Indubitably, credit cards are convenient. You need not dive into your purse for a fiver or a tenner - even if you're skint in terms of liquid cash, your credit card can allow you to make purchases at the store if you want to, or need to.
Furthermore, this is the only safe way you can make an online or over-the-phone purchase if you come to think of it. This is more convenient than posting a cheque for payment. As you would see in this unusually structured list of pros and cons, there are cons to using something as convenient as a card, and they are as follows.
It Could Get Dodgy if You Don't Keep Track of Those Little Purchases
When you walk into that shop and hand over the card, you don't pay cash right away. Since this means the amount of money in your wallet won't be changing at all, you might forget summing up the amount you've spent thus far.
Everyone has a tendency to underestimate what they spend, and smaller amounts can add up quickly on a credit card without you even noticing. It's almost like those minute calls you make on your cell phone adding up without you knowing it.
Moreover, you will need to be even more concerned if you own multiple credit cards. In order to come up with your sum total spending per month, you will need to consolidate each and every one of your outstanding amounts per card!
You May be Paying More Interest than What Comes In
The moment you run an outstanding balance, you're paying the credit card company interest. You're also paying your credit card bill as soon as you get your wages, so you may not have the chance to earn any interest from your bank balances.
Rewards Points - AKA That Delicious Orange Vegetable Rabbits Love to Nibble On
The more debt you show you can pay back, the more credit card companies will offer to you in terms of limit and cash advances. The offers are so attractive that sometimes, it's tempting to apply for more than one credit card. Credit card companies also try to make you charge more to credit card by awarding you reward points. And as you nibble on that figurative carrot, you spend even more, all in the name of potential discounts, raffle draws, etc.
Use Your Credit Cards Wisely and Credit Card Companies Can't Use You
When you need money in an emergency and you just don't have any, there's no doubt that credit cards can be useful. And as far as qualifying for an auto loan or mortgage is concerned, it gives you additional cachet with the credit agencies (Experian, Equifax, CompuCredit) as paying your debts on time, all the time shows you know how to tame the savage beast called debt.
Always keep this in mind - with great power comes great responsibilities, and handling credit cards gives you great power. Minimize the number of loans you take out and times you use your card, and your pecuniary health should be solid going forward.
Furthermore, this is the only safe way you can make an online or over-the-phone purchase if you come to think of it. This is more convenient than posting a cheque for payment. As you would see in this unusually structured list of pros and cons, there are cons to using something as convenient as a card, and they are as follows.
It Could Get Dodgy if You Don't Keep Track of Those Little Purchases
When you walk into that shop and hand over the card, you don't pay cash right away. Since this means the amount of money in your wallet won't be changing at all, you might forget summing up the amount you've spent thus far.
Everyone has a tendency to underestimate what they spend, and smaller amounts can add up quickly on a credit card without you even noticing. It's almost like those minute calls you make on your cell phone adding up without you knowing it.
Moreover, you will need to be even more concerned if you own multiple credit cards. In order to come up with your sum total spending per month, you will need to consolidate each and every one of your outstanding amounts per card!
You May be Paying More Interest than What Comes In
The moment you run an outstanding balance, you're paying the credit card company interest. You're also paying your credit card bill as soon as you get your wages, so you may not have the chance to earn any interest from your bank balances.
Rewards Points - AKA That Delicious Orange Vegetable Rabbits Love to Nibble On
The more debt you show you can pay back, the more credit card companies will offer to you in terms of limit and cash advances. The offers are so attractive that sometimes, it's tempting to apply for more than one credit card. Credit card companies also try to make you charge more to credit card by awarding you reward points. And as you nibble on that figurative carrot, you spend even more, all in the name of potential discounts, raffle draws, etc.
Use Your Credit Cards Wisely and Credit Card Companies Can't Use You
When you need money in an emergency and you just don't have any, there's no doubt that credit cards can be useful. And as far as qualifying for an auto loan or mortgage is concerned, it gives you additional cachet with the credit agencies (Experian, Equifax, CompuCredit) as paying your debts on time, all the time shows you know how to tame the savage beast called debt.
Always keep this in mind - with great power comes great responsibilities, and handling credit cards gives you great power. Minimize the number of loans you take out and times you use your card, and your pecuniary health should be solid going forward.
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