It Might Be Time To Consider Getting A Credit Card
It’s safe to assume that you’ve been warned about credit cards during some point in your life. However, it may not be all bad. We have put together a list of reasons why it might be time to look into getting your first credit card.
Credit is Key
One of the biggest advantages of using a credit card is that it can improve your credit score when used responsibly. Regular use and prompt payment of your credit card balance is one of the easier ways for you to build credit. Your credit score is critical in many parts of your adult life. Whether it is to get that new car you’ve been looking at, buying a house, or maybe getting a cellphone your credit score plays a huge part. It is important to note that one missed credit card payment can make your score drop. You should always keep a close eye on your payment history and stay on top of it!
Check out our credit building loan for another great way to build credit!
Did you know you get more protection if you pay with a credit card than if you pay with a debit card, cash or check? The Fair Credit Billing Act (FCBA) allows you to dispute both fraudulent charges on your account and merchant errors. You also have more time to dispute a credit card charge than a debit card charge. With a debit card you have fewer days to dispute a transaction than you do with a credit card. Credit cards also allow for peace of mind knowing you don’t have to worry about your PIN number being stolen or having the immediate impact on your account balance like a debit card does.
The better your credit history is, the cheaper it is to borrow money. If you have a high credit score you are more likely to receive a lower interest rate rather than if you have a low credit score! If you’re paying off a mortgage, vehicle payment or student loans, those savings really add up. This meaning more money for you to do the things you really love.
Rewards for Spending
Many credit cards offer rewards to their users! Rewards mean you can earn points for spending money. Each credit card is different in the points and rewards they offer. For some companies you can earn points for each dollar spent on travel, dinning, gas, and more. These points then can be spent on items online, gift cards, flights, hotels, gifts, and much more. Hellllllo beach vacation you’ve been dreaming about! Sounds like a win win to me!
We recommend having an emergency fund set aside in your savings in case anything unexpected is to happen. Being prepared is the best way to prevent an emergency. However, we understand this may not always be the case, a credit card can be helpful in case of the unexpected situations come up. They can cover you when you’re in a tough situation with limited funds in your account. Credit cards should be your last resort for emergencies. Rely on your emergency fund first if you can. If you can’t, the credit card might be able to cover you in the meantime.
We know that credit cards aren’t for everyone however, it might just be the next step in your financial journey. We always recommend that credit cards are used responsibly! Apply for a credit card here today!