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.