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What is a Credit Card?

Credit card… a word thrown around the world, some say it’s the best thing in the world, some hate it and speak against it like no tomorrow. So, what is a credit card?

A credit card as defined by the dictionary as:

“A credit card is a payment card issued to users to enable the cardholder to pay a merchant for goods and services based on the cardholder’s accrued debt.

File:Credit-cards.jpg - Wikimedia Commons

So, to sum up it is a piece of plastic that can be used to be products/goods up to the max price set-up by the credit company in which you have to pay off later in full or piece at a time with high interest.

Let’s list some pros and cons of credit cards:


  • Can help you build credit (if used responsibly) (This can help get loans for a home, vehicle, or any loan for what you want!)
  • Possiblity to earn lots of rewards
  • Protection against unauthorized charges
  • Enabes you to leave cash at home or in a safe place
  • Helps keep track of spending
Visa Credit Card Security & Fraud Protection | Visa

Now, some of the cons:

  • Can lead to debt by spending more then what you have
  • Paying high amounts of intrest if not payed in full everymonth
  • Spending too much or missing a payment can effect your credit score negatively
  • Some credit card companies fine print can get confusing
(Gathered from Credit Karma)

So, if you use a credit card responsibly meaning, you do not overspend on your budget… This can be an awesome tool used for budgeting, acquiring loans, and overall smarter financing.

Best Cash Back Credit Cards of January 2022 |

But, if you do not use responsible meaning, you spend more than your budget (spend more than you have) this can really cause a negative impact in your overall financial life spending more than 29% more than what you initially spent if you miss one payment. This can also lead to a harder chance of acquiring loans.

There is also the fun side of credit cards, the rewards! Lot’s of credit cards offer

sign up bonuses up to $750 dollars, 5% cashback on so many purchases (in which you can get that cashback or use for whatever that credit card company offers!), you can get credit for hotels and driving services, get many promotional offers on many known brands. Overall they have many great perks.

You can click this block to see 5 of the best credit cards for 2022! Thanks for stopping by, God bless!

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