Do We Need Credit Cards?

Have you ever wondered why we need credit cards? Do you think that if you had one you would not be able to control your spending? If you don’t ask yourself this question, you will later wonder what the purpose was for me to apply for one. Before you get one of these little pieces of plastic, you should first understand a few things about them.
There are fixed rate cards and variable rate cards. You want to go for the fixed rate so you will know that the interest rate they will charge you will remain the same where the variable rate card can be changed at any time the companies fees the need. The interest rates can range from 6% up to 24% and is decided by your situation. If you have no prior credit than you will be seen as a risk and will automatically get the higher rate.
Some card charge an annual fee which is something you pay just to have that card in your wallet. Avoid those type of cards. Balance transfers can be of benefit to move your balance from a high rate card to a lower rate which will save you money. Some cards charge for this transfer which might end of costing you what you would have saved, so do the math and read the small print.