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Credit cards are like loans
By Mark Lambie
Credit cards! If you're like most people, you probably love them some
times and hate them other times. They can be a great way to manage your
finances and they can be a terrible bill to get every month.
But credit cards aren't all bad. If we could live our lives without them, we
would. But we can't. The world is simply not built that way anymore. More
and more often, companies require credit cards as the best way to receive
payment or security, rather than cash or checks.
But a credit card is just a loan. Few people realize it as such, but that's all it
is: Simply a loan that you can use if you want, but you don't always use. A
credit card is like a constant line of credit that is represented by the piece
of plastic you carry in your wallet or purse. It says to the shop owner that
someone has checked you out and deemed you worthy to receive a
certain amount of credit line in order purchase the product offered for sale.
Used wisely, a credit card is an excellent financial tool. The first advantage
a credit card offers is the ability to manage your finances. This means that
you can buy things you want or need and defer payment until you choose.
If you have a credit card that provides you with reward points or rebates or
discount opportunities, an advantage that credit card offers is to help you
leverage your current purchases by building up points or generating
discounts on the money you spend.
The third advantage a credit card can offer you is the additional layer of
purchase protection. Some credit cards come with an extra insurance
package so that purchases you make it any retailer are also covered by
the credit card.
The fourth advantage a credit card can offer you depends on the credit
card you get. Some credit cards offer travel insurance, car rental
insurance, and even concierge services for a small fee. Depending on
how busy your life is, or how often you travel or rent a car, having these
advantages built into your credit card may be a wise financial decision for
you.
A credit card is just an ongoing loan to you represented by a piece of
plastic. But used wisely, this loan can offer you much more than other
types of loans. Credit cards are not always bad. Consider whether you
should add a couple to your financial portfolio.
About the Author
Mark Lambie is the founder of Loan Source, a website for UK residents seeking secured loans. Visit
our website today for a free Secured Loans quote and find
out how much we can save you.
Article Source: http://www.simplysearch4it.com/article/17296.html
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