Credit Card: Urgent Money Help

A credit card is your source of a financial help, which you can use up to the credit card limit. It’s a plastic card with a magnetic strip, which gives you an opportunity to buy goods and pay off for services wherever you are.

Along with withdrawing the funds from your credit card, you are obliged to make monthly payments to supplement your balance. In the case, if you don’t make a required payment, you will have to pay off the interest fee, which depends on the terms of the specific bank.

There are two types of the credit cards – secured and unsecured. Secured credit cards belong to the card holder’s savings account. The credit limit varies and can be as high as you want. It depends on the amount of funds, which your credit card contains. It is a perfect variant for those, who want to rebuild their credit history.

The unsecured card is available for people with a good credit history. An unsecured card requires no collateral and acts as a pre-approved loan usually containing a higher interest rate.

The major advantage of any credit card is that it provides holders with a financial support, which they, actually, don’t obtain in a real life. 

Pros and Cons of Credit Cards

It’s difficult to imagine an average American without a credit card. Still, when applying for your first card, it’s important to know all the pros and cons.

Pros of Credit Cards

  • You can use them almost everywhere.
  • You can use credit cards to make purchases via phone and the Internet.
  • They are good when you need money in an emergency (healthcare expenses).
  • Most of the credit cards offer rewards and points for purchasing particular items/goods in particular places.
  • They allow paying off for the item in installments during a particular period.
  • You can improve your credit score with the help of credit cards.
  • Every cardholder can withhold payments.

Cons of Credit Cards

  • People, who have credit cards, tend to spend more than they earn. It’s very harmful to their credit and budget.
  • Some people tend to turn over their balances for several months.
  • Most of the companies charge high fees for late payments and other terms violations.
  • Irresponsible attitude to credit card use can lead to problems with credit.
  • Credit cards frauds are commonplace in the nowadays world (though it’s fair to say that you can get a credit card with a chip today).

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