It’s the giving season. That time of year when the Christmas lists come out. Along with the Christmas lists comes the credit cards. Let’s review what we know about credit cards.
Credit cards really have three sides the good, the bad, and the ugly.
The GOOD
There are times when you will need a credit card.
They are good to have an emergency call
They are useful when you are traveling.
If you have a credit card you can carry less cash.
If your card is stolen or someone has obtained your number, credit card companies can reverse the charge usually with no cost to you.
In order to rent a car, book a reservation, or buy a plane ticket you will need a credit card.
Car rental companies, lodging, and airlines do not accept cash.
Some retailers only take credit cards.
Which leads us to the bad.
The BAD
It’s’ easy to run up a large credit card balance, sometimes unconsciously.
It’s tempting to buy more and pay more for an item you’re using a credit card.
Knowing that you only have to pay a small fraction of the balance becomes an enticement to spend more.
By using a credit card, you pay more for your purchase.
The UGLY
The more credit cards you have the easier it is to get another and another and another.
WARNING
There is a new credit card out there for teenagers. Make sure that your teenager understands the Basics of Money and the Pitfalls of Credit Cards before you become responsible for their debts.