Monday, April 30, 2007

The Role of Credit Cards. Learn more.

I believe almost everyone knows what credit cards are used for and almost everyone carries several credit cards in their wallet. Using a credit card is like having a short-term loan that is flexible. When you make any purchases using your card, you borrow money from the bank or credit company and repay it later.
Credit cards are really convenient and can be financially useful if you handle them wisely. With credit cards you can make purchases everywhere in the world and do it easily: directly at the bank, over the phone, or online. But do not exceed credit limit of your card making purchases! Otherwise, you will pay penalty fees.
Today you can choose a credit card relating to your personal situation. If you are a student, you can apply for student credit cards that allow you starting your credit history. Businessman can apply for business credit cards or cards for small business. Bad credit or no credit at all? No problem. More and more credit companies issue credit cards right for people who want to rebuild or start their credit history. And you will be approved even if you had some problems in the past. Only apply for the right card to the right bank.
Credit cards also help to protect your assets. If you lose your card or it is stolen, you can report it to the credit company and it will deactivate the card and give you a new one. Notice, if you lose cash - it's gone and that's all.
Of course, there is a negative side of credit cards. They can be expensive and hardly controlled for people who do not fully understand the seriousness of making monthly payments. The credit card company adds a late fee and interest charges for those who do not pay on time.
In addition, several tips for you:
1. Use credit if you're sure you will be able to repay the debt.
2. Do not purchase impulsively using your credit card.
3. Save your credit card for a money emergency.
4. Make payments monthly on time to pay minimum fees and interest charges.
Good luck!

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