Credit Card Guide Presents...

Chinese people invented many helpful things such as gunpowder, paper money, chopsticks and umbrellas. Unfortunately as per the Chinese, they did not devise the idea of using plastic in the place of money. We can thank early American capitalists for that idea.

From the time John Biggins, the inventor of a first bank issued card, had his first eureka moment in 1946, credit cards have evolved to become one of the most versatile ways of paying, and this is why.

Most major stores today will take your credit cards, so you don't have to haul large amounts of unsecured and unclean currency with you. The only exception is the occasional small store, which only accepts cash. Also, by paying on your credit card in a timely fashion, you build a positive credit history.

In some countries such as UK, if you buy goods using a credit card and the goods turn out to be faulty, they are usually insured for a period of time, say two months, and you can be indemnified even for total loss. Credit cards are safe, and even if gun-totting miscreants help themselves to your wallet, you can make hit back by simply calling the credit card company and canceling the stolen card. Another thing going for credit cards is that you can keep track of your transactions, and it's thus easy to keep track of your expenditure.

Do you think the phrase 'credit card works for you' applies to you, or is it the other way around? The answer would be dependant on the way people treat the credit cards, or 'old plastic' as they are sometimes called.

Credit cards offers often are presented in a deceptively good light. Many consumers end up in dire financial circumstances when they use these cards. Advertisments which almost make the use of a certain card seem like charity are often ruses used to cheat consumers out of their money.

This is not a campaign of hate, which is aimed at the credit cards.

Surely they have their benefits - in America if you want to rent a car, you got to have a (major) credit card.

However, think about this situation:

Often you generate an offer in the mail that sounds nice, maybe a new style TV or fridge. But the cost is $2000. But wait, you have a credit card that has a $5000 limit, and without thinking purchase the item. Usually, this is how your repayment schedule will work out. Most credit cards charge a minimum of the total balance, usually being two percent, of the total per month. If the interest rate is 18 percent and you only choose to repay that minimum amount of $40, then $30 of that will go towards your interest and a mere 10 percent towards the actual principle. Furthermore, it will take you 30 years to repay it and you will end up paying over $5000 in interest.

The illustration, although it makes credit card use sound a bit scary, simply shows that you should use your credit card wisely. And look at the fine print when filling out credit card apps.

Be that as it may, whatever the doomsday prophets say, plastic money is here to stay.

Find articles covering every topic related to credit cards at Credit-CardGuides.com, a virtual credit card clearinghouse chockful of helpful information on choosing the credit card offers that best meet your needs, as well as links to low APR credit card apps and the most popularunsecured credit card applications .