Credit card companies offer stuff for those with good credit. Things like air miles, cash back, points for getting free stuff. They will wave the first year's fee to get you on their program.
You got to play the game right, though. If you carry a balance, you can loose your shirt. A tiny carry over charge will net you near 20% interest. If a person goes on a spending spree, they might never catch up. But, if a person gets their finances in order, using credit and paying it off each month, its a better gig than using cash. Every card offers different benifits, like buyers insurance, and rental car insurance, so its worth reading offers carefully. I never pay a yearly fee.
One thing experts say, never use checks. No protection using checks, no bonus points, no contesting charges, no insurance against theft. Bottom line, checks are has been, ancient instruments on par with the post office.
Not all of us do online stuff. So maybe none of this applies to you. I'm making my resources work for me. God knows in this economy a person has to make the most of every available resourse.
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It's a mix these days. I hate buying online, but it seems that its easier to find certain things this way. You don't have to fight crowds and the only traffic is on the internet and how fast it's working. The big thing of course, as you mentioned, is paying the credit card off each month.
ReplyDeleteYou can't live without a credit card now. I do buy a lot of stuff on line, and I need one when I travel.
ReplyDeletePersonally, I love the "insurance" a credit card provides. I pay it off every month, and use it pretty much for everything. If you get bad service, wrong merchandice, or need to rent a car, they have your back. So true, Matt, it is important to pay it off. I could see using it for medical emergencies as well sence I don't currently carry health insurance.
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