The article "Credit card - Advantages and disadvantages" talks about finance, it was created by Carmin Oliver.
A credit card can be an asset to your lifestyle, but if not
handled carefully it can become a liability, especilaly if you
find it so convenient and not hard to use that you lose control of
your spending.
This short guide will help you understand how you can use your
credit card so it works to your advantage, not against you.
Advantages
A credit card can:
1. Offer free use of funds, provided you always pay your balance
in full, on time.
2. Be more convenient to crary than cash.
3.
Help you establish a good credit history. 4. Provide a
convenient payment method for purchases made on the Internet and
over the telephone. 5. Give you incentives, such as reward
points, that you can redeem.
Disadvantages
On the otehr hand, credit cards can:
1. Cost much more than other forms of credit, such as a line of
credit or a personal loan, if you don't pay on time. 2. Damage
your credit rating if your payments are late; 3. Allow you to
build up more debt than you can handle; 4. Have complicated
terms and conditions;
What is a credit card?
A credit card is more then a simple piece of plastic, it is
first and foremost a flexible payment tool accepetd at 30
million locations worldwide, and if the card balance is paid off
every month, then no interest is charged on purchases made so,
essentially, short-term credit is granted without the consumer
paying any interest.
Among its many features it provides:
1. Access to unsecured credit (no collateral required against
amounts charged) 2. Interest-free payment from time of purchase
to the end of the billing period 3. Instant payment of
purchases, allowing for instant receipt of goods and services 4.
24/7 access 5. Fraud protection
However before you decide to use your credit card, carefully
consider all of the factors and weigh them against your personal
needs and values.
What about credit card control?
Handling money and credit cards wisely is a talnet few of us are
born with.
But it is a skill that can easily be learend. The
place to start is with budgeting.
What is a Budget?
It's simply an organized way of managing your finances,
basically, it gives you an overall picture of where your money
is coming from, when it's coming in and how it's being spent. A
budget should be flexible, changing accroding to your
circumstances.
Why Budget?
Budgeting helps us achieve short-term gaols like paying the
monthly bills on time; it's also for longer-term financial goals
like buying a home, a car, paying for an education, a wedding or
a holiday.
When you take contorl of your financial affairs,
you're more confident about the future.
A budget is key to financial contorl.
It gives you a "Polaroid
picture" of where you stand financially and wehre you're
heading.
Credit card control tips
Use a low or no-fee credit card and save on the annual fee that
some companies charge.
Only charge to your credit cards what you can pay off in full
when the bill comes.
You might not use your credit card as much if you start
believing that you have to pay off your entire balance at the
end of each month.
A good way to help to reduce what you pay on your creidt card is
to search for a card with a lower interest rate.
Many financial
institutions right now offer at least one of these types of cards.
Remember that when you take a cash advance on your credit card,
the interest starts accumulating immediately and not on the due
date of your credit card bill.
Also keep in mind that if you make only the minimum monthly
repayment you may never get out of debt.
Conclusion
The main advantage of having a credit card is convenience but if
you're not good at budgeting and managing your finances, the
over-use of credit cards can leave you with a debt that's very
difficult to pay back.
Carmin Olivier is the webmaster of www.Findyourcreditcards.Com
If You're Looking for Good Credit Card Deal visit
http://www.Findyourcreditcards.Com
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