For the countless reasons to hate credit cards, there are more reasons to love them. From building a credit profile to providing immediate access to cash – a credit card is a useful financial tool for any individual.
Like all financial tools, a credit card has its fair share of advantages and disadvantages. Among the plusses is its ability to help in emergency situations, provide holders with cash back and other rewards such as online purchases, extra insurance protection especially when you have lost your wallet or making purchases online.
The disadvantages of using the credit card stems from the cardholder’s use of the instrument. If balances are left unpaid or not paid in full, interest can accrue quickly and retard the individual’s credit rating.
Nevertheless, there are many reasons to love the card. Here’s Buzzz Magazine’s love list…..
Online Shopping Is Easier
Unlike with a debit card, you can spend more money than you have on the account — although it is not recommended. However, in the event of an emergency like a car accident or travel hiccup, you can spend more money than you have in your bank account without worrying you will incur a fee.However, you will get charged an over-the-limit fee if you exceed your credit limit, even if it’s because of interest charges. You should always try to keep your credit card balances as low as possible relative to your credit limit, because a high debt-to-limit ratio on your credit card can negatively impact your credit score.
No Overdraft Fees
If you don’t have a form of electronic payment i.e. debit card, credit card, gift card, PayPal, etc. you can’t shop online.The benefit of a credit card is if your credit card number gets stolen because of an online transaction or insecure internet connection, you have those good fraud protections to put you at ease.
Helps in an Emergency
If your child has a medical emergency or your car breaks down, and you don’t have the money in your bank account, how will you pay for it? Ideally, you would have an emergency fund to cover unexpected expenses, but in this economy, it is usually unlikely. Here a credit card can come in handy. Don’t let that balance hang out too long though, you can end up paying more money in interest the longer you wait to pay off your debt.
To continue reading, purchase Vol.8 #2, 2015 Issue.
Share this post:
For the countless reasons to hate credit cards, there are more reasons to love them. From building a credit profile to providing immediate access to cash – a credit card is a useful financial tool for any individual.
Like all financial tools, a credit card has its fair share of advantages and disadvantages. Among the plusses is its ability to help in emergency situations, provide holders with cash back and other rewards such as online purchases, extra insurance protection especially when you have lost your wallet or making purchases online.
The disadvantages of using the credit card stems from the cardholder’s use of the instrument. If balances are left unpaid or not paid in full, interest can accrue quickly and retard the individual’s credit rating.
Nevertheless, there are many reasons to love the card. Here’s Buzzz Magazine’s love list…..
Online Shopping Is Easier
Unlike with a debit card, you can spend more money than you have on the account — although it is not recommended. However, in the event of an emergency like a car accident or travel hiccup, you can spend more money than you have in your bank account without worrying you will incur a fee.However, you will get charged an over-the-limit fee if you exceed your credit limit, even if it’s because of interest charges. You should always try to keep your credit card balances as low as possible relative to your credit limit, because a high debt-to-limit ratio on your credit card can negatively impact your credit score.
No Overdraft Fees
If you don’t have a form of electronic payment i.e. debit card, credit card, gift card, PayPal, etc. you can’t shop online.The benefit of a credit card is if your credit card number gets stolen because of an online transaction or insecure internet connection, you have those good fraud protections to put you at ease.
Helps in an Emergency
If your child has a medical emergency or your car breaks down, and you don’t have the money in your bank account, how will you pay for it? Ideally, you would have an emergency fund to cover unexpected expenses, but in this economy, it is usually unlikely. Here a credit card can come in handy. Don’t let that balance hang out too long though, you can end up paying more money in interest the longer you wait to pay off your debt.
To continue reading, purchase Vol.8 #2, 2015 Issue.
Share this post: