Alternatives to Traditional Credit Cards
Americans have a love/hate relationship with credit cards.
We love the convenience, we hate the payments.
We love the status symbol, we hate the payments.
We love the ability to buy stuff that we don't have to save up for, we hate the payments.
Get the picture? If you hate credit cards enough to not have any, you are probably looking for alternatives.
In the 21st century, it seems to be almost required to have some type of credit card.
Here are some alternatives to the traditional credit card.
Cash This one is easy - just carry enough cash to buy what you need to.
This is good because you will not be borrowing money when you use your credit card.
Also, it will make sure that you do not buy something that you can't afford.
But those benefits come with some problems.
With the price of gas skyrocketing, most gas stations will make you pay in advance if you are paying with cash.
Some rental car agencies and hotels will not let you rent or get a room without a credit card.
Debit Cards A debit card works just like a credit card except each purchase that you make comes right out of your bank account.
The cards carry the traditional Visa or Master Card logos and are accepted at most all places that the regular credit cards are.
While this will give you the convenience factor, it comes at a price.
If you should ever loose your card or have it taken, your whole bank balance can be wiped out.
Store Gift Cards You will find that most stores and gas stations will offer pre-paid gift cards.
Like debit cards, it will keep you from spending money that you do not have.
But, you will only be able to use the card at the specific store that you bought the card from.
Pre-Paid Credit Cards This is a relatively new item.
It is a lot like a store gift card, except the card that you buy will have a Visa, MasterCard or American Express logo on it.
It will also be accepted at just about all of the places that the real credit cards are.
Again, you will have the convenience of having a credit card without going in debt when you use the card.
However, you are locked in to the amount on the card.
If you are shopping and find something that you want that costs more than you have on your card, you will either have to wait or come up with the difference in cash to buy the item.
In most instances, when you purchase the card, there will be a fee that is charged.
It is relatively small ($3 - $5), but it is just something to be aware of.
As you can see, there are positive and negative points for all of the methods above.
Some of the options will work for some people or circumstances and some will not.
Just choose the one(s) that is most compatible with the way that want to use the alternative and switch methods if you need to.
We love the convenience, we hate the payments.
We love the status symbol, we hate the payments.
We love the ability to buy stuff that we don't have to save up for, we hate the payments.
Get the picture? If you hate credit cards enough to not have any, you are probably looking for alternatives.
In the 21st century, it seems to be almost required to have some type of credit card.
Here are some alternatives to the traditional credit card.
Cash This one is easy - just carry enough cash to buy what you need to.
This is good because you will not be borrowing money when you use your credit card.
Also, it will make sure that you do not buy something that you can't afford.
But those benefits come with some problems.
With the price of gas skyrocketing, most gas stations will make you pay in advance if you are paying with cash.
Some rental car agencies and hotels will not let you rent or get a room without a credit card.
Debit Cards A debit card works just like a credit card except each purchase that you make comes right out of your bank account.
The cards carry the traditional Visa or Master Card logos and are accepted at most all places that the regular credit cards are.
While this will give you the convenience factor, it comes at a price.
If you should ever loose your card or have it taken, your whole bank balance can be wiped out.
Store Gift Cards You will find that most stores and gas stations will offer pre-paid gift cards.
Like debit cards, it will keep you from spending money that you do not have.
But, you will only be able to use the card at the specific store that you bought the card from.
Pre-Paid Credit Cards This is a relatively new item.
It is a lot like a store gift card, except the card that you buy will have a Visa, MasterCard or American Express logo on it.
It will also be accepted at just about all of the places that the real credit cards are.
Again, you will have the convenience of having a credit card without going in debt when you use the card.
However, you are locked in to the amount on the card.
If you are shopping and find something that you want that costs more than you have on your card, you will either have to wait or come up with the difference in cash to buy the item.
In most instances, when you purchase the card, there will be a fee that is charged.
It is relatively small ($3 - $5), but it is just something to be aware of.
As you can see, there are positive and negative points for all of the methods above.
Some of the options will work for some people or circumstances and some will not.
Just choose the one(s) that is most compatible with the way that want to use the alternative and switch methods if you need to.
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