Many people who carry credit cards originally got them just for the ability to be able to not have to carry large sums of cash and be able to just pay with a card. Others may get them so that they have access to cash advances when they need them, but there are other simple ways of borrowing money. The credit card industry is booming with millions of consumers and increases all the time but not very many people realize that there are alternatives to credit cards.
One widely used alternative is the debit card which allows you the convenience of carrying a card and are sponsored by companies like VISA and MasterCard but the debit the money from the account you have them attached to immediately. The cool thing about these cards is that they are widely accepted just like a credit card so they come in handy for renting cars, reserving hotel rooms, etc. I have a debit card attached to an online account that I use almost exclusively and I love it, it even pays me cash back.
Another great alternative to credit cards is the pre-paid card which you have to have secured with money that you prepay in order to be able to use the card. This is very similar in a way to a prepaid cellular phone and in much the same way that with a prepaid cellular phone you cannot go over the minutes that you pay for, neither can you go over the amount that you put on a prepaid credit card. These types of cards are good to give to kids to help teach them responsibility and are also much safer than using a debit card due to the fact that they aren't attached to a bank account.
Most banks offer an overdraft protection which can be used in combination with a credit card to make for a better way of borrowing money than by taking an advance on a credit card. The way that the bank determines the limit for the overdraft is buying looking at how much your monthly deposits are. A bank overdraft protection gives you in essence, a short term loan at a much lower interest than you would find elsewhere.
If you are going to be making a purchase such as a vehicle or maybe a big screen TV this is a purchase you should be able to plan for. Another example would be making improvements on one's home. If you plan properly you can take out a low interest loan instead of using a credit card to make the purchase which would result in a high interest rate.
If you live in an area that has credit unions you should know that they are an excellent source for low interest loans. Instead of being owned by a corporation they are owned by the individual members and since they have very low limits placed on them by law regarding how much interest they can charge, they are a great source.
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