Financial Planner Guide

Credit cards are a standard part of our economy. Almost everyone in the United States has at least one credit card. Some of the types of credit cards available include MasterCard, Visa, Discover Card, and American Express. Under the Visa and MasterCard umbrellas, there are many credit cards issued by airlines, rental car companies, hotels, cruise lines, online shopping sites, and other offerings.

With these cards, you accumulate miles or points toward awards or travel. There are other credit cards available as well: department and home improvement stores, gasoline companies, large discount stores, and local stores. Almost every store offers their own credit card to its shoppers in an effort to keep them coming back to the store.

Without even filling out an application for a credit card, you probably receive credit card offers in the mail if your credit is good. Some offer low interest rates as an introductory offer and instant approval if you send in the accompanying offer. You can also get instant approval in most stores for their credit card if you fill out a short form. You must provide another credit card to show you have existing credit, and you leave the store with yet another credit card.

Credit cards can be a very convenient way to pay for purchases and keep track of your expenditures. But beware of credit card debt. You can overextend yourself without even realizing it. If you take advantage of all the credit card offers and have many credit cards to keep track of, or if you find yourself only paying the minimum amount on each card, you probably have too much credit card debt. This is a danger sign for your debt control efforts.

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