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- Convenience
- Buy now, pay back later
- Widely accepted
- Carry less cash - safe
- Rewards programs
- No need to show ID or give out personal info
- Monthly statement has record of purchases
- Can be an interest free loan if you pay in full when the bill arrives
- Fraud Protection
- Costly if you carry a balance
- Commits future income that may be needed for necessities
- Discourages comparison shopping
- Encourages impulse buying and/or overspending
- Items wear out sooner that the payments do
- Perks provide incentive to overspend
- Request a gas card (typically easier to get) – pay promptly and
- Pay all bills on time
- Pay off student loans
- Open a share draft account – do not bounce checks or get overdrawn
- Get a secured credit card if you can’t get a regular card
- Obtain a small loan from a credit union and pay back promptly.
- Payday loans (they can cost you around 300% interest!)
- Refund anticipation loans
- Rent-to-own
- Pawn shops
- Car title loans
- Debt consolidation
- Ask for a date that is easy to remember – such as payday
- Use auto bill pay services
- Pay online
- If you pay late but always pay on time – as for the late fee to be waived
| What You Pay If You Make Minimum Payments (Based on 18% interest; $20 payment or 2% of balance) |
| Amount Owed |
Pay-off Period |
Interest Costs |
Actual costs |
| $1,800 |
22 years |
$3,800 |
$5,600 |
| $3,900 |
35 years |
$10,100 |
$14,000 |
More Information on Credit Reports - Read More Here»
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Disadvantages of Credit
