When people get older and have more responsibilities most get credit cards. Credit cards are good and bad, it really depends on how you use them.

The Good

The best reason to get a credit cards is to establish credit. When you are young and becoming an adult, (lets say 18) you do not have much credit to your name. It is harder to get loans for cars, homes, school, an much more. They will look at your credit report and don’t see if you are responsible or not.

Usually when you first apply they will grant you a small credit line (the amount you can spend up to), then gradually over time after showing you are responsible you are able to get a higher limit so you can spend more. Just make sure to make your montly payment, and hopefully the full amount. You should not spend more then you are able to pay.

Over time it will show on your credit report the time you have had the card and your balance. Keep this in good standing and companies/banks will more likely will loan you money believing you will pay it back. If you act irresponsible they will not and it will be harder for you to get loans. Or at a higher interest rate.

The Bad

Unfortantely a lot of people are not good with credit cards. They spend more then they can pay and fail to make the montly payments. This can make nightmares for a lot of people. They believe if they pay with their card that their bills will magically go away. But in reality you are just shifting your bills to somewhere else while paying a higher interest rate. The interest rates can be anywhere form 12.99% to 29.99% or higher. Almost making it impossible to pay the balance off in the short run.

If you fail to miss a payment of two the interest rate will go higher and it will report to your credit report. This will affect the loans that are offered to you, or that are not offered to you.

Please be responsible, a lot of people do get into trouble fast without realizing it. Use your card for emergencies or for when you can pay back right away. This will save you a lot of trouble in the future.

Is that McDonalds breakfast really worth it?

Instead try going to cashcrate and earn some extra money. At cashcrate you can earn money from doing surveys, playing games, filling out surveys and referring. With the money you earn from cashcrate you can put it in the bank account and build your savings for something that you really want.

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