Credit cards can be a great tool for making your life easier. But, of course, you need to know how to use them responsibly. If you’re looking for an easy way to build credit and make life easier without dipping into your savings account every time you want something new or unexpected to pop up, then you’ll find that credit cards are the way to go. Here are some reasons why having a good credit score will benefit you:
They often have great rewards
Rewards are a great way to save money on things you want. For example, you can redeem your rewards for cash, merchandise or travel. Rewards can be used to pay off your balance in full or make a purchase over time with no interest charges. If you carry a balance on your card, try one of the 3% cash back credit card types and put any rewards earned toward that balance each month. Financial experts like SoFi say, “3% credit card cash back rewards is just the beginning.”
They’re multi-purpose
Credit cards are a multi-purpose financial tool, so you can use them in a variety of situations. For example, they’re an accepted payment method for restaurants, stores and other brick-and-mortar establishments. You can also use them to make purchases online or over the phone using your computer or smartphone.
You may be able to pay for services like utilities, insurance and rent with your credit card—or even your checking account if you’ve set it up that way (although this isn’t recommended).
A credit card can be used to make purchases at certain types of travel sites like Hotels.com or Expedia.com.
You can use them anywhere
Credit cards are accepted almost everywhere, so you can use them to pay for almost anything.
You can use credit cards to shop online, at stores or restaurants, and even while traveling. You don’t need cash or coins—just swipe your card and the transaction is complete!
You can use them to build credit
A credit card is a perfect tool if you’re looking to build your credit. You can get a credit card with no credit and then use it to build up your score by paying off your monthly balance. This way, you won’t be tempted to overspend because no funds will be transferred from your checking account!
Credit cards are precious tools when it comes to managing your finances. But they can also be dangerous if you’re not careful. So it’s important to understand the ins and outs of credit card use before deciding to get one for yourself or someone else in your family. If you have any questions about how these cards work, feel free to reach out!