by Susan Paige
We hear all the time how bad credit cards are; how they can ruin a person’s credit and drain their bank account. But how true is that claim? In reality, credit cards are as good or as bad as the person using them is responsible. True, if you go out and swipe your credit card like there’s a sale at every store, and then you don’t track any of those payments and refuse to pay them on time, then you’re bound to run into some trouble. But on the other end of the spectrum, if you are responsible with your credit card and use it wisely, it’s actually a very valuable tool to have. Here’s why using a credit card should be your primary payment method.
Helps Build Credit
If you want to increase your credit score easily, using a credit card is the way to go. This is where being responsible comes into play when using a credit card, as failing to pay off your monthly bill can rack up interest and cost you more money in the long run. However, a responsible credit card user will make their payments each month on time, and doing so will slowly increase your credit score over time. This will allow you to get better loans for a house or a car, and having a good credit history will certainly look better on your record than having to file for bankruptcy.
Who doesn’t like free money? Certain credit cards offer certain incentives to get you to use them, such as cashback on every penny spent. This typically ranges anywhere from 1.5 percent to 2.5 percent, which can really add up over time. It may not seem like a large amount, but how can you complain when you’re getting money back on items you’d be buying regardless? You can use all the money you’ll be saving on groceries, car repairs at a place like Precision Restorations, or even something as trivial as a trip to the salon.
Safer Against Theft
The thing about losing cash, whether due to personal negligence or theft, is that when it’s gone, it’s gone for good. However, losing a credit card is as simple as calling the credit card company, canceling the card, and ordering a replacement. There might be some time spent sorting out the details, especially if your wallet gets stolen and your card is used to make purchases in your name, but for the most part, these can be dealt with and you won’t be held responsible for them. As long as you remain on top of things, you won’t have to worry about your card being used against you.
A Penny Spent is a Penny Earned
Using a credit card doesn’t have to be scary. If you learn to use one correctly, it can actually earn you money back, build your credit, and provide a safer alternative to carrying cash around all the time. It’s in the way that you use it, and as long as you use it responsibly, you’re in the clear.