Pros and Cons of Owning a Credit Card
Credit cards are both good and bad depending on whose hands they're in. If you are careful and good with managing money, then there are many benefits to using one. If you have trouble staying out of debt, then stay away!
The benefits on credit cards add up if you pay off your bill every month. Credit cards such as the one offered by Upromise, benefits college students by contributing a percentage of the purchase to their college fund, which over time adds up. Others, off rewards such as cash back or travel points.
The key is to pay off the bill every month and never over spend. It is proven that it is easier to over spend with a credit card compared to with cash. With cash, we see and feel our hard earned money leaving us. With plastic, one swipe or two or three is like a child's game.
The other good thing about credit cards is that if stolen, you can cancel them right away and not lose a cent. With paper money, you're out of luck.
When traveling, check your credit card's fees for foreign transactions. Sometimes, it's better to exchange paper currency and avoid the 3%+ charge. Even better are traveler's checks.
Now of days, with online banking you can keep track of your purchases better than before. And in certain cases, you can cancel charges. When money exchanges hands, it's gone for good.
Overall, it depends on one's lifestyle whether credit cards are beneficial. Just monitor your purchases to avoid debt, and use them with caution.