Credit Cards

Have you ever wondered if there is something out there that can allow you to buy the things that you need or want while offering you many benefits? There is! Credit cards and most Americans should use them. It is estimated that 80% of American households have at least one credit card (Fast facts about credit card debt, 2006, para 10.) There are many types of credit cards, allowing anyone to choose the one best suited for his or her needs. Although there are some disadvantages to using credit cards, the advantages outweigh them by far. Most important, using credit cards can help to build credit history, which will allow the user to gain more credit and maintain a good credit score.

Many types of credit cards offer perks or rewards and different interest rates (APR). One type of card is a major credit card such as Visa, MasterCard, Discover, and American Express. Each of these may offer rewards or perks such as frequent flyer miles, points for merchandise, travel, car rentals, or cash back. Another type of card is a store or gas station credit card; this type of card is issued by a particular store or gas station. These cards usually come with some sort of a rewards program, helping your dollar go further. For example after spending a certain amount of money, you receive a 10% discount coupon toward a future purchase. Many credit cards offer low interest rates to new members, on balance transfers and to members who keep their account in good standing. However, missing payments or paying them late could result in your interest rate being raised to a higher percentage.

Using credit cards can offer many advantages. Credit cards are convenient. Carrying a credit card means you do not have to carry a large amount of cash. Unlike, cash if the credit card is lost or stolen it can be reported to the company, and then the account will be closed. If there are any fraudulent charges, the card holder is only liable for $50 (Avoiding credit and charge card fraud, 1997, para 6.) Some credit card companies hold the cardholder at 0% liability (Benefits of using a creditcard, 2010, para 8). More buying power is another advantage. The typical consumer has access to approximately $19,000 on all credit cards combined. (Average credit statistics, 2010, para 6). Credit cards are accepted in places where cash is not such as online and over the phone. They are accepted almost everywhere here in the United States and abroad. Another advantage is ease with budgeting and bookkeeping. When using a credit card all transactions, balance and payments due can be seen on one easy to read monthly statement. Reviewing this statement helps to figure out where money is going and how to cut costs if needed. With today's economy life's little bumps can cost big money, if the cash is not available a credit card is a good source for emergency funds. Most credit cards offer balance transfers, which allows the card holder to keep the annual percentage rate low.

Credit cards are evil! Many people think this way. Although there are some

disadvantages to using them, these disadvantages can be effectively overcome

by becoming a well informed, responsible consumer. One argument against using a

credit card is overspending. About 48% of credit card holders owe less than $1,000

(The truth about credit card debt, 2006, para 17). Staying within a budget and using the credit card according to what is affordable lessens the chance for overspending.