Credit cards have no foreign body again. Probably almost everyone has a credit card, with a variety of reasons they have. If we use them wisely, of course it will be very good and helpful in an emergency or would benefit if many discount shopping deals when we needed it. However, the credit card will be bad if we are wrong usage of up causing a lot of debt and the private economy so chaotic. Below is taken from a website that explains the good and bad credit cards.
The Good: When a credit card is used properly and responsibly, it may have many advantages for the cardholder. Some advantages to using a credit card may include:
- Credit cards are very useful for emergencies
- Credit cards are often required to hold a reservation
- Credit cards offer protection against fraud above and beyond other payment tools (like debit cards, especially when shopping on the Internet)
- Many credit cards offer great bonuses, such as cash rebates and frequent flyer miles (you automatically get these bonuses for just using the card!)
- And perhaps most importantly… if credit cards are used responsibly they can help you establish a positive credit history
The Bad: If a credit card is used irresponsibly, it may have many disadvantages and cause the cardholder financial distress. Perhaps the most devastating result of using a credit card irresponsibly is the effect it may have on your credit history. If you do not use credit cards properly, you can develop a negative credit history and, in turn, lower your credit score. In the long run, a negative credit history can prevent you from qualifying for loans later in life including a mortgage to buy a home or a loan to buy a car. In addition, people with low credit scores have difficulty renting apartments, pay higher interest rates, pay higher insurance rates, and have difficulty obtaining a job.
Don’t let “the bad” scare you away from using credit cards. You want to benefit from the advantages credit cards offer, right? It is quite easy to use a credit card responsibly. The tables below outline both positive and negative credit card practices:
|To use a credit card POSITIVELY:|
|Pay your credit card balance in full every month|
|Pay your credit card bills on time|
|Apply for only credit cards that are needed|
|Keep track of all your credit card charges by keeping receipts|
|Check your monthly credit card statement for errors|
|AVOID the following when using credit cards:|
|Making late credit card payments|
|Paying only the minimum payment|
|Exceeding your card’s credit limit|
|Charging items that you can’t pay off immediately|
|Owning too many credit cards|
Avoid the bad and even worse… the ugly by following the guidelines above to use a credit card responsibly. Take advantage of the many benefits credit cards have to offer!
source : https://consumerjungle.org/jungle-talk/good-bad-ugly-credit-cards