Thursday, November 22, 2007

Uses of a Credit Card

credit cards
Credit Card or Plastic Money as you call it, has become popular and an essential product for everyone. People's appetite for credit just gets bigger & bigger every year. We spent almost an astonishing £92 billion on credit and debit cards every year, according to the Credit Card Research Group.

You all know very well why credit cards are so popular and important amongst us. And it has some merits and demerits which you should know before you use it.

# If you use it wisely then it can prove to be useful, convenient and help you to build up a strong credit history which would help you get loans in the future.
# They are simply hassle-free and easy to carry. It means you need not carry loads of cash in your small purse.
# That's not all, if you do a transaction using your credit card, you could avail a 49-59 days credit-free period. It depends which company's credit card you are using.
# If you are in the middle of your way and your car breaks down, then it comes to good use. You don't have enough money to get the service, over there your credit card can help you solve your problems.
# It gets you facilities to do online transcations like airline, hotel, or rental car reservations.
# It is beneficial in short-term emergencies too.
# There are other facilities wherein you may avail a cash-back, travel insurance, purchase protection and more. It depends on your credit card company's terms & conditions.

# If you over-use the card and be unable to repay through the next paycheck, then the card company may start charging outrageous interest rates.
# Your application for mortgage loans can be rejected just because of your bad credit debt remarks. Not only that, it could affect even job applications and insurance coverages.

Check out the smart uses of credit card commercial by Stacy Johnson. It is really worth watching:

You have seen the problems & I am sure thats not the end. May be there are more. Therefore try to avoid the temptation of availing an easy credit. If you use a credit card, pay it off each month. Don’t try to make a due with the plastic money. If you are really in need of a loan, then contact a reputed bank and ask for their assistance.

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