What are the advantages and disadvantages of having a credit card?

I'm 16 and I've heard a lot about credit cards and how they can be good and bad depending on certain things but what I want to know is what are the benefits and disadvantages of having a credit card? Is there any benefit to having a credit card at 16? (I'm a pretty responsible guy. I do have money but not a credit card and I don't just spend my money hopelessly)|||I waited until my 40's to get a credit card - I could see that gas stations (especially outside of town) REALLY didn't want to take my check anymore. They didn't know who I was.





So I applied all over to get a credit card - it wasn't easy as I had no credit record although I'd borrowed big sums to build houses before - but that doesn't count. I got one - and now I can travel anywhere and get gas - emergency cash - buy a new tire - buy a new car if need be. It's like having $10,000 in your pocket.





BUT never ever let those guys talk you into "carrying a balance" or they will skin you for a lifetime.|||I don't think you can get a credit card at 16, pretty sure you need to be 18 to get one. That said the benefits of having a credit card are as follows:





1) Establishing Credit - The responsible use of a credit card over time generates a beneficial credit history and allows the person access to better and more favorable credit lines as needed. Credit is one of those things it is best to develop BEFORE it is needed.





2) Consumer Protection - Unlike debit the users of credit cards generally benefit from a zero liability in respect to fraud, so if your card is copied/cloned and used without your knowledge or consent you are not responsible for that amount (assuming you were not liable).





3) Rewards - Often credit cards provide a "cashback" or rewards program for purchases, allowing the user to accumulate rewards on purchases that, if made with cash, would have generated no such benefit.





4) Warranty / benefits - Most platinum and gold cards offer some sort of extended warranty on items purchased with them, along with travel / car rental insurance and so forth. Saving the user money as these do not have to be purchased from the vendor.





Ultimately there are benefits to holding a credit card or two, but these are contingent on responsible use of credit. Paying off your bill in full every month (or at least ensuring that you are aware of the carrying charges) and using the card as you would cash is critical.





Good luck.|||The advantage: (1)money for emergency's (2)you guy buy things and pay for it at a later date, (2)not having to cary large amounts of cash (4) sometimes you get points to use for trips, and other things.


Disadvantages (1) too easy to spend money you don't have (2) you have to pay interest|||All the good you hear about credit cards comes from CC issuers who want you to spend more money than you can afford.





All the bad you hear about credit cards comes from CC users who spent more money than they can afford.





CC issuers know human nature. Humans are impatient, egotistical, greedy, forgetful, careless, easily impressed and swayed, etc. All of these traits lead to $billions of profit to CC issuers. Humans can't save to pay cash for that big screen TV. And they must have the 108" model to show off to everyone else. And they want two of them. They forget about making the payment and incur late fees. Must have the latest and greatest even before the last latest and greatest piece of technology is paid off.





Responsible people are able to live within their means - they don't need credit cards.





The difference between a loan and a credit card:


a. Loans are a way of borrowing a fixed amount of money for a specific purpose for a specific period of time with a fixed interest rate.


b. Credit cards is a way of borrowing and unspecified amount of money for an unspecified purpose for an unspecified amount of time with a variable (usually elevated) interest rate. Closer to loan sharking and payday loans.





Just keep this in mind. When you use a credit card and carry a balance, you are paying a "tax" to the CC issuer that can amount to as much as 30% APR. If you can't afford to pay $2,000 for a big screen TV, why in the world would anyone be able to afford $2,700 for the same TV? Because they are impatient. They want that TV NOW!|||no disadvantages to having a credit card. maybe only if you carry a substantial balance on it. and it lets you buy stuff online and whatever else, also starts to build your credit rating, but to build credit you do have to use the card|||No advantages or disadvantages. All that's dependent on how wise you are with it's use.