[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.
[I]f you have a goal to improve your credit score for the new year, you need to set up steps to help you achieve this goal. For many, they read all kinds of information about how to get a good credit score, and it can be overwhelming. Sometimes, it can sound so easy but not […]
[T]here are three major credit reporting agencies: Experian, Equifax and TransUnion. All of them provide a credit report which lists your personal information and credit accounts. You can get one report for free each year or purchase extra reports through the agency sites. Many people just get one credit report, but you really should get […]
[A]s you get credit cards, you will notice they give you a credit limit. This is the maximum amount you can spend on the card without paying some of it off first. Credit card companies often increase your credit limit as you prove responsible handling the amount you have. You may wonder if more credit […]
[I]f you have bad credit, it can be difficult to qualify for a car loan. However, it’s not impossible. Before you go out and apply for money to purchase a vehicle, there are some things you should know. Check Your Credit Before you fill out any applications for car loans, you need to take a […]
[M]any people hear that they have bad credit, which means they haven’t always been responsible with their credit accounts. However, it is another situation entirely when a person is told they have no credit. You may wonder how that’s possible and what it really means for your future. No Credit Doesn’t Mean Never Any Credit […]
[T]ransUnion is one of the three credit bureaus which stores information about consumers and their credit history. It provides this information to creditors and to consumers. TransUnion was founded in 1968, and it now has more than 200 offices through the US and the world. How TransUnion is Different TransUnion is similar to the other […]
[E]quifax is one of the three major credit reporting agencies which provides information used on your credit report. It has a credit score which will impact your ability to get approved for new credit. All of these agencies aren’t the same, so here is some information you should know about Equifax. Equifax is headquartered out […]