A card that allows you to spent whatever you want when you want sounds too good to be true. Although you do have the ability to freely use a credit card as you please, their is a great deal of responsibility that needs to be taken to prevent yourself from getting into tough money situations. This is a list of the advantages and disadvantages to using a credit card:
ADVANTAGES. . .
- Saves you time (not having to always find a way to access cash)
- Improve your own credit score when you pay off your bills on time
- Gain rewards (cash back on things like gas and groceries)
- It is convenient when you are low on money
- Teaches you about being financially responsible
DISADVANTAGES. . .
- Can obtain unwanted debt if you are not keeping up with paying off your bills
- Abusing the card and making unnecessary purchases
- Forget to keep track of purchases and possibly be over charged
- Fees/monthly payments become more expensive if you are not paying it off on time
- Identity theft is possible!
It isn't impossible to be able to handle credit cards well. Some helpful ways to stay on top of a credit card would include keeping track of the purchases you make, pay off all your balances in full, and know the benefits you receive by your bank and use the "rewards" you get wisely. There are more tips and information on good credit card habits on Wise Bread. (http://www.wisebread.com/12-habits-of-highly-responsible-credit-card-users)