A credit card is the easiest way to build a history of good credit behaviour, depending on which your credit score will be assigned. Having a good score is quite essential, as based on it the bank decides whether you are eligible for a loan or not.

Hence, you must understand the role that a credit card can play in your financial life, in order to be able to use it to your advantage. While using a credit card you must also make sure that all your credit card bills are paid in full and on time, each month.

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Like many, if you also think that a debit card is a good alternative over credit card, then maybe you are not aware of the dangers of using a debit card. Debit cards are directly linked with your bank accounts. Using your debit card to make online payment involves the risk of online fraud which probably can clean out your entire saving account. In such a case you will lose your money and perhaps to meet your expense you will have to borrow money from others.

Also Read: 5 Worst Ways to Borrow Money