Have you ever wondered if you should keep swiping away on your credit card? Have you thought about what really is credit and when you use it? Well as there are many pros to credit cards, there are many cons as well. What is credit? Credit is the ability of a customer to obtain goods or services before payment, based on the trust that payment will be made in the future. There are many reasons why people would want a credit card. One is being able to get approved. When you start looking for a new car, they can look at your credit score to see if you are eligible for lower payments or no down payment or even having good credit score can help you by possibly paying less for your car insurance. Even when looking for a new home, you can avoid paying …show more content…
If you cannot pay off your balance when you receive your billing statement, you shouldn’t use your card. One example is using credit to pay student loans. Student loans are really to be paid over time. Although there is interest on student loans, they may be cheaper than most credit cards interest rates. Having a visit to the doctor’s office can be expensive and you can feel overwhelmed and sometimes using your card is the best option at that moment. Sometimes having a payment plan works out better and can cost lower. Lastly, most people these days prefer to shop online. If you don’t use a secure website, you are setting yourself for fraud and shouldn’t use your credit card. Your credit card information can get stolen by not being careful online.
As to there being reasons why you shouldn’t use your credit card, there are reasons as to why you can or should. Logical reasons to use your credit card is for monthly bills such as cable or, cell phone bills. This helps you stay on track with your bills and be able to budget. Along with bills, you can pay for your rent in case you are short for any reason or behind in it, you can use this to help you and it can help you build your credit.
There are benefits to having a credit card but always must look out for the small things that can mess up your credit. Credit cards can be tricky if not used the right way. They have their perks to owning but is safe to own only one to begin. Try