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Credit Cards

 | Jul 15,2007


Credit cards are everywhere. If you've gone to college, then application offers have undoubtedly bombarded you on campus. Whether you have or haven't gone to college, once you turn 18, those companies have a way of finding you via mail, don't they? This is a good thing and a bad thing. Credit cards can be used to help you establish credit and make large purchases in a more safe and efficient manner, yet if used improperly they may actually harm your credit.

The Good Of Credit Cards

Credit cards will help you establish credit and steadily increase your credit score as you continue to pay off your balance. It is true that you can build an amount of credit using your card and by making monthly payments. However, when using credit cards in this fashion, it is imperative to make payments on time and always to pay more than the minimum monthly payment. A high percentage rate on your card will equate to paying much more for items than the price tag indicated. Ultimately, it is best to use an amount that you can immediately pay off.

The Bad Of Credit Cards

Three words explain the bad of credit cards: credit card debt. It has put many in what my mom likes to call the "poor house," while others have experienced the last financial resort of bankruptcy. Credit cards can lead the irresponsible spender down a path of financial regret, while racking up belongings that they have no use for and bought impulsively. Owning credit is a true responsibility. If you are going to use credit cards as purchasing power, you must do so responsibly.

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