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Benefits of Using Credit Cards
Finance / Investing Author: Melanie Simpson
Benefits of Using Credit Cards
Nowadays people swipe their card to pay for items. We are referring to making purchases with credit cards. Everywhere you go you will find that almost everyone uses some type of card, be it debit or credit to complete financial transactions. Credit cards are easy, common and convenient to use, they fit inside of your wallet and can go anywhere you can go. At some locations if the minimum amount is less than $20 you won't even need to sign. Today I am going to tell you some of the many pros and cons of credit card use and how to go about getting a great credit card with a low interest rate.

Let's go over the usage of a credit card and where the funds come from to pay for the item or service when you swipe your card. Every credit card comes with a pre-determined limit as to how much you are allowed to spend. Each month you are required to pay back the money you spent to the credit card company. If you are able to pay the amount in full you may do so but they will set a minimum amount for you to pay. Any amount left over that was not paid in full will be carried over and they will apply your Credit Card APR (Annual Percentage Rate) to that amount over that period of time. Credit Card companies offer different rates of interest depending on the type of card you want and your current credit score. Some companies even offer discounted interest rates during promotional events.

Now that you know what a credit card is and how they work you should know some of the benefits of having a credit card. When you need a small financial cushion credit cards can really help. You may not be carrying any cash and it would be inconvenient to go to an ATM so credit cards can make it much easier to pay. If it is an emergency and you really need to withdraw cash you can use credit cards to do so (although we do not recommend it unless you really need the cash). 

No matter how convenient swiping credit cards are there are drawbacks to having them. There are however, drawbacks to having a credit card. One negative aspect of having a credit card is the ultra-convenience that it provides. If you continue to make purchases but fail to pay them off and keep a balance, those purchase amounts can add up quite quickly. Interest amounts on top of the required payment can really add up over a short amount of time. By making the minimum required payment every time it could take years to pay off the entire amount if you don't spend any more.

Check Credit Card APR (look for 0 Credit Cards APR)

Do not fall trap to racking up payments from having high credit card debt. First, look for 0 credit card interest rates and keep track of how much you spend daily, weekly and monthly. As I said before, different credit card companies offer different interest rates based on certain factors. Credit card companies will take your credit history into account in determining if you even qualify to get a credit card and what APR you will receive on that card. If your credit record has several late payments they will not even issue you a credit card or set the highest interest rate if you were to receive one. On the other hand if you have always paid on time and never missed a payment your credit history is blemish free and you will be rewarded with not only an approval for a credit card but the lowest annual percentage rate that they allow. Compare credit card rates over several cards because you may find that come credit card companies will judge your credit history with more lenience than others. Take advantage of online sites that present a list of low APR credit card rates for you to see. At these online comparison sites you can also check your credit report before applying to any of the credit card issuers.

Having a credit card really frees up a lot of hassle and makes life so convenient but make sure to only use your credit card when necessary and not swipe on impulse. It can be high risk if you don't watch how often you are using your credit card. Responsibility is key. Remember to think things through before making a large purchase with your credit card. Plan accordingly and be financially responsible and getting a credit card may be the best thing to ever happen to you.
Total Views: 451 | Approx word count : 803 | 08/31/2010
Writers Resource: 30BestCreditCards.com provides advice and strategies to help you find the best 0 credit cards offer. Search and compare credit card deals: gasoline credit card, low APR credit cards, balance credit cards, cash back cards and more to find the most suitable credit card fast.





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