To many people credit cards are a necessary evil. Using credit cards unwisely can lead to significant debt, exorbitant monthly payments and eventual financial trouble.
On the other hand, credit in general and credit cards specifically provide access to many of the material things we count on to provide us with a better life, and unless you have an ample supply of cash on hand, credit will play a significant role in your life. Credit allows access to large purchases and good credit affords the same buying power at better rates of interest.
When used correctly, credit cards can make some of these large purchases or improve credit by demonstrating a positive credit history over an extended period of time.
At different points in your life, you may find yourself looking for a credit card. There are countless types of cards with varied benefits, so when you apply for a credit card, consider your circumstances and the kind of card that best fits your situation. The Low Interest Credit Cardsare reserved for those with good credit. These cards typically offer low rates, low fees, and potential rewards for making purchases.
Some cards provide a combination of these benefits so it is important to determine what fits your needs the best and make your choice accordingly. Good personal credit will ensure you plenty of appropriate options so you can afford to be selective.
If your credit is already damaged, your priorities may be slightly different. Instead of choosing the best card, the challenge may be to find and be approved for a Low Interest Credit Card—a credit card for someone with bad credit. Despite the bad credit, there are still options. A traditional card may work, but if not, you can still rely on applying for a secured credit card. This card secured by a cash deposit allows you to rebuild bad credit and work your way towards better deals and a borrowing position of strength.
Finally, if you own a business and need available credit for operating funds or business purchases, there are plenty of good Low Interest Credit Cards. Many of the benefits available for consumer cards are also offered to commercial clients as well. Many businesses just need the convenience credit provides so they make purchases and then pay balances monthly. This is the ideal way to use credit because balances don’t carry over into the next month. If purchases are paid for within the card’s stated grace period, interest is not charged and so these purchases are essentially interest free.
A business card becomes even more beneficial if it is a rewards card because every dollar spent accumulates points or credit that can be used for other purchases like airline tickets, free fuel, gift cards, or cash back.
The best case scenario is to use credit cards for convenience, pay the balance monthly to avoid interest, accumulate rewards that can be used for bonus purchases, and ultimately build good credit that makes future borrowing a better and cheaper proposition.
Sites like treesfullofmoney.com can be a useful resource to educate you on the positives and negatives of credit and can also give personal perspective on the pitfalls of credit if used unwisely.
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{ 3 comments… read them below or add one }
I agree with you — it’s how you use your credit cards. We like to earn bonus rewards. But discipline is still required, since paying interest pretty much destroys the benefits one gets.
We signed up for bonus points with both our Credit and Debit Cards with USAA several years ago. I had completely forgotten about the points and when I look at “rewards” section of my account last month I had enough points to cash in for $850 in cash, or gift certificates to stores restaurants etc.
You can easily get into trouble however if you are not responsible with how you use them!
I agree Ben. Credit Cards are a necessity in these days and when used responsibly, can help out greatly with other areas of life. It helps establish a good credit score that can help when trying to get financing and buy cars, house, etc. Again the word is responsible. Most people aren’t with credit cards.
Craig
http://www.budgeptulse.com