The Pros and Cons of Credit Cards


This is why credit cards are one of the poorest managed forms of credit, we just aren't taught enough before we bury ourselves in debt. College students are generally at a disadvantage, usually because there are almost no courses in school about money management. This leads to using credit cards on frivolous things, such as movies, pizza and clothes. There are ways to work your way out of this downward spiral, one of which is to pay down your credit cards to a manageable balance.

There is no benefit in having several credit cards and not using them, this actually hurts your credit, as does using up the entire balance on your card. This means there has to be a balance in the spending and paying off of debt. You don't want to abandon either. A wise choice is to make sure you have as low an interest rate as possible on your cards. Many companies will lower your rate if you call and request it. Another benefit can be having cards that come with rewards, such as cash back. Using credit wisely will pay off in the future, and please, pass your lessons on to your kids.

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