Can somebody please explain the point of owning a credit card?

Question

I'm afraid I just don't get why people get credit cards. Can somebody please explain the advantages of owning a credit card and the disadvantages of just having a regular bank account?

Answer 1

theres is a ad/disvantage.

Is that, you can spend like 3 ,000 and only pay 100 ea month.

But theres a amount u HAVE to pay each month.

Its like oweing the bank but slowly paying it(which can go on 4ever)

Answer 2

The reason you would want to use a credit card over a regular bank account or debit card is to build credit.

You need credit in order to get any type of loan.(house, car, personal) The banks want to know if you would be able to pay it back.

I used a debit card up until I was 22. I should have been using a credit card instead. For the past 2 years I have only used credit cards, and almost never use cash. I try not to.

The advantages of plastic is you never have to carry cash on you. If you have a visa/mastercard its accepted all over the world in most places. Also with the right card you get rewarded for using it. On my cards I get lots of cash back.

There is no disadvantage of using a credit card if you are responsible with your charging. I use a credit card for every purchase. I pay off the balance in full each month, and earn cash back. In my 2 years of owning credit cards, I haven't paid one dime for a late fee, haven't paid anything for an outstanding balance, and have earned close to $500 back. Not to mention earning interest on my money while it sits in the bank. I don't think you can say the same about cash or a debit card.

Answer 3

All you can know about credit cards from this site. It gives you some reliable, safe and highly useful links.

http://www.tinyurl.pl/?RR8fpG4R

It will help you a lot as it helped me.

Answer 4

CREDIT CARDS ADVANTAGES

- widely accepted by merchants

- conveniant way to make purchases without having cash.

- if lost or stolen, you are usually protected from any unauthorized purchases so you don't loose your money

- gives you up to 30 days to pay off the debt without finance charges

BANK ACCOUNT DISADVANTAGES

- requires you to go to bank or find an ATM machine in order to withdraw money to make purchases

- requires you to become a security risk by carrying money to make all of your purchases

- if your cash is lost or stolen after you withdraw it, the bank will not replace it.

Answer 5

Credit cards are ment for emergencies.

But the fact that you could buy anything at anytime is what gets people in trouble an why credit cards can be very bad. An you have to pay interest to sometimes its alot depending on how long it takes to pay. So getting a credit card make sure you KNOW you can pay it back other wise you will be ******...

Answer 6

good question,

the difference is that

first off owning an actual credit card helps build your credit score.

second, you can buy something with a credit card and not have to worry about actual paying the credit card bill for 12 months. Also, interest would not be added on top of what you owe if you got the credit card within the year.

third, great rewards that save you money on things like gas, travel, and more

there are many other reasons as well, but those are the reasons people most usually have.

if you want to see detailed reviews on any of the major credit cards and easily compare them to one another check out

http://www.cardlister.com/default.asp

Answer 7

Credit card can always help you in emergency and one of the biggest advantage of having a credit card is that you don't have to carry money all the time when you go for shopping . A lot of companies nowadays are coming up with the rewards program with the credit cards those too are benficial for the customers to use, but be aware which are the real ones and get the benefits accordingly. If you are using credit union credit card, you can earn cu rewards with the usage of the credit card. NMTW Community Credit Union is one of the best credit union in USA, offering some wonderful features. check out at http://www.nmtw.org/122/credit-cards.htm... for detail info.

Answer 8

you will need credit card only when doing transaction on the internet, for example buying books at amazon.com, etc....for  transactions in the real world, it makes more sense to pay with cash....

Answer 9

credit cards are meant to build credit. this is a tool to help establish future credibility when trying to make larger purchases for example, a car, a home, a boat.

although having a credit card is essential for building credit the downside would be that you have to pay interest on the money you owe.

having a bank account is essential also but you can only make purchases on the funds available. so if your looking to buy something out of your range you wont be able to.

the major disadvantage of a bank account as oppose to a credit card is....it does not build credit. you can have a lot of money but without credit it will be hard to get a loan in the future.