Hello World! Welcome Friends! Most people given a choice would eschew debt altogether and be free of installments, terms, interest, and the stress many endure from having too much. But the suggestion from financial corners is that this is not our reality. In our world, a degree of debt is supposed to be beneficial; stick with me on this.
One financial tool that makes sense for alle (all, everyone, everybody) is a credit card. These get a lot of bad headlines concerning the harm they can do, but it’s often neglected to mention that’s when they’re placed in the wrong hands.
With sufficient discipline and management, these can have quite a few positives since they can substantially affect credit profiles. With that comes a significant impact on a person’s life – wholly.
Without having credit cards, or debt, if you will, there can’t be a credit profile. Then everything that having credit can afford you will be challenging to achieve, like getting into college, obtaining suitable employment, buying a home, purchasing a car, and on.
It’s not impossible without credit; nothing is impossible. You could be independently wealthy. But not having credit does make things somewhat more complex. Let’s look at why people choose to have credit cards and establish a credit profile.
Why Should All People Consider Obtaining At Least One Credit Card
Credit cards get a bad rap the majority of the time. Many people consolidate their high-interest credit card debt into personal loans or onto balance-transfer 0% APR introductory credit cards to get rid of excessive amounts of this sort of debt.
The problem in these scenarios is that the credit cards grow out of control because the consumer doesn’t follow the rules associated with the financial tools.
When you use them haphazardly with no sense of discipline, allowing the interest to accrue from one month to the next, only paying the minimum balance, the debt incurred will become exorbitant in time. This creates the negative label associated with the cards.
The credit card can be a beneficial financial tool when used correctly. That entails ensuring the cap given by the issuer is a reasonable one for your financial circumstances. If you think it’s too high or prefer it to be lower to maintain self-control, contact the issuer to have the limit reduced.
When using the card, always make sure to keep the balance low and affordable to be able to pay the amount in total with each monthly installment. When you pay the card off each month, no interest or balance will transfer to the next month.
There will be no fees and no charges. What will be is an excellent report to the credit bureaus as you continue to pay promptly and maintain a low balance. So why is it important to work so diligently to develop this credit persona? Check out why you must carry a credit card and follow the rules.
Boosts Credit Profile
By following the proper credit card rules, keeping a low balance, and paying prompt payments, you will develop a good credit profile, including increasing your score. The better your credit score and history, the more it impacts your life positively.
With an excellent rating, lenders look at you more favorably when applying for things like a home loan, buying an auto, or even when putting in college applications. The suggestion is that business leaders have started looking at credit as one of the contingencies for hiring for specific company positions.
If credit scores are favorable, insurance carriers will look at credit when considering a client for auto coverage or homeowners providing better rates for many of their products.
Usually, individuals with average to poor credit standing have minimal, if any, financial opportunities presented to them. It takes considerable hard work and effort to make improvements in order to function without paying exorbitant prices or missing opportunities due to being seen as a risk factor.
Shopping Costs More Without a Credit Score
Without a credit card, you can’t shop with online vendors meaning you’ll be paying more by heading to brick-and-mortar establishments. Online storefronts are able to charge lower prices, offer better promotions, and give awesome discounts because they have lower overhead without having to operate a facility.
Payments are made via a credit card when you shop with an online vendor. With the substantially higher gas prices we’re all facing, you not only have to pay more with the real-time stores, but you also have to waste gas driving there.
Emergencies Are Handled in a Blink
Most people have enough money with them each day to handle the daily essentials. With a credit card on hand, there’s a backup in case auto disrepairs happen.
If you were to get stranded on the commute, you could get roadside assistance, a tow, and possibly have it fixed while maybe staying in accommodations nearby so you can pick it up when it’s ready.
You can handle any unexpected costs during the day with the card with the knowledge you’ll just transfer the money from your bank account to manage the balance straight away when you have access at home.
No one ever knows when there will be an emergency, an accident, an illness, or an injury where you’ll be stuck without cash and a financial need. A credit card allows you to always be prepared. Funds will always be available if you keep the balance low and the card paid off with each monthly installment.
Developing a Budget is Easy
Maintaining records of what’s been paid is virtually impossible when spending with cash. Even if you try to hold onto receipts, they always tend to get away from you.
With a credit card, the statement coming out each month will show each transaction when it was made and the amount. These are generated online, so you always have access making it possible to create a simple, well-thought-out budget incorporating the payoff amount you anticipate each month for the cards.
Stolen or Lost Cards are Much Easier to Replace than Cash
When someone steals your wallet or bag, and all you have is cash, there’s literally no way to get that back, nor can you catch up with what you lost, at least not easily or quickly.
It’s the same if you were to pay a cashier with cash and they mistook your $20 payment for $10. With them putting the money immediately into the drawer and giving you change from what they perceived as a $10 bill, you only have your word against theirs.
If you use a credit card, you don’t have to worry about a card being lost or stolen and unrecoverable or someone misunderstanding your payment without a record before you sign it.
Calling the credit card issuer will stop activity on the lost card, with most fees generally waived for the activity involved and the company issuing you a new card straight away. You usually get your new card within roughly a week and suffer no repercussions from the missing card.
Final Thought
Credit cards don’t create debt. The people who take them out either use them responsibly and receive positive benefits, or they mismanage them and eventually experience a cycle of high-interest debt.
The tool is designed to establish and build good credit for the average person. In the world we live in today, good credit is vital for a functioning, thriving, financially stable lifestyle.
If you don’t feel you have adequate discipline and self-control, it’s wise to speak to a financial or credit counselor to navigate the best method for helping with that. As a rule, everyone should obtain a credit card if they qualify, using it effectively and efficiently for their overall financial well-being.
Click the links below for any posts you have missed:
Replacing and Installing Your New Mentor OH Air Conditioning System
AC Service and Repairs in Springfield, Illinois
Why is My Garbage Disposal Jammed?
5 Amazing Benefits to Steam Cleaning Carpets
What Is It That Makes a Perfect Reading Corner?
Saving Money In Your Home Doesn’t Have to Be Tricky
I’d love for you to join my email list! You’ll receive a notification straight to your inbox which will include links to my latest home project posts! Simply enter your address below.
Thanks for stopping by! Have a wonderful day/night depending on where you are in the world! Go with God and remember to be kind to one another!
Toodles,
[…] Consider Obtaining Credit Cards […]