Learn about the benefits and drawbacks of using credit cards.
Log in jason.carey a year agoPosted a year ago. Direct link to jason.carey's post “would it be safer to use ...” would it be safer to use cash more than a credit card? • (8 votes) David Alexander a year agoPosted a year ago. Direct link to David Alexander's post “That might depend on how ...” That might depend on how good you are at self-control. When you only use cash, you cannot spend more than you are carrying. However, when you only use cash, you do not leave a record of spending behind you that serves to help you grow a credit rating. If you have good self control, it might be better to use a card, so long as you can manage to make your payments on time every month. That way you will develop the kind of "borrow and repay" record that helps you develop a credit score. (12 votes) Sir Knight 7 months agoPosted 7 months ago. Direct link to Sir Knight's post “So what is the biggest di...” So what is the biggest difference between a credit card and a debit card? I don't know much about the latter, but they seem to have similar functions. • (3 votes) Ravyar Mohammed 7 months agoPosted 7 months ago. Direct link to Ravyar Mohammed's post “a debit is your money, a ...” a debit is your money, a credit is the bank's money trentonrcolwell a year agoPosted a year ago. Direct link to trentonrcolwell's post “Would it be better to not...” Would it be better to not own a credit card? • (5 votes) Scoreboard_HR 9 months agoPosted 9 months ago. Direct link to Scoreboard_HR's post “It depends on your abilit...” It depends on your ability and your opinion. If you are good at only spending as much as you need at that particular time, and you can pay bills when they are needed, then the credit card is right for you. If you are somewhat in a risky financial situation, though, I wouldn't recommend one. It wouldn't help. Now, there are some downsides to not having a credit card. You won't be able to build your credit score as easy. These decisions are a matter of personal preference. Hope this helps! (8 votes) LoloR21 . 7 months agoPosted 7 months ago. Direct link to LoloR21 .'s post “In Argentina, using credi...” In Argentina, using credit cards is very beneficial, since having a high monthly inflation (almost 12%), the money will have less value in 1 month than at the current time (therefore you end up paying the products more "cheaper"). I understand that in the USA the use of these cards is a bit rejected, since it is associated with a constant debt only in exchange for a "good credit history"? Finally, I don't know if it exists in the USA, but in Argentina there is the possibility of paying for some products in fixed installments without interest (generally 3-6 installments), this can only be done with these cards (it helps a lot for inflation since in 6 months we have 50%). • (7 votes) JOANCE211 a year agoPosted a year ago. Direct link to JOANCE211's post “what purchases should mak...” what purchases should make using a credit card? • (5 votes) David Alexander a year agoPosted a year ago. Direct link to David Alexander's post “Don't purchase anything t...” Don't purchase anything that you can't pay off. Do purchase things that have lasting value, like appliances. Avoid spending more than a set amount (that you can easily pay off monthly) on things like chips, salsa and music downloads. Financial learner 4 months agoPosted 4 months ago. Direct link to Financial learner's post “Is there a credit card fo...” Is there a credit card for 9 year old kids • (4 votes) David Alexander 4 months agoPosted 4 months ago. Direct link to David Alexander's post “No. Most banks require a...” No. Most banks require a person to be 18 years old, a legal adult, to have a credit card. If, at age 9, you want to have a credit card, have your parent get one with you on the account. Then you can use credit, but you won't develop a credit score from it, and if you use it poorly, you'll ruin your parent's credit score. (3 votes) abbygail a year agoPosted a year ago. Direct link to abbygail's post “How does the credit card ...” How does the credit card have so many fees • (3 votes) David Alexander a year agoPosted a year ago. Direct link to David Alexander's post “Dear Abbsex (Does Abb st...” Dear Abbsex (Does Abb stand for abnormal?) A credit card makes money for the bank in several ways. When you purchase something from your local store with a credit card, and it costs $100, the bank only pays the store $95 or $96. That's one way the bank makes money. If you don't pay the full $100 within 25 days, the bank charges you interest on the loan. That's the second way the bank makes money. To consider you (take and process your application), the bank charges for the service. That's an application or membership fee. That's another way the bank makes money. When you make your monthly payment late, the bank charges a "late fee". That's another way the bank makes money. All of this piles up, and the bank pays dividends to its stockholders. That's how business works in a capitalist economy. (5 votes) sinhr6453 10 months agoPosted 10 months ago. Direct link to sinhr6453's post “How does the credit card ...” How does the credit card have so many fees • (3 votes) David Alexander 10 months agoPosted 10 months ago. Direct link to David Alexander's post “The credit card has so ma...” The credit card has so many fees because that's how the issuing bank makes money, by charging you to use its services. (3 votes) takwain2005 8 months agoPosted 8 months ago. Direct link to takwain2005's post “What's the best credit ca...” What's the best credit card companies? • (2 votes) x.asper 8 months agoPosted 8 months ago. Direct link to x.asper's post “The answer changes based ...” The answer changes based on your needs. (5 votes) DamianGonzalez 7 months agoPosted 7 months ago. Direct link to DamianGonzalez's post “Is it true that if you go...” Is it true that if you go over the limits on a credit card they cut the card with scissors? • (3 votes) David Alexander 7 months agoPosted 7 months ago. Direct link to David Alexander's post “There's no need for the b...” There's no need for the bank that issued the card to cut it with scissors. But if you are overspending by using the card, a credit counselor, in the old days, might well cut your card into tiny pieces. Nowadays, when all you need to do to use the card online is to know the 16 digit number plus the 3 digit security code on the back, the scissors aren't of any value for trimming your ability to spend. (3 votes)Want to join the conversation?
Credit cards are issued by banks, which are in business to make money for their stockholders.
If you are looking for a card that allows a better grace period and lower APR, you will need to do your own research to find those companies. If you travel more, look for a card with lower foreign transaction fees.
It's for you to research to find what card suits you.
