Credit card holders are simply tired of abuse by credit card lenders and many are cutting up their credit cards in protest. However, before you do this, consider the short term and long-term impacts of doing so.

What you need to know is that credit cards are still an important resource and financial tool for the consumer. Without them, you could be affecting your chances of securing a loan in the future.

Why Is Everyone Frustrated?

Many people are frustrated over what is occurring in the credit card market right now. In preparation for the impending Credit Card Act going into place in February of 2010, lenders raised their rates to some of the highest rates possible.

They did this because there will be limitations on the types of increases they can make in the future. Further, consumers are hurting after the economic difficulties in the financial sector as a whole. Credit cards, with their high interest rates, simply just hurt more than help.

Nevertheless, there are good things about having credit cards. The bottom line is that you need to be able to control your spending in regards to those credit cards, especially if you hope to avoid having to pay those high interest rates.

Consider a few of the advantages of having credit cards for fair credit, for example.

With a credit card, you have the ability to make purchases in emergencies that you might not be able to make otherwise. Unless you have the funds in reserve to pay for that $5,000 car repair, a credit card offers a level of security.

Credit cards also help improve your credit score. Without them, you could find yourself struggling to maintain a quality credit score. This may not matter right now, but later, when you want to finance a car purchase or get a mortgage loan, it will matter.

Further, even employers are now using credit scores to determine if a person is responsible enough to work for them. Credit cards are the easiest way to improve your credit score, when used wisely.

If you want to rent a car or rent a hotel room, you will need a credit card to do so. Very few of these services now accept cash since a credit card gives them the ability to charge the costs and put a hold on the credit card while you borrow their service.

Further, it is clear that making payments using a credit card is simply easier to do then trying to make payments using cash. You may be a bit leery about the current credit card market, but focus more so on the way that you are using your credit card instead of what the latest regulations are. Instead of allowing yourself to carry a balance, pay it off in full.

Get the lowest interest rate credit cards for fair credit if you have it or select a credit card designed for those with excellent credit to avoid additional charges. Do not cut up that credit card. Instead, focus on using credit wisely.