Credit Cards – better than friends in times of need?

If you want to understand the real advantage of having credit cards, an idea might be to compare it to your friends. What are the chances of getting a loan from your friends with no questions asked? Most likely they will want to know why you need to borrow some money and when they will be getting it back.

Even your closest friend is going to be curious to know the reasons why you want to borrow money. On the other hand, if you had a credit card, you could effectively use that piece of plastic and it won't answer back or ask you why!

Another advantage of the credit card is you know where you stand. You will feel no guilt about missing a repayment, and neither will the credit card feel bad about asking you for it. The terms and conditions are legally bound, and if you miss a payment, there will be charges. Sometimes it's better to have these charges than to be indebted to your friend.

Thirdly, you get complete flexibility in repayment. As long as you can afford to, you can stretch the repayments for as long as you want. There is no compulsion to repay your debts very quickly. If you are short of cash, you can stick to the minimum repayment and you can overcome your credit card debt problem as and when you get sufficient cash. Although it's not recommended to only pay the minimum payments each month, you'll end up paying far more than you initially borrowed and over many,many, many years!

Fourthly, you can use the credit card whenever you want and wherever you want. As long as you are shopping in a store that accepts credit cards, you can purchase any and everything within your credit limit. What is more, your credit limit is determined on the basis of your income and your past reputation. Hence, if you have good track record, you can easily secure a credit limit and interest rate that is manageable, getting one of these best credit card offers on the market.  

Finally, the credit card is the safest way to carry large amounts without any security fears. You and your friend will be taking huge risks by lending insecurely to each other.  

With a credit card, you can have the money in your credit card account without any difficulty or fear of misappropriation. As long as you retain the pin and as long as you protect the credit card number, you can be rest assured of enjoying the benefits of borrowing money.