Economics Blog » Credit Cards

Credit Card Advantages

admin — Sun, 20 Mar 2011 00:19:51 +0000

People often ask about the pros and cons of using a credit card. We often tell them that there are no cons, but this comes with as asterisk at the end, obviously, which we explain right away. A credit card in itself is harmless; a credit card in the wrong hands can be quite harmful. This is why we always tell people looking for advice on credit cards that the number one thing to do is to carefully ponder each time you intend to use the credit, and that the number one thing to ask is whether you can really afford what you are buying, and subsequently if you really need that which you are buying.

But the pros are a much more compelling argument for using credit, and they are plenty nowadays. Banks have realized that it is within their best interest to have people use credit, not just because of the money they can potentially make out of interest rates, but mainly because if money is moving around, odds are it is generating more money and more business. And banks often prefer not to make money out of these transactions – a good example of this is the 0% balance transfer credit cards, where the bank happily chooses not to be paid certain fees in order to get your business. This ends up being more than an offer or a perk – it is a tool that you can use to get the best out of your money and your credit.

Another good example is the interest free credit card. Having an option not to pay interest on your debt, even if it’s only for a limited period of time, really expands the array of things that you can do with your card and, inherently, the amount of things that you can actually purchase with it. Having the pesky interest removed from a purchase may make it look a lot more interesting than it was initially. And, again, what the bank wants is your service and to keep the money moving – so much so that it will forego receiving money from interest. If you combine this with other offers and rewards that you might get from using your credit card – things like airliner miles, discounts at stores and gym memberships and coupons, among others – you may come to realize that using your credit card ends up saving you money, and that is something that we can all stand behind.

Help for Students

admin — Thu, 19 Nov 2009 17:55:59 +0000

Generally possessing little or no credit history, college students still need a credit card which creates a problem when they attempt to obtain a traditional card. Today, student credit cards are designed specifically for those enrolled in universities and four-year colleges. These card actually help them to create and build a credit history. Student cards are somewhat different in terms of rewards and benefits in comparison to consumer cards which can make them the best credit cards tailored just for them. This type of card, when used responsibly, can be for first step in building a solid credit history making it easier to qualify, in the future, for those higher credit limit cards. The Discover Student Card has no credit history required, no annual fee and 5% to 20% cashback Bonus through their exclusive online shopping site. It is offered with 0% APR on purchase for the first 6 months with that rate raising to 14.99% after the introductory period. With purchases like travel, department stores, gas and pet stores, this card give a 5% cashback Bonus.

After getting a credit card

admin — Thu, 13 Aug 2009 21:11:48 +0000

Now that you have looked through all the best credit card deals and gotten yourself a credit card don’t think all the struggle is over. You need to sit and carefully think of what you may be able to do and what is the situation you’d hate to see yourself in be. In this case, many times people forget that once a credit card comes into one’s hand, even more caution is required. Expenditure should not become an everyday thing just because you have got a plastic card in your hand that you think you will be able to pay off later. The answer to all of these problems lies within your own hands. All you need to do is to be careful right from the beginning. Here are a couple of steps that will help you in the care for your credit card and your expenses.

1.Â Â Â Â Â Â Â Check your monthly statement of the credit card diligently. You will have to make sure that there are no additional expenses on the statement. If you do spot some, call up the company immediately to find out what is it all about.

2.Â Â Â Â Â Â Â Make your payments on time. Choosing to delay your payment will cause nothing but havoc to your finances as the interest will keep increasing at an alarming rate and in the end you will be left helpless.