We’ve all heard it at some point in time: “use your money wisely”, “be a smart spender”, etc. In 2016, money is synonymous with both cash and credit cards. With cash, you buy something and pay for it and that’s that. With credit cards, how you spend your money goes way beyond the actual transaction. For this reason, it’s important to possess as much wisdom in the ways of using you credit cards to ensure a fantastic financial future. Here’s some more detail as to why:
Re-write History
Keeping control over your credit cards will improve upon credit history. Be ing a wise spender with your credit cards means not making outlandish purchases and sticking to budget to make sure that the bill gets paid on time every month. Credit cards make it easy to track everything you are spending, which is incredibly helpful when trying to keep to a budget and keeping you on a payment schedule. Every month that you pay on time, you will build a positive credit history and show self-control and consistency. This makes you look like a great option for a lender when you start applying for major loans.
Scoring Well = Saving Wealth
A credit score is something so important that U.S. News wrote an article about why a good credit score is more important than good GPA. Yep, it’s a big deal.
Credit cards allow for improvement of credit score as well as credit history. With your established and ever-improving credit history from wise usage of your credit cards, your credit score will improve. Better credit score means paying less; a higher credit score can provide you the opportunity for an improved deal on major life purchases, like a new car or house.
The Power of Being Protected
One of the best, and often looked over, benefits to credit cards is the zero liability factor. This means that, according to the Federal Trade Commission, the maximum amount you would be responsible for paying if your card was stolen would be $50. This fee can even be waived if the card is reported as lost before being used again.
Being wise with your credit cards allows you to obtain more credit cards, and credit cards with enhanced benefits. Therefore, you will be able to keep enjoying the benefits of the Fair Credit Billing Act and never have to worry about paying triple digits for a lost or stolen card. Peace of mind can be priceless.
