No matter where you stand with credit cards, you should find out more about the good, the bad, and the ugly sides of using them.

Credit cards can completely change a person’s life, for better or for worse.

Just like everything else in life, having a credit card can be a positive or negative experience. When a person understands the ins and outs of how they work, they can use them for their advantage. On the other hand, if they are irresponsibly used, you can be stuck paying back way more than you bargained.

Here’s how you can figure out how to make good choices and avoid the bad.

The Good

Most people grow up thinking having a credit card is a terrible choice.

Instead of completely fearing a credit card, there are so many positive choices you can make with a credit card. It’s all in how a person uses it.

When used properly and responsibly credit cards can be a huge benefit to your credit score. If you don’t miss a payment and pay your balance in full every month, you can build and maintain a great credit score. You need a decent credit score to buy a house, get a car, or obtain a loan.

Although those examples can all be planned, we know there are unexpected things that pop up in life. Credit cards can help in emergencies. If there’s ever a drastic life change that you need money instantly, a credit card can help get you back on your feet for the time being. Just remember to pay it off whenever you can.

Credit cards can also elevate your buying experiences too. A lot of different companies offer cash back, bonuses and other incentives too. They key is to just make sure you have enough to pay off the balance every month.

The Bad

As we know, those incentives can be extremely tempting which leads people to credit card troubles. This can lead to a negative snowball effect that damages credit and puts people in lifelong battles with debt.

Although it’s nice to have a reward program, this can entice people to up credit limits and sign up for more credit cards. Some might justify this for more emergencies, but the more cards you have can be confusing. You might forget what card you used to pay. This begins bad habits.

This might not sound bad if you make positive decisions with your credit card, but a person can easily get in over their head.

The Ugly

On top of falling into temptations, some may find them selves making other negative credit card decisions.

The worst offenses someone can do is making late payments, only paying the minimum payment, and charging items you can’t pay off immediately. Not only does this hurt your credit score, the interest on credit cards will pile up.

With a combination of poor decisions, high interest rates, and emergencies, the ugly side of credit cards can come show it’s face.

Credit cards, when used correctly, can be effective financial tools. Make sure to avoid the bad and ugly habits to keep you on track of your debt free journey.