Search This Blog

Friday, July 16, 2010

Do I Really Need Credit Cards?

Most peoples first reaction to a financial hardship is to cut up and cancel their credit cards, having the ultimate goal of paying cash for everything.  Although this extreme way of thinking and doing may work for some, for most of us this just won't cut it.

A lot of people wonders, "I have a VISA debit card, why do I need a credit card too?"  Actually, credit and debit cards are two totally different payment options.  There are many benefits a credit card offers that a debit card does not.  Some of these are: 

  1. Bank cards report to your credit report and if handled properly increase your credit scores.
  2. Convenience.  It is virtually impossible to rent a car, book a hotel room, or purchase airline tickets without one.
  3. Liability.  Credit cards offer consumers protection under the Fair Credit Reporting Act (FCRA) for purchases over $50.00  Most debit cards, either pre-paid or tied to a checking account, and business credit cards do not.
  4. Fraud Protection.  Purchasing scams, especially on the internet, are ram-pet.  Using a credit card for telephone and online purchases reduces risk to your cash flow.
  5. Purchase Protection.  Some credit cards offer card holders Purchase Protection.  This added benefit guarantees the items you purchase from theft, accidental breakage, etc...Be sure to ask your card issuer about this valuable option.

No comments:

Post a Comment

Related Posts with Thumbnails

Popular Posts

FTC Required Disclosure

The Federal Trade Commission requires that I disclose any relationship I may have between a product manufacturer or service provider when I write about a product or service.

My intention for this blog is to provide consumers with the knowledge to improve their current personal credit situation. It is the readers responsibility to do additional research and to make responsible decisions based on their own personal financial situations.

My promise to my readers is as follows:

  • I am never paid to do a review of a product or service. I do not accept money to review credit cards, credit repair companies etc... When reviewing a product or service, I invest my own time and money to review and test credit products and credit services listed on this site.
  • No advertiser will ever influence the content, topics or posts made in this blog. Just because there is an advertisement for a particular product or service on this site, it does not necessarily mean it has been endorsed by the author of this blog.
  • If I create a link to a product or service on this site, sometimes I may get paid a commission if you purchase the advertised product or service. These links are included after posts are written, and posts are never composed for the purpose of including advertising.

I feel the rules and practices listed above are just good business in today’s digital world. It is important for you the reader to understand the relationship between the person reviewing a product and the manufacturer or service provider.

If you don’t see a disclosure policy on a blog, that reviewer may be violating the law or at the very least the Code of Ethics.