5 Myths About Credit Cards

There may be many people who suggest that you get a credit card, but before you do you should carefully decide whether or not you really need a credit card. The truth is that you can get by without a credit card. Although a credit card can be a useful tool, when used properly (paid in full every month), it can be a bigger liability than an asset. You may want to choose to close your credit cards if you have more than one. Here are five common misconceptions about needing a credit card.

1. I Need a Credit Card to Build Credit

You build credit by paying your bills on time. You can build enough credit to qualify for a home loan by paying your rent on time for several years. You destroy your credit when you do not pay your bills on time. The utility companies and other businesses can send you to a collection agency if you do not pay on time. You do not need a credit card to build your credit history. You may find it a little easier to do with a credit card, but you should be very careful as you try to do so.

2. I Need a Credit Card to Shop Online or Rent a Car

Since debit cards have been introduced, you no longer need a credit card to do these things. In fact, you can do everything with a debit card that you can with a credit card, except spend money that you do not have. You should not be doing that anyway. Debit cards can be used anywhere a credit card can. This completely debunks the statement that you need one to rent a car. While it may be convenient to have a credit that you use solely for renting cars or paying for hotel rooms, they are not necessary.

3. I Need a Credit Card for Emergencies

If you plan well, you should set up an emergency fund for emergencies. Your emergency fund should have at least $1000.00 in it, but you should try to have three to six months of expenses saved up. This much money should be able to handle any emergency that comes your way. If you are stranded on the road and need to be towed you can use your debit card to pay for the tow, and your emergency fund to cover those expenses.

4. I Need a Credit Card to Save Money on My Purchases

Many stores will offer discounts for having a store credit card. Stores do not offer cards to give you discounts; they offer cards because they realize that while most people intend to pay the card off every month, few actually do. They make more back on interest than they the discount they offer to you. The ten percent savings you get on the purchases, you will pay back plus more in interest on just the first month’s bill.

5. I Need a Credit Card to Earn Rewards

This is a dangerous game to play. If you are responsible and pay off your balance in full each month, you may consider having a rewards credit card. You should make sure that you have a credit card with no annual fee. Additionally it is important to remember that the credit card offers its rewards, because the company realizes that most people are not going to pay off their credit cards in full each month. This means that they make more money off the customers, then rewards they give out. There are debit cards available now, which offer rewards points. You may want to look into that option if your early want to use reward points.

Article taken from:  http://moneyfor20s.about.com/od/creditcards/tp/needacreditcard.htm

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June Pereira

Please allow me to introduce or reintroduce myself. I am June Pereira. I was born in Santa Cruz, Trinidad, West Indies and today I live in a beautiful home in a borough/county here in my country which is called Arima. My upbringing has done a lot for me especially with the values my parents, especially my mom, instilled in me from a very young age. In my country, our schooling system is made up of primary, secondary and tertiary/university, etc. Fortunately for me, I have been through primary, secondary and tertiary. Whilst I may not be a university graduate, I did do my medical transcription at our Medical Data Campus, here in Trinidad. My education also includes learning a “trade” which is one of making jewellery; yes, making precious jewellery. I did that for a while, for about 7 years, and then “branched off” into managing a jewellery shop in one of our finest and oldest shopping malls here at home. Whilst working in this capacity, I was very fortunate to meet some very interesting people from “around the world,” including the author of “The Making of The West Indies,” (a history book I used in secondary school) Professor Fitzroy Richard Augier from Jamaica. Somehow, I ended up studying medical transcription in 2005. Those 7 months of studying medical transcription were some of the most stressful times in my life. I was in my early 40s then and had just acquired my first home and exams were coming to me like “crazy.” But I managed to complete that course and was very successful in doing so. I then went on to work from home as a medical transcriptionist (still doing so to date) and soon began to think about working as an online marketer, affiliate marketer or anything online that afforded me the opportunity to work for myself. I started to become more and more curious about that and around 2009, I started to “investigate” and “check out” things online. The first multilevel marketing company I joined was Strong Future International. At that time, I had no idea what I was doing and I had to learn everything about safelist marketing, traffic exchanges, traffic ad exchanges, etc. I then got involved with Global NPN through my upline James Caldwell and he and his upline, Edwin Watford, have assisted my quite tremendously over the last 2 years and they are still working online and helping me every day up to the time this of writing this. Luckily for me as well, I have always been able to depend on Geoff Stephen, the owner of Global NPN, who is someone I can always count on to answer questions when I ask. I still have a lot to learn and I am willing and ready to work with any persons who want to work with me. I plan to quit medical transcription in the near future and focus more on online marketing be it MLM, traffic exchanges, safelist marketing or a combination of some things. I would like for the person/s reading my blog to follow me on twitter. My username for Twitter is: junebuenavista. My Skype username (if you need it) is: sweetoman.

Latest posts by June Pereira (Posts)

• A Review of Viral PLR - February 25, 2013
• Consistency Plus Persistency Equals Product Sales - February 21, 2013
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• 5 Myths About Credit Cards - January 2, 2013