Convenience is the first word that springs to mind when talking about credit cards. They are a quick and easy way of borrowing money and when managed effectively give the user all the features promised in the glossy advertising.

Complex is the second word that springs to mind around credit cards. There are so many types of credit cards with so many different aspects to each that it is bewildering to choose just one or two. Luckily the Internet can help us with a third ‘C’ word when it comes to finding the best credit card. Comparison of all credit cards against all other credit cards and against all of their aspects is easy with credit card comparison websites.

It is easy to forget the single biggest convenience associated with credit cards in all the media hype about them. They do give you a free loan for up to 55 days if you pay up the balance on your monthly statement. Yes no interest at all if you pay in full, in time and there aren’t many things you can say that about in our modern World.

Here are some other advantages of doing your spending with credit cards:

Ø  Your monthly statement is a very clear and simple budgeting tool that won’t let you forget the free loan period.

Ø  Credit cards are a secure and easy way to pay for products and services both at home and abroad, especially if you are buying over the Internet, over the phone or mail order.

Ø  Credit cards carry insurance against loss of your purchases. Consumer protection legislation puts responsibility on card issuers and retailers for damaged goods.

Ø  Credit card companies also protect the cardholder against fraud. As long as you follow the notification procedures and can prove you are the innocent victim of fraud you will not be charged if a criminal gets hold of your credit card.

Ø  Credit card companies are forever innovating on the services they provide in addition to the basic credit card. There are loyalty points with cash back, payments to good causes, AirMiles, or gas refunds.

Ø  Credit cards are accepted worldwide so you need never be stuck without funds.

All of the disadvantages with credit cards come down to ineffective management:

Ø  Credit cards cost a lot in interest repayments if you don’t pay up the balance every month. Interest rates vary greatly from card to card and over time so keep you debts to a minimum you should comparison shop for the best credit card deals.

Ø  If you do want to make a large purchase you may be restricted by the spending limit on your credit card. Limits for first time users are often as low as $1,000 to $4000 while for those with a good credit score and track record of responsible borrowing limits are much higher.

Ø  Credit cards are confusing and complex financial instruments that can get out of hand quickly. They should be fully understood before committing yourself to using them regularly. Credit card comparison websites can give you all the guidance you need to make the right choice