Choose a credit card that offers monthly credit reporting to establish or build your credit history. These cards are not recommended for people that already have great credit.
If you don’t already hold a high quality credit card, there may come a time when you want to learn more about the benefits of holding and using one.
Not all people are cut out to carry a credit card. If you don’t trust yourself to spend responsibly, it is best to forget about this for the time being. In this case, a credit card could cause you more harm than good.
Many people get credit card invitations through direct mail. These offers may give you an idea of where you stand, and for which type of card you are likely to qualify for.
Of course, there are benefits of a credit card. Here are three to become familiar with:
1. Easier to Track Expenses
As you know, tracking expenses is a big part of being responsible. You will do this for many reasons, including your budget and tax purposes if you also own a small business. When you make every purchase with your credit card, it is simple to stay organized.
2. Earn Points
Why not apply for a credit card with a rewards program? This allows you to earn points for every dollar you spend. Once you have enough, they can be redeemed for everything from airline tickets to cash and much more.
Tip: there are many rewards cards out there, so compare a minimum of three before making a decision on which one to apply for.
3. Good for Emergency Use
You never know when you could be faced with an emergency. If this happens, you don’t want to find yourself searching for cash. Instead, you can use your credit card to buy or pay for what you need.
Now that you understand some of the many benefits associated with a credit card, there is one question left to answer: does it make sense to apply for a card in the near future?