Credit cards can help and be life-saving when in difficult situations. There are also other times when those thin pieces of plastic can be useful.
If used responsibly, you can actually benefit from using credit cards. Such as earning free points or products for using the card frequently, helping you to better your money management skills and to save money at certain stores. This only works if you resist the temptation to splurge because of having a credit card. If you try not to carry a balance from one month to another or if you have to carry a balance, just know if it’s a balance that you’re able to pay off in the near future.
Credit cards can help to improve credit score and help with credit building if paid in a timely manner.
Here are a couple of ways that your credit could be effected:
If the credit card is used regularly, the age of the account(s), how many accounts you currently hold or have had in the past, how many times hard credit inquires have been performed for a loan and how many blemishes are on your credit track record could effect your credit score.
Credit Cards can aid you financially in emergency situation. For example, if an emergency fund hasn’t been established or is inadequate for you to use. In most cases they are used to help you if you lost your job, have urgent car or home repairs, or unexpected medical costs.
With credit cards comes electronic banking and therefore records to help track spending. Also, if your card is lost or stolen, it is possible and easier to be alerted and to freeze your account(s) unlike with cash.
