It seems like anyone can get a credit card these days. You don't even need to be looking for a card; offers will just show up in your mailbox. There's no doubt that credit cards are BIG BUSINESS, but how you use them can be just as profitable for you as it is for the company that gives you credit.
Self-control and common sense are important when it comes to spending, but that doesn't mean that you can't benefit from using plastic money. Why else would you want to use a credit card? I hate writing checks, so that's not it. Here are some reasons to take advantage and the best times to do so:
One of the main reasons I like using my credit card is that it gives me some protection. Have you ever bought something or used a service that didn't even come close to meeting your expectations? Well, you can have an extra fighter on your side if the seller of that product or service doesn't do what they said they would. I've only needed that protection a few times when I've used my card, but it's nice to know it's there, especially when making a big purchase.
Some credit cards give you rewards for buying things you were probably going to buy anyway. This is another great reason to use a credit card. Even if it's only 1% or 2%, I like getting cash back on the things I buy. If you can pay off your card every month, the percentage of reward you get is like getting free money or a discount on something you were going to buy anyway. Some cards give you 5% back, so do your research and find out which credit card rewards programme is best for you.
Having an active credit card account that is paid on time is a simple way to improve your credit score. The important thing is not to spend more than you can pay off every month, so that you stay current and don't go into debt. It feels good to keep the credit card paid off as well:)
The last one I'll talk about for now is how it keeps track of how much you spend. It can be hard to keep track of every dollar you spend during the day, so it's nice that your credit card company sends you a statement every month. By buying things of all different sizes with your card, you can hold yourself more accountable for how you spend your money. It can be one of those things where you look at your bill and realise just how much you might be spending every day. If you use this right, it could make you think twice about some of those "impulse buys."
There are benefits to having credit cards that can help you if you are responsible and plan ahead. If it's done right, I think the benefits can be much bigger than the bad things.
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