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Credit Cards as Financial Tools

credit cards as tools

Credit cards should be used as a money management tool

and an emergency source of funds when needed. Credit cards are useful as money management tools since they provide a record of what you have purchased and you don't have to carry large amounts of cash.

Credit Cards also have the benefit of paying rewards

which means you are getting a discount on your purchase of 1% to 2%. These rewards should always be used for paying down the balance to benefit from the discount.

Credit cards provide a way to have control over your purchase.

If the new TV doesn't work and the store won't make good, you can notify the credit card company that you are contesting the purchase. They will investigate and it you still have a problem you won't be libel for the payment.

Credit cards can be an emergency source of funds.

Life has a way of handing us unplanned expenses, and often a credit card is the best way to solve a one time cash shortage. For example, the transmission on the car needs work. Since the car is your way to get to work, you need the car fixed. You have a credit card that will pay for it and you will pay it off as soon as possible.

Credit cards can be a debt trap.

If you use your credit card to fund everyday expenses or go on buying splurges you can't afford, you are falling into a debt trap. Credit cards are a money management tool, not a lifestyle tool for things you can't afford. Use it wisely, pay off balances monthly, and you will reap the benefits.

Get several offers

from the best credit card companies. You can choose a card with a zero interest rate for balance transfers. Or you can choose a credit card with the best rewards points. You decide.

0% Interest Rates

Several lenders are offering credit cards with 0% interest rates for up to 18 months. This means you can transfer high interest credit card balances to these cards and pay off your debt much faster. Since the 0% rate also applies to purchases, you can make large purchases now and pay them off over 18 months without any interest being charged. Wow.

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