THESE Are the Best Ways to Use Your Credit Card
Credit cards can be a more secure and convenient alternative to using debit or cash to make purchases. They can help you build your credit history and manage your finances. Depending on the credit card you get, if the card is stolen or lost, it can be replaced easily and may offer purchase and fraud protection.
Listed below are some of the best ways to use a credit card:
To Build Credit
If you want to improve a less-than-stellar credit history or are new to using a credit card, this may be a good step for you to take. You can either apply for a secured or unsecured credit card.
Secured cards require you to make a deposit, which is usually refundable, will be used as collateral, and is generally equal to your credit limit. Unsecured cards, on the other hand, are granted on the basis of your creditworthiness and don’t require collateral. But when compared to unsecured credit cards, secured cards have less-stringent application requirements.
When you make your payments in full and on time, it will establish a pattern of responsible borrowing and can boost your credit, while late payments can have a negative impact on your credit.
To Earn Rewards
By using credit cards, you can earn cashback or rewards on purchases that you’d be making anyway. There are several reward cards to choose from, some of which include airline, travel, cashback, and hotel cards. Based on your spending habits, lifestyle, and the kind of rewards you want to earn, you will be able to choose the right card for you.
To Pay Down Debt
If you use a credit card to make purchases, it may seem counterintuitive since this is one of the popular ways that people end up accumulating debt. However, when used strategically (for instance, to take advantage of a 0% APR for balance transfer offers), a credit card may actually be able to help clear your debt.
Several credit cards offer balance transfers with low or no interest, only for an introductory period. You can save yourself a bundle on interest charges if you transfer high-interest debt and pay it off before the promotional period ends.
