Google has stated “The best way to describe a credit card is in its non-physical form: a credit card represents a payment mechanism which facilitates both consumer and commercial business transactions, including purchases and cash advances. A credit card generally operates as a substitute for cash or a check and most often provides an unsecured revolving line of credit and there are many other benefits of owning a credit card.”
People might ask what’s the benefit of owning a credit card and Ms. Buehler (a teacher and a mom) explains some of the benefits which come with credit cards.
“Some of those benefits include being able to earn cash back on purchases, miles on traveling, and if you pay the debt at the end of every month you don’t have to pay interest on your purchase,” Ms. Buehler said.
“A credit card is an account that lets you borrow money to pay for everyday purchases such as gas and groceries. It can also be a great resource for purchasing big-ticket items such as TVs, travel packages, and jewelry because the funds for these items aren’t always immediately at your disposal,” Discover.com stated.
Some pros and cons of credit cards is that they “offer convenience, consumer protections and in some cases rewards or special financing. But they may also tempt you to overspend, charge variable interest rates that are typically higher than you’d pay with a loan, and often have late fees or penalty interest rates,” according to Experian
Experian has gone on to say ,“The ease and convenience of using a credit card is precisely why it’s so easy and perhaps tempting to overspend. Unlike a wallet that grows lighter as you spend, a credit card with a big limit may allow you to keep right on spending until you hit your credit limit—and that can lead you into a cycle of making only minimum payments as your debt grows. Maintaining high balances on your credit cards can also be serious damage to your credit scores.”
A good credit card if not the best to start with is: Best Entry-Level Travel Card. According to Google it’s a good pick because “with a $95 annual fee, it ranks as one of the best credit cards with annual fees under $100 and one of the top travel rewards cards for beginners.”
Mrs. Merren, a teacher at the high school, states, “when you first get a credit card I suggest you be careful and always pay your bills.”
