Benefits Of Credit Cards And Why You Should Get One Now!

I’m pretty sure that at least one person in your life has tried to get you to use a credit card. Whether it is a relative suggesting you get one, a company sending you an application in the mail, or a persistent salesperson offering to sign you up for a store credit card, getting you to use a credit card is their ultimate goal. But why do they keep trying?

Well, ultimately, creditors want you to take your time paying back what you owe. So, they hope that they will earn more money through your interest payments. But if you handle the card responsibly, you can experience some sweet benefits!

So, keep reading to learn why you should get a credit card now.

Number One: Credit Cards Helps You To Build Your Credit History

Getting a credit card as soon as possible allows you to start your credit history. And by having a longer history, you appear more trustworthy to future lenders.

Why? Well, (if you use your card correctly) having a longer credit history shows creditors that you can consistently pay your dues on time, which makes you a less risky investment.

However, if you have a shorter history, they might not approve you for other loans. This is because they are not sure if they will get their money back or not.

Number Two: They Give You The Chance To Build Your Credit

On the same note, having a credit card for a longer time can give you enough time to build your credit.

So, if you want to qualify for a larger loan in the future (such as a mortgage), start using your card to reach a credit score that both you and your lender will approve of.

Because, ultimately, your end goal is to have the lowest interest rate possible.

Number Three: Credit Cards Can Teach You Financial Literacy Lessons

Now, I’m not advocating for you to get a credit card (or any other form of credit) without knowing what you’re getting into. So, it would be wise to look into material that you can read and watch to help you to avoid debt (and prevent yourself from falling into a financial pit). And, as a result of you learning more about credit cards, your financial literacy will increase too.

Some things that you may learn about are:

• credit utilization rates
• credit limits
• annual percentage rates
• opening and closing dates

Also, you might learn other valuable lessons, such as not to buy anything if you don’t have the money for it. Or, how to effectively balance bill payments between your credit and debit card (I’ll talk more about that later).

Number Four: Credit Cards Offer You Perks Through Their Reward Programs

Another reason why you might want to get a credit card now is because of their reward programs. However, the reward that you earn depends upon which company and card that you go with. For example, one credit card might reward card users with cashback on specific purchases, while another card might offer points or flyer miles instead.

So, it’s important for you to consider the type of card that you want and the benefits that you would like to go with it.

Number Five: Credit Cards Ensures That You Have More Secure Transactions

Something else that is beneficial about credit cards is their safety measures.

Some of them are that:

• You can make online transactions with a card not linked to your bank account.
• You can freeze your account if you need to.
• Some cards offer fraud alerts and notifications when your SSN is used to create a new account.

Number Six: They Can Help You Stabilize Your Payments

You can also stabilize your payments by ensuring that you are not exhausting all of your funds at once.

For instance, let’s say that you have a bill due one week, but you don’t get paid until the next week. Instead of overdrafting your account, you can simply pay the bill with your credit card and then pay your bill in full when you get paid.

Or, you can pay down the amount that you want to and leave a remaining balance (that will reflect the credit utilization rate that you want to the credit bureaus).

Related: Everything That You Need To Know About Credit Cards (The Beginner’s Edition)

But don’t forget, just because I’m advocating for credit cards DOES NOT MEAN that I want you to get into debt. So, use your card wisely and only use it on items that you know you can pay back.

I hope that you enjoyed this post!

Hannah Roberts

Hannah Roberts is the creator of Do. Live. Study. She loves to learn new things and hopes to help others as they go throughout their journey as an adult. You can connect with her below.