Getting a credit card is a great thing for someone who is mature enough with their spending to use it properly. There are so many great benefits that come along with credit cards that you don't get with a simple debit card. Here are three great reasons to get a credit card.
Help You To Build Credit
If you are looking to gain credit, then a credit card is an excellent way to do this. A credit card essentially opens another line of credit in your name, or perhaps the first line of credit in your name, and if you use it properly and pay it off on time, then it shows that you are good at handling your credit. This then increases your credit score, which is great if you are looking to make a big purchase. The key to proper credit card use is to treat it more like a debit card and only use it when you know you will have the funds to pay it off before it gains interest.
Potential To Earn Points
With some credit cards, each of your purchases allows you to gain points towards something. For example, if you get a credit card through an airline company, you may be able to earn miles each time that you use your credit card. These miles add up over time and can allow you to fly to certain locations for free, when you would otherwise have to pay. The great thing about this is that these purchases have to be made anyways, so being rewarded for making them only makes sense. When choosing this kind of credit card, just make sure that you are aware of what purchases earn you points, how many points are rewarded per dollar, when the points expire, etc.
Helpful In Emergencies
You never know what an emergency situation will arise that costs you a great deal of money. In these types of situations, you may panic if you don't have access to immediate funds. Thankfully, if you have a credit card, you know that you have money that you can use if you need to. This money will of course need to be paid back, but only in small increments, which is generally much more possible than in one lump sum.
A credit card is a great thing to have in order to gain credit, to help you earn points for different things, and to give you immediate funds in the case of an emergency.
One day I realized that I might have a shopping addiction. Every single thing that came across my computer screen or that I saw in stores I felt like I just had to have. It was an overwhelming, ever-present need, and it was really difficult for me. I didn't know what to do about it, so I decided to work with a counselor to overcome my obsession. She referred me to a financial counselor, and it really helped. Within a few months, I was able to see my problem and stop purchasing things that I didn't need. This blog is all about choosing financial freedom.