Credit cards are easy to use and administrate if you understand them fully. Besides, they allow you to make payments world wide. We recommend you learn basic elements to administrate and use your credit card in a smarter way.
 
Advantages and Disadvantages

Advantages  

• Being able to by at any time.
• Avoid carrying cash.
• Tracking of purchases.
• More convenient and faster than writing checks.
• It consolidates all bills in one payment.

Disadvantages 

• Increase on items cost (interest and financing charges)
• Additional charges 
• Financial difficulties (in case you don’t monitor your monthly expenses)
• It is easier to purchase by impulse

Three basic types 

1. Credit in one single payment

Products and services are paid with one single payment, inside a specific period of time after the purchase. This type usually does not carry interest. Examples are public service companies, medical services and some retail stores.

2. Installment Credit
Installment credit is also known as extra-financing. Merchandise and services are paid in two or more fixed installments of a pre-determined amount. It may have interest included, and there are retailers that offer 0% interest. Some examples are a few retail stores, car dealers, appliances stores, commercial banks, consumer financing companies, savings and loans, and credit and savings cooperatives. Money might have been loaned for a specific purpose, with consumer’s agreement to pay the debt in two or three more installments.

3. Revolving Credit

Lots of things can be purchased using this plan, as long as the total amount does not exceed the limit assigned to the credit card user. Payments are made regularly from time to time, on any amount or over the minimum payment. Interest is carried out on any outstanding balance. This type of credit is used in retail stores and credit cards issued by financial institutions.