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Chinese people invented many helpful things such as gunpowder, paper money, chopsticks and umbrellas. Unfortunately as per the Chinese, they did not devise the idea of using plastic in the place of money. We can thank early American capitalists for that idea.

The first bank credit card was invented by John Biggins in 1946; since then, credit cards have, for a variety of reasons, evolved into one of the most versatile payment methods in todays' commercial world.

Most major stores today will take your credit cards, so you don't have to haul large amounts of unsecured and unclean currency with you. The only exception is the occasional small store, which only accepts cash. Also, by paying on your credit card in a timely fashion, you build a positive credit history.

In some countries such as UK, if you buy goods using a credit card and the goods turn out to be faulty, they are usually insured for a period of time, say two months, and you can be indemnified even for total loss. Credit cards are safe, and even if gun-totting miscreants help themselves to your wallet, you can make hit back by simply calling the credit card company and canceling the stolen card. Another thing going for credit cards is that you can keep track of your transactions, and it's thus easy to keep track of your expenditure.

Does the credit card work for you or do you work for your credit card? Most people's answer to that question will depend on how they treat their 'old plastic' as credit cards are known.

For many with burned fingers will tell you they didn't realize that things had gotten so bad until very late, because most credit card offers try to sound like they are actually running a charity. Well, they aren't.

This is not a campaign of hate, which is aimed at the credit cards.

They certainly have their benefits; American car rental companies require a major credit card before you are allowed to rent a car.

But, consider this scenario:

Often you generate an offer in the mail that sounds nice, maybe a new style TV or fridge. But the cost is $2000. But wait, you have a credit card that has a $5000 limit, and without thinking purchase the item. Usually, this is how your repayment schedule will work out. Most credit cards charge a minimum of the total balance, usually being two percent, of the total per month. If the interest rate is 18 percent and you only choose to repay that minimum amount of $40, then $30 of that will go towards your interest and a mere 10 percent towards the actual principle. Furthermore, it will take you 30 years to repay it and you will end up paying over $5000 in interest.

The illustration, although it makes credit card use sound a bit scary, simply shows that you should use your credit card wisely. And look at the fine print when filling out credit card apps.

Nevertheless, credit cards are here forever, no matter what the doomsayers are telling you.

Find articles covering every topic related to credit cards at Credit-CardGuides.com, a virtual credit card clearinghouse chockful of helpful information on choosing the credit card offers that best meet your needs, as well as links to low APR credit card apps and the most popularunsecured credit card applications .