Credit Cards
The dangers of having a credit card:
Visa
I would choose to have the Discover card, as it offers the most benefits out of the three that I looked at. It has a relatively normal APR variable, but the true interest is the lowest of them. As well as that, it offers cashback and no APR for the first 14 months. As well as that, it has no annual fee. This means that I would be able to use my credit card with relative safety, as long as I use it responsibly.
Sources:
https://www.nerdwallet.com/credit-cards
http://blog.readyforzero.com/the-4-most-dangerous-things-about-credit-cards-and-how-to-protect-yourself/#.WShZa-srKM8
http://blog.credit.com/2015/03/5-credit-card-dangers-112161/
https://handsonbanking.org/adults/using-credit-advantage/credit/the-benefits-and-risks-of-credit/
- You can easily overspend your limit, as it is an effortless task to swipe the card.
- If you keep a high balance, you can suffer large interest payments.
- It's easy to build debt, and tough to break it down.
- They can come with fees and payments
- You can damage your credit score which can make loans tougher to get in the future.
Visa
- APR: 10.74 to 17.74%
- True Interest: 17.74%
- Annual Fee: No
- Cashback: No
- 0% APR for: N/A
- APR: 11.74 to 23.74%
- True Interest: 9.89%
- Annual Fee: No
- Cashback: 5%
- 0% APR for: 14 months
- APR: 14.74 to 24.74%
- True Interest: 24.74%
- Annual Fee: No
- Cashback: No
- 0% APR for: N/A (9 months if transfer)
I would choose to have the Discover card, as it offers the most benefits out of the three that I looked at. It has a relatively normal APR variable, but the true interest is the lowest of them. As well as that, it offers cashback and no APR for the first 14 months. As well as that, it has no annual fee. This means that I would be able to use my credit card with relative safety, as long as I use it responsibly.
Sources:
https://www.nerdwallet.com/credit-cards
http://blog.readyforzero.com/the-4-most-dangerous-things-about-credit-cards-and-how-to-protect-yourself/#.WShZa-srKM8
http://blog.credit.com/2015/03/5-credit-card-dangers-112161/
https://handsonbanking.org/adults/using-credit-advantage/credit/the-benefits-and-risks-of-credit/