Everywhere we go, the word credit can be found, shining huge dollar signs in front of our very eyes. Everyday we receive solicitation and promotions offering us credit. Credit actually makes the financial world go round, yet just the mere mention of the word can make many people very nervous. So why does credit get such a bad reputation?It's been my experience that credit falls into the same

category as politics and religion. People have very strong

opinions about Credit. It has been around since the

beginning of mankind. People would borrow either goods or

services, to be repaid at a later date with interest.

There's nothing wrong with that. And like anything else, it

can be used, or abused. There are programs that allow you to borrow from your IRA,

or you can borrow from the equity that had built up in your

home. Credit card companies often offer promotions to

borrow

money at a lowered rate of interest for a predetermined

period. It's all good news for the consumer. One of the

simplest ways to borrow money to use a Credit Card. The

choices available are plentiful, with a variety of interest

charges, annual fees, loyalty programs, and reward

systems. Many companies offer 6 months no interest credit. This is

often an excellent way of saving money as you are basically

given an interest free loan for those months. It's even more

valuable if you are able to transfer some of the card debt

from a different company into the interest free loan. The

best advice is to make sure you always have the money in

the bank, or in a savings account, to pay off your card when

you are taking advantage of the interest free promotion. That way you benefit from earning interest on your savings

at your bank, but as soon as the interest free credit period

has ended, you can pay the entire bill off without being

hit for high interest charges. If you intend to pay off

you credit card bill at the end of every month, there are

many benefit programs and reward packages available. You can receive award points every time you make a

purchase

with that card. These points can be redeemed in cash or

discounts, and can even be used for the purchase of airline

miles, etc. Some companies offer a consumer guarantee

protection on items purchased with the card, and many

will extend the warranties on those items. Many offer

discounts such as car rentals, travel insurance, accidental

damage insurance for any products you buy. Also some companies charge an annual fee for using their

card (especially business credit card accounts), so these

should be considered against the cards benefits. If you

are not paying off your monthly credit card bills, look for

a card that offers a low interest. If you are paying off

your monthly credit card bills, look for additional card

benefits. Interest free credit periods are good news for

saving money. Credit Cards are an effective, and easy way

to

borrow money for a short time. Be wise and prudent when

deciding to use credit. The bottom line is the credit

card companies want your business, and there is a credit

card out there that can meet everyone's needs. The author has been on both sides of the "credit" table.

Through her experience she has been able to teach

thousands of people about how to use credit responsibly. Cecily Backstrom is passionate about credit and

is the webmaster of Rapidly Moving Credit

Author:
Cecily Backstrom