Credit cards provide convenience particularly if you have an important purchase that you need to make right away and cash on hand is not available. Having a credit card has a good and bad side. Are you familiar with horror stories related to credit cards? It does not happen all the time but irresponsible credit cardholders experience this terrible thing. If misused, it can really get you into trouble especially for young credit cardholders. Without control, or have maxed out not just one but several credit cards will cause you financial problems. But, if used sensibly, credit cards can benefit your credit rating! Before you throw that piece of plastic away, here are few good reasons why you shouldn’t let that plastic go.
Benefits of Credit Cards
- Credit card rewards – Using a credit card is an advantage especially if you can get the rewards. Credit card companies provide rewards to entice their clients to keep on purchasing and pay their obligations on time to be able to receive points which can be converted to merchandise, discount and other good stuff.
- Builds credit ratings – Young professionals, teens and carefree cardholders may not see the advantage of having good credit ratings. Time will come that they are going to need a bigger purchase, (more than just a bag, gadget or shoes) like a car or a house. Building a nice credit score is one key to obtain a loan from major banks and other loan providers. It is best that while you are young, be a responsible credit cardholder.
- The convenience that credit card brings – Admit it or not, life becomes easier if you have a credit card with high credit limits. The buy now pay later scheme is ideal if you have insufficient cash.
- Protect your cash –Carrying a large amount of cash is quite dangerous. It is risky to carry wads of cash especially if you are using public transportation. Thieves are everywhere, they can attack you anytime. People who carry large amounts of money often become a target of crooks. You could lose your money, misplace your wallet and worst is you might not be able to get your money back. With credit cards, you can simply make a call to cancel it straight away.
Owning credit cards is not a bad thing. Credit cards can benefit your credit rating. To avoid missing payments, you can set up a direct debit to your credit card, this way you can rest assured that you are paying your bills on time. Be a responsible credit cardholder. If you find yourself with a bad credit history and are struggling to be approved a credit card then get in touch with Clean Credit and we can help!