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Credit Introduction By: Ali Giffen (Good Uses (Paying big payments you…
Credit Introduction By: Ali Giffen
Bad Uses
Using it on food and beverage products
Paying for all your friends at a restaurant and then taking the cash because at the end of the month you will have spent the cash and won't have the funds in your account to pay your bill
Credit
To be able to buy something now and pay for it later
Good Uses
Paying big payments you cannot afford in the moment. For example, an electric bill. You need the electricity now and have time to get the money together later.
Use in an emergency
Consolidate your debt
Shop securely online
Advantages
Build up your credit score
Reduce the need to carry cash/if you don't have any you can still make purchases
Disadvantages
Having to pay additional interest.
If you don't make your payments on time, you'll damage your credit record
Losing money on late fees.
Factors to Consider
Interest rates
Reward programs: acquiring points, discounts etc.
Limit per month on the card