The first thing I always say to people when they ask why they should get a loan is “just be aware.” While there is no way you’re going to get rich doing something you don’t know or that you haven’t researched, I find it comforting to say that it’s important to “just be aware”.
This is where things get weird. Theres literally hundreds of loan options out there. One of the biggest differences between a traditional loan and a line of credit is that you know upfront what you are getting into. You can plan on paying it off in 10 years, or 25, or even 60 years. But if you just blindly put money in a savings account and then forget about it, you are putting yourself and your family at risk. Not so for a credit card.
So here’s the deal. When you go to a credit card company and you talk to someone who explains the concept of a credit card, then they tell you that it’s really a way to buy stuff that you want without actually having to pay for it. And that is exactly what a credit card is. A credit card is the purchase of an item that you want without having to pay for it.
Credit card companies are not only the companies that buy your stuff. They also have a huge amount of control over how you use the money you put into them. The idea that you can get a credit card without actually paying for it is called a “free credit card.” So when you purchase something with a credit card, the credit card company essentially puts up the money for the item. You don’t have to pay for it in any way.
The idea of a credit card is that you get a pass on it, but you pay a fee for it. Not only do you get the pass, but you get a second pass. That way you get a better pass if you keep paying the fee.
You can pay with a credit card without paying to the credit card company. In fact, since you don’t actually have to pay anything, the credit card company actually gets a better deal. The credit card company charges you a higher interest rate, but the fee is only based on the value of the card. So you pay less overall, but in a way that still nets you enough money to live comfortably because you get to use that money for stuff you want.
The idea is that your card is your primary method of payment for everything you want to do. So you use it to pay for things you want to do, like buying new video games, or paying your credit card bills. If you only pay in advance, the credit card company might try to charge you an extra fee because its fees are based on the value of the card.
Yeah, in theory, that’s great. But on the other hand, imagine if everyone did that. It would probably be bad for society. Sure, it’s not like we’re the only ones who like to buy things on credit cards. But even if we were, we would be the ones who would be most adversely affected by it.
But if there were no credit card fees, no fees were used on the card itself, and it was done by someone else, would that make it better for society? No, of course not. It would mean that the system was broken.
So, now that the whole credit card thing is out of the way, let’s look at how the credit cards actually work. There are two major types of credit cards. The first is a debit card. This is a card that is used to pay for things. For instance, you could buy a meal using your debit card to pay for it. You would then be able to use the card to make purchases at stores or restaurants.