Credit cards can serve a useful purpose in building a credit history and power to secure loans for major payments. However, if not used wisely they can be a source of grief due to debt collection calls and sleepless nights. As such, it is important to be aware of the risks and your own weaknesses. If you have a good measure of self control when it comes to spending, then a credit card can be a wise investment.
Credit cards come with many different options that are geared towards different life-styles, purchase habits, and individual experience. Many banks and credit unions partner with local businesses and services providers to offer cardholders rewards in the forms of discounts or cash-back. For example, if you travel a lot then you may opt for one of the many travel credit cards that offer bonuses such as free frequent flyer points, mileage points, or hotel points which you can then redeem for free airline tickets, gas, or hotel stay.
If you run a business, there are business credit cards that will allow you to build a business credit history to secure loans for important business purchases while keeping your personal credit risk-free. Such business cards cards may also allow you to accumulate points on purchases which you can then use for discounts at your local suppliers.
Students can also start building their credit history by applying for a student credit card. While they receive a low credit line with high interest rate, student credit cards, when paid in full each month, allow students to reach financial independence and be able to much easier get loans on major life purchases such as a home or car.
There is no question that today’s society places a lot of importance on credit cards by rewarding those that are able to pay their credit debt on time. However, those that cannot do so and max out or go over limit on their cards will find themselves in a hole seemingly too deep to crawl out of. The penalties and high interest rates on those with poor or bad credit hold such individuals down in a life choke hold, leading to endless calls from creditors, sleepless nights, family problems, and more. This website is design to help you avoid such pitfalls and, if you find yourself in a similar situation, how to be able to get out.