Thursday, July 9, 2009

Good and Bad Credit Card Use

Credit Cards are Good...
For identification (required for train/air tickets, movie tickets)
As a safer substitute for cash.
For automatic record keeping.
To consolidate many purchases into one payment.
To save money when you can take advantage of a good sale or offer.
For placing orders easily by mail or phone.
When you have leverage against the merchant when a problem arises. Your dispute/claim will get prompt attention when the merchant knows your payment can be delayed or disputed.

But Don't Use your Credit Card...
As a recurrent temptation to overspend
To purchase non-essential items.

As a result you may,
Increase impulsive spending.
Make payments late or only partially.
Face bankruptcy.

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