Overspending. Interest. Fees. Debt. It’s intimidating to think about getting your first credit card, but it doesn’t have to be.
It’s important to research what credit card would best fit your lifestyle before completing any applications. Not being a responsible spender, charging more than they can afford, and making late payments are what makes people dislike credit cards – not the card itself.
See how you can benefit from a credit card and make an informed decision.
Establish a Credit Score
One reason people apply for a credit card is to establish or improve their credit score. When the time comes to buy a car or rent an apartment, lenders will look at your credit report to see how well you’ve managed your debt. If you have no credit, it can be difficult to prove you are a responsible borrower.
Getting a credit card early in life and paying on time shows lenders you’re responsible. A good score will also improve your chances of getting lower interest rates.
Most credit card companies have rewards or programs you can use to your advantage. Common rewards include cash back, airline miles, gift-cards, or points you can use towards purchases.
If your card has zero fees and you’re paying on time without racking up interest, you’re essentially getting these rewards for no additional cost.
Convenience and Security
Credit card companies are great at monitoring your card and taking quick action if lost or stolen. They monitor your account for fraudulent activity and call or text if they are wary of any purchases. You’re also not responsible for unauthorized purchases on your card or at-risk of fraudsters getting money out of your bank account.
Certain cards also offer specific benefits like rental car insurance, merchandise return protection, and extended product warranties.
Be a responsible borrower and apply for a credit card that fits your lifestyle and needs. If you utilize rewards, make payments on time, and don’t spend outside your personal limit, you will be on the road to credit success in no time.