Description
This article is from the Credit cards and
Consumer Credit FAQ, by adams@spss.com (Steve Adams) with
numerous contributions by others.
401. Is it better to pay by check or by credit card, as a rule?
In general, it's better to use a credit card. When you pay by
credit card, the U.S. Fair Credit Billing Act gives you a lot of
protections (see section 5, "Billing errors and overcharges").
These safeguards don't apply if you pay by check or by debit card.
However, be aware that credit-card debt is about the most expensive
legal kind there is. With banks paying as low as 3% on savings (as
of January 1992) but charging 19% or more on credit-card balances,
it makes sense never to carry a balance past your grace period.
Household budgeting is beyond the scope of this FAQ list. But
always bear in mind that if you're paying by check because your
credit cards are maxed out, you may well be overextended and may
want to think about deferring major purchases. Even if your cards
aren't maxed out, if you're carrying a balance from month to month
you are paying dearly for the privilege.
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finance, debit card, credit card, secured card, guaranteed card, unsecured card, consumer credit, bad credit, credit report
