No. of Recommendations: 0
What is the purpose of using a credit card if they are so dangerous, besides renting cars? In the afore-mentioned book it simply said “for convenience”, but using debit cards/check cards you seem to get the same convenience as a credit card?

The simple answer is that it allows you to buy something today and pay for it tomorrow. They are convenient in that you do not have to carry lots of cash around or write a lot of checks, the former being dangerous and the latter potentially being costly depending on your checking account features.

I heard somewhere that you can build up your credit with credit cards, but that you have to have a balance in your account for an extended period of time that you pay on. With high interest rates I am not sure I like that option. Is this true? Is there any other “safer” way to build up credit?

It is true that a history of clean credit card use can build credit that will qualify you for the best rates when applying for a mortgage or auto loan. It is not true that you need to carry a balance on your card. While not paying finance charges may make the CC issuer cringe, it demonstrates responsible use of credit, which is what a lender wants to see.

If you want to understand your credit better, start with one of the free credit reports available. For an extra few bucks you can get your credit score and see just what a potential creditor sees in you.

Fuskie
Who does not know anything about the Fool CC...
Print the post  

Announcements

UGC Disclosure Notice Regarding Credit Card Posts
Community board discussions about credit cards are not provided or commissioned by banks who may have advertising relationships with The Motley Fool. Responses have not been reviewed, approved or otherwise endorsed by the bank advertiser. It is not the bank advertiser's responsibility to ensure all posts and/or questions are answered.
TMF Credit Center
The Motley Fool Credit Center arms you with real tools and simple messages, that will help you in every credit situation.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement