I'd like to erase my ignorance surrounding the issue of credit cards. I'm sure there are people here who have had both positive and negative experiences with them.
Here's a basic list of "what I've heard" about them.
- Credit cards are like the black plague and should be avoided no matter what
- Credit cards should never be treated like Extra Cash -- It is a high interest loan in disguise.
- Having lots of credit cards in good standing improves your credit rating.
- One should only use a credit card if they plan to pay the balance before the interest kicks in.
I personally have quite a few credit cards in my wallet, but I simply never use them. The credit card issued through my bank recently doubled my credit limit, even though I've charged less than 100 dollars to it all the time I've had it.
So what is the real deal behind credit cards? The only benefit I can perceive to having them is it's a quick way to build (or more likey ruin!) one's credit history.