likely. One last tip is using a rewards card. A rewards card allows you to get cash back on every purchase that is made. By doing this your credit card is paying for itself by offering cash or points at certain stores with every purchase.  

What Credit Card do you chose?

Bank	CIBC	Duca Credit Union	RBC
Card Name	Dividend Visa	Visa Cashback Card	Esso Visa
Benefits	No Annual Fee 1% cashback on Purchases Has an app connected to credit card	No Annual Fee 1 point for every dollar spent double points on gas Purchase Protection	No Annual Fee Receive points for free gas Card comes with 4500 points
Disadvantages	1% cashback is only activated when total purchase exceed $6000 Not every purchase earns you 1% cashback only the stores they have listed	Card does not come with an app Purchase protection is only active for 90 days	Free gas is only available in Esso station Card does not come with an app

Based on one's personal finances the card you choose will be different than someone else's. As a teenager I think the best option would be the Duca visa cashback card. This card earns you point for every purchase which can be used to buy anything. Unlike the RBC Esso visa where the points only allows you to purchase gas or the CIBC dividend visa which the cashback only works in certain stores. Learning about each card and what benefits they can give you and what works with your lifestyle is the best way to get the best card for you.


https://www.cibc.com/ca/visa/dividend-card.html
http://www.rbcroyalbank.com/credit-cards/rewards-credit-cards/esso-credit-card.html?_ga=1.25160638.562021777.1466002821
https://www.collabriacreditcards.ca/affiliate_duca/cards/personal-cards/pc22/card_visa-cash-back-card/
http://www.practicalmoneyskills.com/personalfinance/creditdebt/cards/proscons.php
https://www.nerdwallet.com/blog/credit-cards/pros-cons-shopping-credit-card/
http://blog.lendingclub.com/the-pros-and-cons-of-credit-cards/
http://financialhighway.com/7-tips-for-first-time-credit-card-users/
https://www.nationwide.com/guide-to-using-credit-card.jsp