Here’s the most important thing you need to know about credit card usage: you’re essentially spending “borrowed” money from the bank.
That being said, if you do not have the capacity or enough responsibility to pay for your credit card bills on time, it’s best you keep your credit card spending low or set realistic spending limits on your card.
However, there are definitely advantages to owning a credit card. One such advantage is the rewards program. Certain credit cards can help you earn airline miles and other rewards such as dining vouchers.
Another advantage of owning a credit card is that they provide “insurance” in a way for big ticket items. Say you’re shopping online and your item gets lost in the mail, certain credit card companies such as American Express, hold money for up to 90 days, allowing you to get a reimbursement. You’ll also get to keep an electronic record of your spending.
Credit cards are also a great way to build rapport and acquire a good credit score with the bank you’re attached to. Once you’ve managed to establish a good rapport with them, the customer service and bank will better be able to help you in the future.
Essentially, credit cards are great for big ticket items that you need to purchase anyway. But, always make it a point to pony up when your bill arrives.