The Best Reasons to keep a credit card

The Best Reasons to keep a credit card – Credit cards have been around for a while, and they’ve only gotten more useful over the years. There are plenty of good reasons to own a credit card — not the least of which is the welcome opportunity it presents for building a credit history. But beyond that, a credit card can be one of the most beneficial things you can do for your personal finance. Here’s why: 1. It Builds Credit Credit cards are Demystifiable Facts . There is no denying that having a credit card can improve your credit score. In fact, according to some studies, having a credit card in one’s name can boost his or her score by up to 20 points on average. If you have bad credit and don’t know how to get started improving it, a credit card could be the perfect investment for you. Keep reading to learn more about the benefits and risks of owning one.


What are the benefits of owning a credit card?

You get easy access to cash. Credit cards come with special financing options that make it quick and easy to draw from the account for emergencies or major purchases. You can also set up a payment plan that lets you pay off your card each month without taking a pay cut. This is especially helpful during a time when you’re unemployed or working a part-time job. You also get the opportunity to build your credit score. A high credit score can open doors for future financing options and future purchases.

What are the risks of owning a credit card?

You could end up paying an expensive interest rate. The average annual percentage rate (APR) charged on credit cards is around 20 percent. That’s a lot higher than the average interest rate charged on loans. And, while the lender (i.e., the card company) has to put up some of the money you borrow, ultimately it’s the borrower’s responsibility to pay off the full amount. Because of that, you could end up paying more in interest than you would have if you’d gone with a lower-interest loan.

Why is having a credit card so good for your personal finance?

Many people have the misconception that credit cards are bad for your personal finances. While it’s true that finding a balance transfer credit card (i.e., one with a low rate) might make your credit score lower, it’s also important to understand that having a credit card doesn’t hurt you. In fact, having a credit card can be one of the most beneficial things you can do for your personal finances. Here are just a few of the reasons why: You build a credit history. Credit card companies take pride in monitoring your credit report and score, and depending on how you use your card, they may even let you monitor your credit score. If you make low-risk purchases, you can actually build a credit history that will help you get better interest rates in the future.

How to get a better personal finance score with a credit card

You get personalized attention. As someone who carries a balance, I can tell you that the convenience of being able to walk into a store and pay with my card is a huge FICO benefit. In contrast, a cashier who doesn’t question my use of the card can’t be as informed as someone who asks me questions about my financial situation.

The 3 biggest benefits of Credit Card ownership

In addition to the big savings and lower interest rates that come with a balance transfer credit card, here are the top three benefits of credit card ownership: Helps you build a credit history. Having a credit card in one’s name helps you build a credit score, which can lead to better interest rates in the future.

The 3 biggest risks of Credit Card ownership

Like anything, having a credit card comes with risks. The three biggest risks of credit card ownership are: Not understanding the terms and conditions of your card. It’s important to understand your credit card’s features before you sign up. Mistakes on your part. It’s important to keep a careful eye on your credit score and report, and make sure you’re not making any mistakes that could hurt your score. Lack of payment clarity. If you end up in a jam, you should be able to understand what will happen to your credit card and how you’ll be repaid.


A credit card is a tool that can help you build a credit history, secure a future job, and improve your finances. It’s also a good way to get the attention you deserve and negotiate a lower interest rate on future credit card bills. In short, a credit card is a great thing to have on hand.

Deixe um comentário

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