<

Here’s Why You Should Keep a Credit Card

With credit card offers coming at us from every direction, you may be wondering whether to keep or cancel your credit card. In this post, we will examine why you should keep a credit card and the benefits of being a cardholder.

TABLE OF CONTENTS

Why You Should Keep a Credit Card

If you’re like most people, you probably have a credit card or two. And if you’re like most people, you probably use your credit card for everyday purchases like gas, groceries, and clothing. But did you know that there are some very good reasons to keep a credit card in your wallet? Here are four of them:

1. You’ll build your credit history.

If you use your credit card responsibly (which means making on-time payments and keeping your balances low), you’ll start to build a solid credit history. This can be helpful if you ever need to take out a loan for a major purchase, like a car or a home.

2. You’ll earn rewards.

Many credit cards offer rewards programs, which means you can earn points or cash back for the things you’re already buying. Over time, those rewards can add up to big savings.

3. You’ll have protection against fraud.

If your credit card is ever lost or stolen, you can quickly cancel it and get a new one. And if someone uses your card without your permission, you’re not responsible for the charges (as long as you report the fraud right away).

4.  There are many benefits to keeping a credit card, even if you don’t use it often. A credit card can help you build your credit score, which is important for getting loans and favorable interest rates in the future. Additionally, having a credit card can provide a safety net in case of emergency expenses or unexpected bills. Finally, many credit cards offer rewards programs that give you cash back or points that can be redeemed for travel or other perks.

If you’re considering whether or not to get a credit card, weigh the pros and cons to see if it’s right for you. But overall, keeping a credit card on hand is a smart financial move.

How to Dispute a Charge

If you’ve ever been wrongly charged for something, you know how frustrating it can be. Fortunately, you can fight back by disputing the charge with your credit card issuer.  To do this, you’ll need to write a letter to the issuer explaining why you believe the charge is incorrect. Be sure to include any relevant documentation, such as a receipt or invoice.

Once the issuer receives your letter, they will investigate the matter and determine whether or not the charge should be reversed. If they agree with you, the charge will be removed from your account; if not, you’ll be responsible for paying it.  Disputing a credit card charge can be a hassle, but it’s worth doing if you think you’ve been wrongfully charged. By taking this step, you may be able to get your money back and avoid paying for something you didn’t purchase.

What is the Average Credit History?

When it comes to credit history, there is no one-size-fits-all answer. The length of your credit history is just one factor that lenders look at when considering your creditworthiness. That said, having a long and diverse credit history can be helpful in boosting your chances of approval for a new loan or line of credit.

So what is the average credit history? According to Experian, one of the three major credit bureaus, the median credit history length in the U.S. is 11 years. This means that half of Americans have a credit history that is shorter than 11 years, while the other half have a credit history of 11 years or longer.

Your credit history length is determined by the date of your first account opening. So if you opened your first credit card 20 years ago and have since opened several more accounts, your credit history would be 20 years long. On the other hand, if you only opened your first credit card last year, your credit history would be just one year long.

The length of your credit history is important because it makes up 15% of your FICO® Score☉ , which is the most widely used type of credit score.

How Does a Credit Card Compare to a Debit Card?

Here’s a question we get a lot: how does a credit card compare to a debit card? After all, both types of cards can be used to make purchases and withdraw cash from ATMs. And both types of cards are accepted by most merchants. So what’s the difference?

Well, for one thing, a credit card is a loan. When you use a credit card, you’re borrowing money from the card issuer. You’ll need to pay that money back, with interest, if you don’t pay your balance in full each month. Debit cards, on the other hand, are linked directly to your checking account. That means that when you use a debit card, you’re spending your own money.

Another big difference between credit cards and debit cards is that credit cards offer consumer protections that debit cards don’t. For example, if you use a credit card and something goes wrong with your purchase (say, you never receive the item you ordered), you can dispute the charge with your card issuer and get your money back. Debit cards don’t offer this same protection.

Closing a Credit Card When Should I Close My Account?

If you’re carrying a balance on your credit card, then it’s probably not in your best interest to close the account. That’s because closing a credit card can hurt your credit score in two ways. First, it can cause your credit utilization ratio to spike, which is the second-most important factor in your credit score. Second, it can shorten your average credit history, which is the third-most important factor in your credit score.

Of course, there are times when it might make sense to close a credit card account. If you’re paying an annual fee for a rewards card that you no longer use, for example, then it might be worth closing the account to save money. Or if you have a retail store card that you only use at that particular store, then you might want to close the account so you’re not tempted to overspend.

Ultimately, whether or not you should close a credit card account comes down to a personal decision. If you’re not sure what to do, then it might be best to speak with a financial advisor to get some professional guidance.

Conclusion

In conclusion, there are many reasons why you should keep a credit card. A credit card can help you build your credit score, which is important for qualifying for loans in the future. Additionally, a credit card can give you financial flexibility and peace of mind in case of an emergency. Finally, using a credit card responsibly can help you earn rewards like cash back or points that can be used for travel.

Deixe um comentário

O seu endereço de e-mail não será publicado. Campos obrigatórios são marcados com *