Credit cards good. Really.-Seriously. You may feel that everyone should have at least one credit card to help create credit, use it in cases of emergencies, theft and many other advantages. You may however realize that not everyone agrees with me and that loyalty cards are bad for many people.
There are several things you should know when dealing with credit cards. It is important that you understand all the advantages and disadvantages when dealing with your finances. The finances are one of the most critical aspects of your life, and you must make the most of them.
A reader with credit card issues formerly asked me to discontinue credit cards: are credit cards good or bad?
You know my answer to that question when you read the first most sentence in this article.
Whether you’re draining your money, building cash, or trying to make rewards, credit cards can be a huge asset.
Nonetheless, often credit cards can hurt your finances.
Read up to see the good and bad credit cards, and the ugly side.
- Good.. Create credit history: billing and paying small amounts is a good way to set up credit history. Offering loans (even better loans such as student loans and mortgages), stable insurance and even landing jobs can be more difficult without a credit history.
You may have lower loan rates if you can secure a loan without a credit history. You can easily transfer money through bank balance transfer app.
A good history of loans can help you save thousands of dollars on all of your biggest loans. For example, the difference between borrowers with a good credit history and a bad record may be thousands of dollars while applying for a mortgage loan.
One of the best ways to build your credit history is to keep a credit card and make timely payments.
- Funding emergency: Everyone has $1,000 to buy an emergency airline bill, car repairs and natural disaster etc. a real emergency fund is always the best, but not everybody.
And, feel that it is much better to pay 15% than to take a payday loan in an emergency. Many payday loans have almost 1000 percent interest rates if they are left for a whole year. You can opt for credit card balance transfer to bank account.
Like we said, it’s a much better idea to have your emergency fund in cash on a savings account, but if you don’t, the credit card is one of the best ways to make your bills pay for them. It may be difficult to pay for bills if something fails or accidents occur but that’s where your credit card is going to arrive. You and your friends will be given the money they want.
- Limited guarantee: Most businesses give comprehensive guarantee on products that you purchase with their ticket. Extended warranty: In some cases, assurances are tripled by the producer. This isn’t a bad thing!
- Credit cards usually have a period of grace after which payment is due. This can take you several months, so you can earn interest on your purchases. Although this might not be a big deal for a hundred dollars, you can potentially earn a decent sum by charging a thousand dollars every month and adding it up over a year. You can immediately withdraw the money from your account with cash or debit cards, and no interest is paid on it.