Why Have Credit Cards
Posted at by ifydcat on category CreditMany consumers think credit cards are an evil that should not be used at all. While there are a number of reasons why someone may not like credit cards, often it comes down to bad experiences with them in the past.
If they got into serious debt they probably won’t want to repeat the mistake.
Often, distaste for credit cards may have started with parents who have experienced the woes of credit cards; although, it is often a matter of seeing no need for them and avoiding the mess altogether.
Some people take a completely opposite view on credit cards and may have more than one card in use.
Very few people who use more than one credit card are actually pay off their balances each month so they ending up paying mostly high interest on what they’ve borrowed.
What type of view of credit cards do you have? The fact that you are reading this article may mean that while you do not now have a credit card, you are thinking of getting one or you fall in the middle of the two extremes.
If you are trying to determine whether you should get a credit card, it could all depend on how you handle your finances and what sort of person you are. Although, everyone would love to say they manage their money perfectly, it’s just not the case.
If you have difficulties budgeting your money, getting a credit card shouldn’t be a top priority, because you have to be ready for credit. If you have a monthly budget, and you’re putting away money into savings every month, paying all your bills on time and buying only what you need, it may be easy for you to handle credit. When you have been able to keep from going into debt, a credit card may not be a bad idea, but you still should ask yourself why you want one.
Is it because you want to borrow money to buy what you want because you just can have the right lifestyle? If this is the true, you should seriously rethink your finances and avoid gettin a credit card.
If the reason you want a credit card is because you just want to be able to just swipe your card and go when you are buying something, it is just as simple to use a debit card from your bank to make a purchase. In fact, you can use debit cards just like credit cards.
When you have confidence that you can always pay your balance off every month, a cash rewards credit cards may be right for you. This type of credit card is useful only if you pay back the balance each month; otherwise, you will be canceling out the amount you would receive from the reward points and will still owe more in interest charges.
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