What You Should to Know About Credit Card

credit card

The idea of having a credit card may be intimidating for those who were growing up during the times of the recent recession. But this is the world we live in today, where every person has to master this system by learning all about good credit and how to become rich tips.

Using credit cards is probably the best way to make good credit and it can often result in travel rewards and cash back.

According to the recent survey, approximately 200 million US citizens use credit cards, and some people even have more than two.

However, less than half of people in the US pay the bills in full on a monthly basis and it’s scary to say how much credit card debt they have in total.

The truth is that if you learn simple strategies on how to manage and use credit cards effectively, this information will help you in the future. More than that, if you spend the money responsibly, you will be able to get additional perks and benefits along the way. In this article, you will find everything you need to know.

Building Your Financial Future  

Are you willing to make big purchases someday? Do you want to buy a house in the future? Then, getting credit cards is the first and the most important way out, even if you are frightened to get one.

A credit card can be very useful in maintaining and building an excellent credit score without any serious effort. And, as you know, a credit score is significant as it affects getting a car, renting an apartment and purchasing car insurance.

Personal finance experts suggest starting with one credit card, and once you start to feel comfortable with it, you may want to get one more just to feel safe.

There may be various uncomfortable situations when having a second credit card can actually save your day. For instance, when one card is shut down for fraud while you are traveling and you can’t wait for a new one.

What Card Protects Better – Debit Card or Credit Card  

In fact, a credit card can protect you much better than a debit card as it has lots of protection against frauds and identity theft. For instance, contesting the charges in the case of credit card theft can save you from paying for the thief’s shopping spree.

The main disadvantage of a debit card, in this case, is that once a robber makes charges with your debit card, it will be twice as hard to get the money back in your account as it’s already gone.

Do You Really Need to Spend a Lot to Build Credit?  

That’s a widespread myth that has nothing to do with reality as well as these myths. You don’t have to spend much you don’t have to carry a balance on a monthly basis if you want to build credit. Don’t be scared of credit because you may put just a little money on the credit card and it will help your score already.

The only requirement is to pay on time and in full from month to month. So, you can get a credit card, add Netflix subscription to it, and remember to set the autopay option from your checking account on in order not to forget about monthly payments.

That’s all you have to do to start building credit, and your physical card can be safely stored somewhere in a drawer. Later on, provided that you use the card regularly and repay every month in full, you will thank yourself and see the results once you decide to purchase a house or a car.

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