Credit cards are typically a topic that people steer away from, retail workers asking you to open one, mail from a million different credit card companies, credit card debt, etc. People are talking about them everywhere, but why? Credit cards can be super helpful if you use them correctly. But they can also really hurt you if you don’t use them correctly.  As long as someone is educated about the pros and cons of getting a credit card, hopefully they’ll put that knowledge to good use and gain an amazing credit score. Speaking of credit scores, that’s one of the first reasons of why you should get a credit card.

Credit Scores

It’s 2019, credit scores are extremely important for anyone who is trying to take the next big step into adulthood. Renting or buying a home, buying a car, and even going to college. Having a good credit scores usually means you’ve used credit cards or taken out loans and have paid them back on time every month (or whenever it’s supposed to be due), so the credit companies acknowledge that you’ve done what you’re supposed to and it raises you credit score, enabling you to have higher credit limits, loans, and lower interest rates. All of these life milestones typically require you to have a good credit score if you’re gonna get lower interest rates on loans. Interest is how much extra you’re paying on top of how much you initially borrowed. Mozo is a great website that can help you calculate your different interest rates with different types of debt calculators.

Low on funds?

Credit cards are also really helpful if you’re low on personal funds. Whether you’ve gone over budget, got less hours at work, or had an unforeseen financial issue, sometimes you need to make a purchase but you realize you don’t have all the money for it. Credit cards loan you a certain amount of money (credit limit) and then you have to pay it back, usually with interest if not paid off in full at the end of the month. So, having that credit card can help you buy a tank of gas, buy groceries, or pay a bill but you just have to make sure that you’ll have the money later that month to pay it all of or you’ll pay interest on however much is left on your credit card bill.

There’s lots of reasons to be careful about having credit cards but they can also be extremely helpful if you find yourself tight on cash. Apply for credit cards with the best reward systems and low interest rates, but be careful and make sure to pay it off at the end of the month!

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