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The picture shows some major benefits of credit card like Low interest rates, Acceptable at most places, easy to get etc.

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Credit cards can make it less demanding to purchase things. On the off chance that you don't prefer to convey a lot of money with you or if an organization doesn't acknowledge money buys, putting buys on a charge card can make purchasing things less demanding.

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Classes:
Introduction > Take the Test > Where Do You Get Your Money? > How To Handle Money > Budgeting and Saving > Conclusion

How To Handle Money > Checking Accounts > Saving Accounts > How to Open a Bank Account > Cash or Credit? > Advantages and Disadvantages of Credit > How to Open/Apply for an Account

Like most things, there are advantages and disadvantages to credit cards. Knowing some of these can help you decide if you do or do not want to use credit cards.

Advantages

Purchase Power and Ease of Purchase - Credit cards can make it easier to buy things. If you don't like to carry large amounts of cash with you or if a company doesn't accept cash purchases (for example most airlines, hotels, and car rental agencies), putting purchases on a credit card can make buying things easier.

Protection of Purchases - Credit cards may also offer you additional protection if something you have bought is lost, damaged, or stolen. Both your credit card statement (and the credit card company) can vouch for the fact that you have made a purchase if the original receipt is lost or stolen. In addition, some credit card companies offer insurance on large purchases.

Building a Credit Line - Having a good credit history is often important, not only when applying for credit cards, but also when applying for things such as loans, rental applications, or even some jobs. Having a credit card and using it wisely (making payments on time and in full each month) will help you build a good credit history.

Emergencies - Credit cards can also be useful in times of emergency. While you should avoid spending outside your budget (or money you don't have!), sometimes emergencies (such as your car breaking down or flood or fire) may lead to a large purchase (like the need for a rental car or a motel room for several nights.)

Credit Card Benefits - In addition to the benefits listed above, some credit cards offer additional benefits, such as discounts from particular stores or companies, bonuses such as free airline miles or travel discounts, and special insurances (like travel or life insurance.) While most of these benefits are meant to encourage you to charge more money on your credit card (remember, credit card companies start making their money when you can't afford to pay off your charges!) the benefits are real and can be helpful as long as you remember your spending limits.

Disadvantages

Blowing Your Budget -- The biggest disadvantage of credit cards is that they encourage people to spend money that they don't have. Most credit cards do not require you to pay off your balance each month, so even if you only have $100, you may be able to spend up to $500 or $1,000 on your credit card. While this may seem like 'free money' at the time, you will have to pay it off -- and the longer you wait, the more money you will owe since credit card companies charge you interest each month on the money you have borrowed.

High Interest Rates and Increased Debt -- Credit card companies charge you an enormous amount of interest on each balance that you don't pay off at the end of each month. This is how they make their money and this is how most people in the United States get into debt (and even bankruptcy.) Consider this: If you have a $100 in savings, most banks will give you at the most 2.0 to 2.5% interest on your money over the course of the year. This means you earn $2.00 - $2.50 a year on your $100 savings. Most credit cards charge you up to 10 times that amount of interest on balances. This means that if you have $100 balance that you don't pay off, you will be charged 20-25% interest on that $100. This means that you owe almost $30 interest (plus the original $100) at the end of the year. A good way to look at this is in comparison to what you would earn in interest from a bank or owe in interest to a bank loan: Savings accounts may pay you around 2% interest; if you have a loan from a bank you may pay them around 10% interest (5 times as much as you earn off your savings); if you owe money to a credit card company, you may pay them around 20% interest (10 times as much as you earn off your savings.)

Credit Card Fraud - Like cash, sometimes credit cards can be stolen. They may be physically stolen (if you lose your wallet) or someone may steal your credit card number (from a receipt, over the phone, or from a Web site) and use your card to rack up debts. The good news is that, unlike cash, if you realize your credit card or number has been stolen and you report it to your credit card company immediately, you will not be charged for any purchases that someone else has made. Even if you don't realize your credit card number has been stolen (sometimes you might not know until you receive your monthly statement), most credit card companies don't charge you or only charge a small fee, like $25 or $50, even if the thief has charged thousands of dollars to your card. There are several things you can do to prevent credit card fraud:

If you lose your card or wallet, report it to your credit card company immediately.

Don't loan your credit card to anyone and only give out your credit card information to trusted companies or Web sites.

Check your statement closely at the end of each month to make sure all charges are yours.

You can find out more about protecting your personal information by visiting our Personal Safety course.

Credit cards can make life easier and be a great tool, but if they aren't used wisely they can become a huge financial burden. If you do decide to use credit cards, remember these simple rules:

Keep track of all your purchases.

Don't spend outside your budget.

Pay off your balance on all of your credit cards at the end of each month.

Don't loan your credit or give out your credit card information to anyone but reliable companies.

Learn more about how to apply for credit cards in the next section.

Next: How to Open/Apply for an Account

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Classes: Introduction > Take the Test > Where Do You Get Your Money? > How To Handle Money > Budgeting and Saving > Conclusion How To Handle Money > Checking Accounts > Saving Accounts > How to Open a Bank Account > Cash or Credit?

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Sometimes choosing the right credit card can be very difficult as the annual balance transfer rate and interest rate.

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In the right hands and used correctly, a credit card can be a fairly invaluable financial tool. The added flexibility when it comes to budgeting and the ability to make purchases that would otherwise be nearly impossible acts as a great incentive for many.

However, if you're not careful, you could find yourself getting stung by high interest rates and other fees and you could end up worse off than you were before you took out the card.

Our quick guide will go over the main advantages and disadvantages associated with credit cards.

Advantages

Here we'll go over some of the main benefits you can enjoy if you take out the right credit card, from financial flexibility to rewards schemes allowing you to potentially fly around the world for next to nothing.

Flexibility

Given the timing of pay checks, making certain purchases at certain times of the month can be tricky. A credit card frees you up by allowing you to spend money you don't have and then pay it back over time in the future.

Low on money at the end of the month but need to do a big grocery shop? Not a problem if you've got a credit card.

So long as you can be sure you'll have enough money to pay off the balance, a credit card allows you to somewhat exceed your basic means and makes your financial life much more flexible than it would be otherwise.

Making Large Purchases

By the same token as the above, making large purchases like buying holidays or white goods is much easier when you have a credit card.

Given the expenses of daily life, it is often hard to constantly put enough money aside to be able to make expensive purchases using cash. A credit card allows you to do so and then to pay for what you buy retrospectively.

One of the best things about credit cards is that it is essentially up to you how much you want to pay back each month.

The less of your balance you pay off, the more you'll have to pay in the future due to interest but if you budget carefully, then you can afford to pay less one month and more the next, balancing out your overall payments.

Payment Protection

Beyond the flexibility offered, another reason why using a credit card to make large purchases is a good idea is thanks to the payment protection offered by Section 75 of the Consumer Credit Act.

What this means is that if you make a purchase that goes awry and the retailer in question refuses to refund you, then you can request a refund from your credit card issuer.

This can be particularly helpful if you're paying for flights and the airline goes bust before you are due to leave.

Section 75 applies to all credit card purchases valued between £100 and £30,000.

Rewards Schemes

There are various credit cards available that can offer you rewards like cash back on any purchases you make using them.

So long as you can afford to pay the slightly inflated APR that they tend to come with, and you can manage the monthly repayments, then by using a rewards based card you can spend as you usually would and accrue various benefits as you do so.

Some cards will offer cash back at a percentage of everything you spend. Some with offer you points that you can then redeem on international flights, either allowing you to purchase the flight ticket outright with them or to upgrade existing flights to first class.

Credit Rating

Having a decent credit rating is crucial if you want to take advantage of the best credit cards and loans on the market.

If you take out a credit card and use it responsibly, paying off as much of the balance as possible each month and never falling behind on payments, then your credit rating will steadily improve.

You can even take out a specialised credit building card with a low limit and a relatively high APR that is designed to help people with poor or limited credit ratings get themselves in a better position to use credit in the future.

Disadvantages

While credit cards can, as detailed above, be a very useful tool to have in your wallet, there are certain things you should look out for if you want to avoid being swamped by debt.

The APR, or annual percentage rate, is essentially the cost of spending money on your credit card, including basic interest rates as well as any other relevant fees.

Ideally, you want the lowest APR possible, but it is not always totally straightforward. Different types of card will come with different typical APR levels - rewards based cards and credit building cards are often more costly than some more basic credit cards for example.

Cash Advance Fees

One thing you should avoid doing at all costs is withdrawing cash from an ATM using your credit card. If you do so, you will rack up hefty cash advance charges and so unless it's absolutely necessary to use your credit card, you should always stick to using your debit card to get cash out.

Choosing the Right Credit Card

In order to make the most of your credit card, you should first have a think about exactly what you're going to need it for. There are several different types of card available and so it's crucial that you pick the right one.

Whichever card you're after, make sure you're shopping around online to get the best deals. Use our free credit card comparison service to see what kind of APR or other benefits you could enjoy.

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Advantages and Disadvantages of Credit Cards

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In the right hands and used correctly, a credit card can be a fairly invaluable financial tool. The added flexibility when it comes to budgeting and the ability to make purchases that would otherwise be nearly impossible acts as a great incentive for many.

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Credit card's fees invoice tend to range between 3 to 4 percent of invoice.

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Using a credit card is not easy. It should be used in a manner that it affects our credit record in a good way rather than making it bad.

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How to Use a Credit Card. Getting your first credit card is a major financial step. Used properly, credit cards offer a flexible way to cover unexpected expenses and build up a good financial reputation. However, used irresponsibly, credit...

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There are various banks in Canada that issue credit cards ranging from Mastercard, Visa. The interest rate and credit limits differ depending on the bank and the record of the individual.

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With bad credit score it is not possible to buy a house or own a car. So it is better to stay updated with the credit bills all the time.

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If we buy an item on credit card and if its price went down after the return period, then we can claim to the company for refund. Secondly, we can get extended warranty on an item we purchase. For example, if we have a warranty of 30 days on an item, we can extend it using our credit card. But each card has certain limits

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5 Hidden Credit Card Benefits | BeatTheBush

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The video is about the way of using credit card. It includes using credit card to earn points for travel, shopping, etc. It also teach us to pay minimum payment amount before the due date to avoid the fall in credit rating