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Credit Cards Are Actually High-interest Loans

Credit cards are abused so much that banks now offer secured credit cards to help prevent credit problems

. With a secured credit card, also called a prepaid card, you "load" your card with a prepaid amount of money.

Credit cards are actually high-interest loans in disguise. Companies may lend you money, but they get it all back and a lot more of it by charging you fees. Credit cards are best to use if you want to borrow a small amount of money for a short time. They're ideal for people who have the means to pay the money off quickly, and who are good at budgeting.

Credit cards are a means of pretending you have extra cash, and you are more likely to spend much more than if you were handing over cash. Credit cards can be a good thing if you just have one credit card to help build credit. You can use that one credit card for emergencies. It also helps in fraud protection and a host of other benefits.

Credit cards are only good at the start but when you've reached your credit limit, for sure, you'll take a nasty road to paying it as well as the interest charge every month.

Balance transfer cards are ideal if you have a large balance on another card with a higher rate. These types of cards will not have any charges for making the balance transfer.

Balance transfer cards are great for the right (disciplined) person. If you are serious about getting rid of your debt AND have the means to wipe away your debt within a year then these cards are ideal. Online balance transfers with zero apr for first nine months are good and after that period it would be in your best interests to pay it completely off.

by: Karri Owens.
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