Credit cards can really get you into trouble. But they can also be a huge help. You just need to know when to pull that puppy out.
For example, there's protection in plastic when you make big purchases, like a TV.
Because if it's damaged or defective... you can withhold payment while you and your credit card company work with the vendor to resolve the issue.
Which is why a credit card is virtually the only way you should ever shop online.
Another thing some credit cards offer that no debit card does? Extended Warranties. So if you've got a card that offers it, take advantage, especially on expensive stuff.
Some credit card statements also automatically categorize your purchases: that can help with budgeting.
When it’s categorized, it’s a frightening thing when they see … see $5K in restaurants, over the course of the last year!"
And maybe the smartest use of credit cards is to help build a good credit rating.
Because a good credit score can get you lower rates when you borrow. Help you get a better mortgage... and maybe a better deal on auto...even life insurance!
So when you boil it down, credit cards are like lots of things in life. Useful when used according to common sense. Dangerous when they're not. Want to find your best deal on plastic? There's a card comparison tool right here at moneytalksnews.com.
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