Here's an "educated" (don't ask) way to look at credit cards or creditors in general. 1st....APR is one thing. It is not the same as "rate". Credit cards work off "average daily balance". Applying your payment to the lowest rate 1st. This makes your balance on the higher rate continue accruing % while you payoff the lower % = more debt! Don't forget that if you mail a payment and it is recieved after the due date = $30+ late fee! Always pay these creditors via the creditor's website if available. Eliminate the possible delay in the mail. Also, credit scores are affected by % of revolving high credit used. Example.....1,000 credit limit, 750 balance owed = ok credit score affect. If over 80% of high credit limit used (balance owed) credit score negativly affected. Bottom line.....use credit cards for amounts able to be liquidated within the promotional period only. Credit cards on the other hand are better protection then debit cards for idenity theft. If someone steals your credit card info, then they have stolen the credit card company's money. If they steal your debit card info, they have stolen your cash!!!!! Easier to fight credit card theft than bank account theft. Plastic is dangerous unless your budget allows you to manage your debt in a timely manner. Not the case for the general public. Gas prices and general cost of living is making it even harder. Case in point.......next time you are at the gas pump, look around. How many folks are paying at the pump with plastic vs. how many folks are paying cash? How long can average people pay for normal cost of life with plastic? Just a thought and not fact.
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