Credit cards! If you're like most people, you probably love them some times and hate them other times. They can be a great way to manage your finances and they can be a terrible bill to get every month.

But credit cards aren't all bad. If we could live our lives without them, we would. But we can't. The world is simply not built that way anymore. More and more often, companies require credit cards as the best way to receive payment or security, rather than cash or checks.

But a credit card is just a loan. Few people realize it as such, but that's all it is: Simply a loan that you can use if you want, but you don't always use. A credit card is like a constant line of credit that is represented by the piece of plastic you carry in your wallet or purse. It says to the shop owner that someone has checked you out and deemed you worthy to receive a certain amount of credit line in order purchase the product offered for sale.

Used wisely, a credit card is an excellent financial tool. The first advantage a credit card offers is the ability to manage your finances. This means that you can buy things you want or need and defer payment until you choose.

If you have a credit card that provides you with reward points or rebates or discount opportunities, an advantage that credit card offers is to help you leverage your current purchases by building up points or generating discounts on the money you spend.

The third advantage a credit card can offer you is the additional layer of purchase protection. Some credit cards come with an extra insurance package so that purchases you make it any retailer are also covered by the credit card.

The fourth advantage a credit card can offer you depends on the credit card you get. Some credit cards offer travel insurance, car rental insurance, and even concierge services for a small fee. Depending on how busy your life is, or how often you travel or rent a car, having these advantages built into your credit card may be a wise financial decision for you.

A credit card is just an ongoing loan to you represented by a piece of plastic. But used wisely, this loan can offer you much more than other types of loans. Credit cards are not always bad. Consider whether you should add a couple to your financial portfolio.