"A comfortable old age is the reward of a well-spent youth. Instead of its bringing sad and melancholy prospects of decay, it would give us hopes of eternal youth in a better world."
Accepting Credit Cards - Positives vs. Negatives Today there are hundreds of thousands of small & medium size businesses in this country that take orders via credit cards. In addition, every day in this country, there are hundreds of companies entering the world of e-commerce. They come from many ... Compare credit cards after reading this Capital One and Chase are two big-time credit lenders. These companies offer a multitude of different cards, and in this article we will compare credit cards between the two companies and see where their rates vary. Since most all credit cards are ... Dangers Of Credit Cards And Unsecured Loans Unsecured loans and credit card borrowing can be expensive. Credit card interest rates are steep. Many cards offer low introductory rates for the first six months, but raise the rate thereafter. Even many of the so-called low interest credit cards charge ...
Instant Credit Cards Can Be Expensive
One day, while you are shopping at your favorite department store, the sales clerk says to you, "If you apply for our credit card, you can save ten percent on your purchase." You think about it and decide, "Why not?" You provide some information to the clerk and a minute or two later, your credit card application is approved, your discount is applied, and you're on your way home.
Was this a smart thing to do? There are several reasons why it may not have been a good choice:
The card will probably carry a higher interest rate than the major credit card you had planned to use. Do you really need a credit card with a 20% interest rate?
The card may not include a grace period for the accrual of interest charges. You may find that although you saved 10%, you started paying 20% interest the minute you walked out the door!
The quick credit check that the store made to see if you qualify for credit put a small dent in your credit score, as will any credit inquiry. In and of itself, that's not a big deal, but a number of inquiries in a short period of time can affect your score significantly, and not for the better. The credit bureaus do not look favorably on repeated inquiries; it makes the borrower look desperate.
While it is certainly convenient to carry credit cards, it is not wise to apply for one without giving it a bit of thought first. The ten percent you save at the time you apply may be a small consolation for the large sums of money you may pay later. You might have been better off just paying with cash or another credit card in the first place.
