4 Reasons Why You NEED a Credit Card
Wednesday, December 4, 2013
There has been a lot of negativity about credit cards lately. As long as you pay off your credits cards monthly and keep away from negative balances they can be an awesome tool and can really help you financially.
My husband and I love to use credit cards to our advantage. We usually have between 5-8 credit cards at a time and have never run into any trouble. Below are some of the reasons why I am a huge fan of credit cards.
It is super important to build your credit score and your credit history. One of the main advantages of building your credit score is to qualify for lower interest rates on home mortgages and even car loans. The higher your credit score the lower your payment is going to be.
Staying off the grid and using a cash system or just debit cards might seem like a great idea until you have to qualify for a loan. You will probably find yourself in a bind.
Credit cards are so much more secure. Many credit cards provide lost luggage insurance, trip cancellation insurance, and more. Also, incase you experience any sort of credit card fraud many credit card companies only hold you responsible for the first $50 lost. Credit card companies are also great about notifying you if you have any suspicious purchases.
It is also great to have the peace of mind that if you get stuck somewhere or even if you miss your flight you can easily pay for a hotel room or rental car with your credit card.
Credit card companies are also great with warranties. When I was engaged I bought a wedding dress with my credit card and then when I took it home I noticed that it had stains all over it. I went to return it but the store said they had a no return policy. I returned the dress and the credit card company reimbursed me for the dress.
This is one of my favorite aspects of credit cards. I love a good deal. Many airline credit cards offer free roundtrip tickets after signing up for their credit card. Last year my husband and I signed up for the Southwest credit card and got 2 round trip tickets after paying the $79 annual fee. We ended up getting two tickets from Salt Lake City to Boston for just $79.
Many stores also have reward points. We have an Amazon credit card and make many of our purchases using that. The points add up and we have been able to get a lot of our purchases from Amazon for free.
Many bank cards have reward points as well. We have a Chase Freedom cards and the rewards change monthly. We get cash back on groceries, gas, restaurants, and more.
It is so easy to stay organized using credit cards. Gone are the days of writing down purchases on paper, entering them into an excel spreadsheet, or into your checkbook. We use Mint.com and we can see all of our credit card purchases and multiple bank accounts all in one website. This makes it super quick and easy to pay off all your cards without forgetting anything.
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Credit cards don't have to equal debt! As long as you are smart with your finances you can end up saving yourself a lot of time money by using credit cards. Just remember not to spend more than you have and treat your credit card just like a debit card.
Written by Kelsey Eaton