While a credit card may have risks or downsides, these are vastly outweighed by its benefits.The primary purpose of a credit card is to provide you with credit.This means that you can buy something today, but not have to pay for it until later, thus borrowing money from the credit card issuer.
You only have to pay interest if you do not pay your bill in full by the due date.
In this case, you do have to pay interest, and often at a fairly high interest rate, although this may often be the cheapest and/or the only way for many people to borrow money.
Current interest rates, or APRs, on credit cards are anywhere from around 10% to over 20%, although they can be as low as 0% for promotional periods.
In addition to borrowing, there are many other reasons why having a credit card is valuable.
It is important to establish a credit history, since in many cases, having no credit can be as detrimental as having bad credit.
Even if you do not use your credit card often, it can be crucial in certain situations, such as emergencies, when making hotel or restaurant reservations, or when shopping online.
A credit card is more secure than a debit card, since you can dispute charges before paying them. There are many factors you should consider when choosing a credit card.
When considering a credit card offer, you should take into account the card's features, such as the APR, the length of the grace period, the credit limit, annual fees, cash advance fees, balance transfer fees, late fees, fees for having a balance above your credit limit, any other fees, and whether the card offers any rewards.
You should also consider your own financial situation. How much are you likely to charge to credit each month?