But the credit card has far from ‘had it’s day’. There are still a wide range of positives that you can have from owning a credit card and spending money on it.

How a Credit Card is Useful

First and foremost it allows you access to money that you don’t have. This is both a positive and a negative – but the positive side is very useful. It means that you can access money when you would otherwise not have any funds – especially useful in an emergency and you just have to spend money on something (like a new boiler, or gas money home).

It enables you to take that peace of mind with you anywhere you go. You can always know that should the worst come to the worst there is always a bit of money that you can fall back on.

That ability to travel with you is useful as well. A credit card can go almost anywhere. It’s not like it takes up much room so you can take it wherever you go, and unlike cash a credit card is able to be used in almost all countries as well.

It is also useful from a distance as well as travel. You are able to buy over the telephone, over the internet, via mail order, however you can think of. If you are looking to buy something that you can’t personally see right now a credit card is the answer – because it is an easy way for the merchant to accept money over a distance.

It also affords you considerable protection as well. You are able to do something called a ‘charge back’ with credit cards. This means that if you feel that you were sold something that was misrepresented and they won’t take it back you can raise a dispute with your credit card company. If you are right they will take back the money and refund you… providing you excellent protection should any problems arise.

You are also protected from fraud as well. If, when buying over a distance for example, someone takes your card details and starts using it fraudulently, all you need to do is talk to the credit card company and they will look into it – if they feel you are correct they will then refund the money – perfect for peace of mind when distance buying.

Obviously there are down sides to a credit card as well, such as interest charges, fees for missed payments etc. But these negatives are out weighed by the positives that you are able to gain from having a credit card – even one that you only use from time to time.

A Credit Card – An Amazingly Useful Tool is a post from: Best Credit Cards

But why is it such a big mistake?

The Small Print

In almost any deal that involves credit or debt you ALWAYS need to be considering the small print. We could talk generalities but it might be more illuminating to consider specifics for a second. Let us take a look at credit cards:

With credit cards you might think that you are getting a great interest rate… but that is often just a cover charge. Many credit cards offer a wonderful interest rate for the first 6 months, but after that you will revert to the ‘normal’ interest rate which is far less attractive and will, in fact, be likely to cost you money.

Many credit card companies try to hide their fees. Everyone will miss the occasional minimum monthly payment – even if for nothing less suspicious then forgetting to make the payment. Very few companies are prepared to admit just how much they will charge you for this kind of problem.

Monthly payments are something that is creeping into every day life for such things as credit cards. We’re not talking about minimum monthly payments for money that you owe, what we mean here is monthly payments for using their services. This information will usually be hidden in the small print.

What does any insurance you have on the card cover you for? Many companies will be happy to tell you that there is insurance on the card and any purchases made by it – but they are less forthcoming about what it actually covers.

Credit cards, as in this example. And debt in general, can have a lot of hidden extras. Always read the fine print before signing up – otherwise you are playing fast and loose with your finances.

Pay Attention to the Fine Print is a post from: Best Credit Cards

First, you should think about how you plan to use the card. While some people use credit for larger purchases, and plan to pay the bill off over an extended period of time, others use their credit card as a convenience instead of carrying a lot of cash around, and they subsequently pay the balance off in full every month. If you plan to use the card for large purchases for which you will carry a monthly balance, you should be paying particular attention to the annual percentage rate of interest on each card.

This rate can vary quite a bit between cards, so before choosing a card, research this carefully and select the card that has the lowest rate for the style of purchasing that you plan to use the credit card for. You will also want to make sure you understand how the finance charges are calculated. This is the type of information that is usually in small print so make sure to ask lots of detailed questions when speaking to a card representative about what the conditions are of their particular card.

If you plan to pay off your card balance every month to avoid finance charges, then you will want to pay particular attention to what the grace period is for the card. This period varies between cards, but as a rule, it is stated in the number of days from the billing date. If you get a credit card with a longer grace period, you will have more time to pay your bill before you incur a fee for the month. However, you will want to understand the terms of the grace period because sometimes, special rules apply, such as what would apply to new charges when you already have a balance due on the credit card. These special rules are how the company makes their money.

There are also other types of fees that are sometimes associated with credit cards. These can vary between banks and card providers, and they can sometimes be difficult to figure out. Some common fees that are often associated with credit cards are late fees, annual fees, and fees that you will incur if you go over your credit limit. There might also be other types of convenience fees for transactions such as requesting additional statements, or for making your payments over the phone. To avoid surprises later, make sure you clearly understand these fees before getting the card. Understanding the fees and rules will allow you to use your credit card without incurring unnecessary costs.

Paying Too Much on Your Credit Cards? is a post from: Best Credit Cards