Good and Bad Reasons to Have a Credit Card

October 10th, 2017 | Author:

[G]etting approved for a credit card is a sign of responsibility. It can give you freedom with your finances. For instance, you can book a hotel or buy airline tickets, which would be difficult without a card. You should know why you want a credit card and understand if those reasons are good or bad.

Good Reasons to Have a Credit Card

If you’re looking to build or rebuild credit, that is a good reason to get a credit card. It will help to establish your credit rating or improve your credit score, so you can get approved for other things.

Another good reason to have a credit card is so that you can get the best deals. If a credit card pays you back with money each cycle when you use it for purchases, you are essentially being paid to shop as long as you pay off the balance before interest accrues. This is a great way to make a little extra money as long as you can hanel it responsibly.

Another reason for a credit card is the convenience it provides. People who travel a lot can book hotels, rental cars, airline tickets and more with a credit card. Without one, it can be difficult to enjoy these benefits.

Bad Reasons to Have a Credit Card

The number one reason not to get a credit card is so you can shop even when you don’t have money. If you can’t afford to buy something, you shouldn’t spend the money. People often fail to remember that a credit card isn’t free money. You are supposed to pay it back.

Another bad reason to get a credit card is to pay your bills. If you don’t have the money to pay your rent or utilities, getting a credit card only gets you deeper in debt unless you plan to get another job to pay it off.

Getting a credit card can be a good thing as long as your reasons are valid and responsible.

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