Credit cards, if used properly, can be useful and convenient, and can even help build a strong credit history that will help you with future activities like home-buying, paying for higher education, and even finding a job. Before you apply for a card, or allow your teenager to, consider the pros and cons.

Pros

• You can use a credit card to purchase a product or service that you need now but can't pay for all at once. For example, if your car breaks down, you may not have enough cash on hand for the repairs. A credit card can help you get your car fixed and on the road and pay for the repairs over time.
• Credit cards are often the only way to make airline, hotel, or rental car reservations.
• Credit cards allow you to buy over the phone or online.
• Carrying credit cards is safer than carrying cash.
• Credit cards can be particularly useful in short-term emergencies.
• Depending on your terms and conditions, your card give you purchase protection, travel insurance, frequent-flier miles, or cash-back bonuses.
• Using a credit card helps establish a positive credit history, as long as you use it wisely.

Cons

• Interest and fees may outweigh the financial benefits of frequent flier miles or other benefits.
• Having a credit card makes it easy to spend money you don't have.
• Bad credit debt could affect your future applications for mortgages, other installment loans--even job applications and insurance coverage.
• If you think of your available credit as an emergency fund, you are likely to find yourself in more debt than you can afford.