Many people ask, “Is using credit cards a bad idea?” and there is a simple answer. It depends on how you use them. Realistically credit cards are very useful and have become practically a necessity in today’s technological world. For many people, credit cards can actually be a very good idea, yet there are also many people for whom credit cards can be problematic.
Use the credit card chaser today to help you find a credit card that meets your needs and fits your spending style.
There are as many different credit cards out there as there are types of people. It is important to find a credit card that meets your spending style, financial goals, and interests in order to get the most from your credit card. The right card can save you money, help you out in a bind and even reward you, while the wrong one can cost you money!
Are there actually good reasons to use a credit card?
While credit cards definitely get a bad rap, there are several good reasons to have and use credit cards.
Establishing or reestablishing credit is a great reason to use a credit card. For those who have no credit, like young adults or those who have immigrated to the United States, getting and using a credit card will help them establish credit.
This is important for larger purchases, which need established credit, such as mortgages and car loans. Similarly if you have declared bankruptcy or have had a foreclosure negatively affect your credit, responsible credit card use can speed up the recovery of your credit score.
Online purchases are much easier if you have a credit card. Many people are hesitant to use debit cards that are linked to a bank account for online purchases. However, a credit card has built-in fraud protection, as well as protection for your purchases. Also, if someone fraudulently uses your credit card, you are not stuck with an empty bank account. You can still clean up the financial mess before payments are due.
Credit cards often provide emergency funds for those who carry them. You never know when you may encounter a time-sensitive emergency, like car repairs or medical expenses. Even if you have savings for just such things, it may be more convenient and safer in certain situations to pay for emergencies by credit card and pay the card off afterwards.
There are actually places where debit cards are inconvenient and sometimes even not accepted. One example is rental car establishments. A credit card is usually required in order to rent a car. When a company actually allows you to rent one with a debit card, the company preauthorizes large amounts from your account, essentially freezing those funds.
Rewards plans make using a credit card a good thing. If you are disciplined enough to always pay off your credit card, you should consider choosing a rewards credit card. Look for one with no annual fee and one that offers rewards that appeal to you. With programs that offer cash back, airline credit card rewards, gas rewards, dining rewards, travel credit card rewards and more, it is easy to find one to fit anyone.
Who should not use credit cards?
Despite the fact that there are some excellent reasons to use a credit card, there are also some people who simply should not use a credit card. If you have no reliable income, credit cards may prove to be too much of a temptation for living expenses, as well as for luxuries.
If you have a proven track record of not being able to handle a credit card responsibly, you should just avoid the temptation by not having a credit card. Getting help with your finances from places like Suze Orman’s website and MyMoney.gov, before taking out a credit card is a good idea.
If you decide to get a credit card, even though you are one of the people who should not, try some tricks to help limit your use of your credit card. Establish a credibility partner who is good at handling money and credit, making a rule that you must talk with this person prior to using your credit card. Alternatively, you can put your credit card in a hard to get to place (like frozen in a block of ice) in order to avoid impulse purchases with it.
How do you find a good credit card?
Shopping around for a credit card will ensure that you find a good one. Compare terms and conditions, fees, rewards and the company itself before you commit to one.
Once you have decided on the type of credit card that will be best for you, let credit card chaser find the ones you qualify for to help you with your next credit card choice.
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