Amongst finance bloggers there is a fair amount of debate about whether credit cards should be part of your financial arsenal. On one hand, when used irresponsibly they are the gateway to reckless spending and high interest debt. On the other hand, if you pay off your balance in full each month, you get rewarded with cash back rebates or other rewards.
As explained in my post Thank You For Irresponsible Credit Card Usage, card issuers are able to provide rewards because it is more than made up for by the interest being charged on outstanding balances. It’s only free rewards if you have the use your credit card right.
Basically it all comes down to whether you have the willpower to only charge what you can afford to pay off each month. If you can’t control your spending, it may be best to steer clear of credit cards and adopt a cash only budget.
Personally I pay off my balance in full each month and earn cash back on all my card purchases. Plus by using my credit card I am entitled to extra buyer protection. Hey, works for me. It doesn’t work for everyone though.
For people who can control their spending, I present a comparison of the best credit card offers:
- Airline Credit Cards
- Balance Transfer Credit Cards
- Cash Back Credit Cards
- Gas Credit Cards
- Low Interest Credit Cards
- Reward Credit Cards
- Student Credit Cards
If you need help comparing the best credit card offers, feel free to contact me and I’ll be happy to help guide you in the right direction.
Disclaimer: The content above is not provided or commissioned by Discover Card or MBNA. Opinions expressed here are the author’s alone, not those of Discover Card or MBNA, and have not been reviewed, approved or otherwise endorsed by Discover Card or MBNA. This site may be compensated through Discover Card and MBNA Affiliate Programs.
Be sure to check the card issuer’s website for up to date card terms and conditions. While I make every effort to keep this information up to date, the credit card offer terms can change at any time. Current terms are available on the application page.