When it comes to buying just about anything, there's nothing more convenient than a credit card . You can pay for an item or a service in full, right on the spot. You don't need to go to the ATM or carry around a bunch of cash. But they do come with high interest rates and need to be managed carefully, because your credit card debt can mount rapidly. And you do need to pay it back.
In addition to convenience, credit cards offer a number of advantages like frequent flier mileage points and discounts with many merchants. Provided your credit is good, you can get a cash advance practically on demand. You can take advantage of lower, introductory rates that not only allow you to make purchases at a lower interest, you can move balances to lower-rate cards. And when you use it properly and pay your bills on time, opening a new credit card can actually help improve your credit score.
If all this sounds too good to be true, it can be if you don't properly manage your credit card use. The revolving credit available with credit cards makes it easy for you to spend beyond your means. If you have debts, using a credit card to pay them off can put you in an even deeper hole and put your credit at risk. Many low, introductory rates jump up over time, so it's imperative that you keep an eye on those to prevent your balance from getting out of hand. The interest rates associated with credit cards are often quite high.
Credit cards, when properly managed, can be a very useful tool. It's all up to you, and how well you handle your expenses.
If you're considering getting a credit card, here are a few useful articles and comparisons to help you decide. Please note that these articles are for your information only, and do not in any way constitute an endorsement from LoanMerica. We do think it's in your best interest to understand how credit cards work, and what the best one is for your particular situation.