Keeping a running balance on a credit card from month to month is one of the most expensive types of debt you can have. However with some care a credit card can be a wonderful way to help manage your finances. The trick is to treat your credit card like you would a checking account so you aren’t spending money unless you have it in the bank.
Fortunately with a tool like Microsoft Money or Quicken, most credit cards will let you automatically download your charges as the clear the bank. This means you can keep a running total to track your expenses and to compare it with the money you have available to pay off the balance.
Another advantage of using a credit card is in dealing with vendors who don’t want to refund your money. I have had several situations where I was incorrectly charged for an item or service and my attempts to rectify the situation were unsuccessful. For example eBay once charged me incorrectly for a posting that was going to cost me an extra $200 beyond what I actually owed. I tried to resolve it with eBay for about a month without getting anywhere. I then called my credit card company and explained the situation. They sent me a form to fill out and I returned it along with my documentation regarding the situation. What I had been unable to accomplish in hours on the phone and writing emails to eBay, my credit card company took care of for me with only about 15 minutes of effort on my part.
Reward points are another advantage of credit cards. Some offer frequent flyer miles. Others offer cash or merchandise rewards. Over time these incentives can add up. I’ve gotten a vaccuum cleaner, digital camera, movie projector, books, iPod and several other items through credit card rewards over the past 5 years.
The danger of using a credit card is spending more than you can pay off at the end of the month. However if you track your expenses just like you would with a checking account, you can get the benefits of a credit card without the dangers.
People Found This When Searching For:
- good things about credit cards
- positive things about credit cards
- good and bad things about credit cards
- good things about having a credit card
- good things about a credit card
- good things about credit card
- positives about credit cards
- good thing about credit cards
- good things about credit
- what are the good things about credit cards
- the good things about credit cards
- Good points about credit cards
- good facts about credit cards
- what are good things about credit cards
- the good thing about credit cards
- what are some good things about credit cards
- positive facts about credit cards
- positive aspects of having a credit card
- good things credit cards
- what are the good things about credit card
- what are 10 good things about having a credit card
- the good things about credit card
- good thing about credit card
- good thing about credit
- what are some good things about having a credit card
Comments on this entry are closed.