When used responsibly, credit cards can be a great financial tool. They can help you build a positive credit history, provide secondary insurance for purchases and give you a convenient way to pay for things without carrying around a lot of cash
Credit cards are designed to allow people with little or no credit history to start building their credit history. That makes them great tools for anyone who’s recently entered the workforce and doesn’t have much of a credit history.
Credit card companies make money by charging high interest rates on outstanding balances. While they also make money by charging fees and penalties, high interest rates are their biggest source of revenue.
Having a credit card can help you build your credit history, but only if you use it responsibly. Building a positive credit history is important because it allows you to get loans at better interest rates in the future.