CreditFYI Blog » purpose of credit cards http://credit-blog.creditfyi.com Thu, 25 Mar 2010 19:53:13 +0000 http://wordpress.org/?v=2.9.2 en hourly 1 The Purpose of Credit Cards http://credit-blog.creditfyi.com/credit-tips/the-purpose-of-credit-cards.html http://credit-blog.creditfyi.com/credit-tips/the-purpose-of-credit-cards.html#comments Wed, 26 Nov 2008 15:16:06 +0000 Debbie Dragon http://credit-blog.creditfyi.com/?p=231 Credit cards have become a way for people to get what they want instantly, when they don’t have the cash available to buy it. Credit cards weren’t exactly designed with the intent of giving people everything they wanted regardless of their ability to afford it or not, even though that’s what many people often use their credit cards for.
There could be multiple reasons for having and using credit cards, including:
  • Having the ability to reserve hotel rooms, travel accommodations, or restaurants by phone or Internet
  • Having the ability to make a purchase by phone or Internet to take advantage of special online deals or to avoid having to run out to the store unnecessarily
  • To benefit from rewards programs for frequent travelers, get cash back on purchases, or receive merchandise in exchange for responsible credit card use
  • To pay for unexpected, necessary expenses that would drain our financial resources over a few months, rather than having to borrow from a friend or take out a loan

When a credit card is used responsibly, the cardholder only charges what he or she can afford to pay off in the same month the transactions occur (with the exception of those occasional, necessary larger purchases that you pay off in a few months).

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