Credit Cards: Give yourself some credit?

There are many blogs, books, seminars, and reports out in the blogosphere that proclaim the credit card as the Devil’s tool, pure evil. They are reviled as pure usury with interest rates above 20% or even 30%. They are described as creating credit card ‘slaves’ – people who can only afford to pay the monthly interest minimum, if anything… Credit cards are having an increasingly bad reputation.

However, I find credit cards, if used properly, really have a surprising number of benefits that outweigh cash purchases:

* interest free period on purchases (until your bill due date) – very useful;

* points for purchasing rewards: gifts or airmiles;

* cashback credit cards where every time you spend you earn a little ‘cash’ back;
* 0% balance transfer deals where you pay 0% interest for a period;

* they can help build your credit history;

* many cards also have additional benefits: including free parking, product and travel insurance, … many of these benefits depend on the affiliations of the companies that are providing the credit card services or sponsoring them.

Before you choose, you will need to compare credit cards carefully and think long and hard about the kind of rewards you would like most. You will also need to examine the interest rates and the APR’s. And you most definitely should read the terms of service.

Sponsored by Credit Card Store.

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2 thoughts on “Credit Cards: Give yourself some credit?

  1. Bernard Ng

    Credit card is just a tool. The real problem is how people are using it. I am surprised to see people using credit card without knowing what is the interest rate and without giving thoughts about whether they can afford to pay up later in the month or not.
    The root of problem is the one using it.

  2. kennethdickson Post author

    A lot of people calculate the amount each month they can afford BEFORE they decide whether to buy something or not. The interest rate calculation is merely a number. The real question for many borrowers is: can I afford $100 per month payments, or $1000 or whatever.


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