Heres a quick riddle - whats plastic, has your name on it,and pays for your Cadillac and your European vacation? So what is this mysterious rectangular shape? The answer would be a credit card.
But you might be trying to solve another riddle of your own - do you really need that credit card?
Of course, the most salient advantage of using a credit card is being able to buy now and worry about theconsequences later. Avid shoppers can even get a number of incentives due to redeemable reward points, free air miles, cash back on purchases and more, all through a reward credit card.
Going on the Internet has never been the same due to the proliferation of online merchants, all of them more than happy to hawk their wares on the World Wide Web andaccept payments via credit card. The credit card company should cover you and you will not be held liable for fraudulent use of your credit card online. Read the fine print as this is where you would often find this pertinent information on your credit card agreement.
Your credit card would also take the cudgels for you if you need to use it overseas - no longer would you have to crunch numbers in your head and fret about the ever-changing figures of currency exchange. A lot of credit cards are also equipped with payment protection. A majordrawback of this would be that it will cost you extra every time that you use the card abroad, normally a flat rate of around 3% on the transaction cost will be added to your credit card balance.
Credit cards prove to be a boon when you think of emergency situations. So let us say you get into an accident for some reason or another. You are in a predicament - not enough dead presidents in that wallet of yours. So whats the plan, Stan? Plan to wait for theorgan music to pipe in as an angel descends from Heaven? Of course not, silly - they stopped making Ghostbusters movies two decades ago. You can always rely on yourcredit card and pay for those expenses. As a matter of fact, some of them come with accident insurance.
Yet another kind of credit card would be the affinity card - the name may sound fey (no, not Tina), but these cardsactually serve an honorable purpose as they allow you to donate to charities or similar organizations you are affiliated with. In other words, the more you use youraffinity card for purchasing, the more money your affiliate would receive.
People wrongly accuse credit cards of making spendthrifts out of them. However, pay no heed to these people - itsnot about the credit card but how you use it. As an aside, you may also want to consider that credit cards can also help people rebuild their credit if their credit history hasgone bad - credit builder products, which include, but arenot limited to unsecured cards, can do wonders in helping people start anew with their credit.