Credit Newsletter
By Ousmane F.
What Is Credit
What is a credit card?
What determines if someone gets credit and how much they get?
Advantages And Disadvantages Of Credit Cards
Advantage: Convenience--Credit cards can save you time and trouble--no searching for an ATM or keeping cash on-hand.
Disadvantage: Overuse--Revolving credit makes it easy to spend beyond your means.
Advantage: Record keeping--Credit card statements can help you track your expenses. Some cards even provide year-end summaries that really help out at tax time.
Disadvantage: Paperwork--You'll need to save your receipts and check them against your statement each month. This is a good way to ensure that you haven't been overcharged.
Advantage: Low-cost loans--You can use revolving credit to save today (e.g., at a one-day sale), when available cash is a week away.
Disadvantage: High-cost fees--Your purchase will suddenly become much more expensive if you carry a balance or miss a payment.
Advantage: Instant cash--Cash advances are quick and convenient, putting cash in your hand when you need it.
Disadvantage: Unexpected fees--Typically, you'll pay between 2 and 4 percent just to get the cash advance; also cash advances usually carry high interest rates.
Where can you use credit cards?
- Gas
- Groceries
- Other Services
Tips To Use Credit Cards Wisely
- Pay the full balance each month
- Don’t spend more than 30% of your limit
- Set up auto-pay to avoid late fees
- Only sign up for one card
- Pick a card with rewards