When seeking out the best credit cards for beginners, there are a host of reasons for doing so. Read on for some beginner tips and reasons for seeking out credit.
You know, when beginning to build your credit history, it may be advisable to use this thing often from time to time. This can show responsibility in paying on time and makes getting future credit offers more easy.
There are several reasons to have a credit card.
- Credit vs. Debit card safety.
- Digital purchases of course.
- Support against budgeting trouble.
- Take advantage of card bonus offers.
- Loyalty point cards for different stores.
- Balance transfer credit cards.
- House repairs or vacation, thereby getting bonus points.
- Business fund that can be paid back quickly afterward.
- Family emergency of some kind.
Credit beats debit. The debit card comes from cash on hand. Why do this when one can have money from others? Of course, the money needs to be paid back.
Credit takes precedence from the facts involving awards, bonus points, and extreme spending. Just please make sure you’re in a position to pay back most if not all of the amount.
To sum up things for the normal individual, times can be tough. Sometimes credit may be needed. So it’s best to have at least one card.
The secured credit card. The following advice is applicable both for the young and also someone’s entry into the arena of credit itself.
For the beginner just seeking out some credit card acceptance, the secured credit card choice is a great way. Get some work and save $100 or more. Then ask for a secured card from an issuer. The money from the card will be your own savings.
You’ll build your initial credit history. The future advantages of getting a nice start are numerous. So if this seems unpleasant or difficult, just keep that fact in mind.
As your credit history builds up in a short period, this becomes helpful when applying for “real” credit cards, or money on loan.
The 9 Reasons To Have A Credit Card
1. Safety Of Credit
The normal credit card begins by taking a huge advantage over the normal debit card. Fraud protection is in place for many, if not most or all credit cards. Meanwhile, the normal debit card may be disadvantaged due to no safety against fraud. You may want to check with your debit card issuer or look into its terms.
If the debit number is somehow stolen and used, the processes from the bank may work very slowly or not so much whatsoever. Bill payments, especially automatic, may be missed or cause an account to fall below the zero threshold. Clearly things up can get messy or involved.
The better option is usually to give the credit payment details to most places. With normal fraud protection in place, things are much easier to clear up vs. the debit card. Resolving things with the credit issuer can work out more quickly. It just does for whatever reason.
Another tip. Buying something that turns out bad can get the refund more easily from the credit card issuer, than from dealing with your bank. Or secondly, trying to reverse the spending of one’s own money that props up the debit card itself.
If expenses are large, credit problems work out all the easier. Involved difficulties can save so much money. If some big cost company won’t accept credit, it may help to hold off and search for another similar one that does.
Spending days or more working with your bank, over paying out from your normal money in the bank, could turn into a real headache. Avoid this if possible.
Think of the credit card safety issue as being like insurance. This may help to have the greater inclination to use this kind over normal checks or the debit card.
Like health or automobile insurance, having credit “insurance” can save you some countless amount against great charges.
So buy things on credit for the safety issue alone.
2. Digital Purchases Convenient
Kind of tough to pay with wallet money or checks online. That would be a downright annoyance. Plastic cards alleviate this concern outright.
Since they have fraud safeguards in place, if an online situation turns bad, the credit company can help reverse charges.
Second, if one is concerned over the theft of the number itself, the card can be cancelled later when trouble arises. No problem.
3. Budget Trouble
Budget. Sometimes an individual may not be able to very easily. Expenses creep up, work is hard to find, whatever the reason.
Don’t exceed your normal bank account amount. The overdraft charges can be too much for the non-rich. A needless charge of $25 or $35 is quite ridiculous.
The credit card problem can be quite less than worrying over whether one has overspent money in a normal account.
4. Card Bonus Offerings
The bonus offers come up front. Some cards will give $500, $1000 or another amount, if spending a certain amount within the few initial months of joining.
Tip. Have an amount saved up that matches the spending spree planned on. If you must spend $1,000 in a month to get a bonus offer completed, have that amount saved. Pay it back right after.
You don’t want to deal with months of interest rate problems and trouble getting into more debt than needed, for the purpose of getting a free bundle of dollars.
It may work out in the positive or negative for your situation however. Work the math to be sure, before planning a (required) spending spree. But it’s best to have some money saved to pay the card back right after the event.
5. Store Card Loyalty Programs
If your credit score and history are good enough, consider getting multiple store cards, hotel cards, retailer cards, you name it.
Frequent places of shopping (already), can bring some small extra incentives for shopping in these locations. These store credit cards can bring even more reward points.
Know the difference of points when comparing the store card vs. the credit card. One may actually net better rewards.
6. Balance Transfer Credit Cards
Move debt that accrues interest over to a credit card that offers 12 months or more of no interest charges. One caveat (caution) is that you need to look at terms. Some of these state that the full amount on the offer card needs to be paid, or interest will be charged on the full amount transferred after the several-month grace period.
This kind of offer can really help consolidate debt. Sometimes even if the interest needs to be paid fully, one can still save if the offering is at a lower interest rate than the card or loan to be transferred. Just know the terms.
7. Big Repairs Or Vacation
Having a house can be something else. And then there’s the work involved! But spending on credit guards against fraudulent or mediocre repair investments. Be sure to not pay money out of wallet directly. Be smart.
If having money for big house repairs or do-overs, spend on credit instead. Rack up all the points to be turned into money or gift cards. Then pay back the card before the monthly period rolls over, avoiding the entire interest charge.
8. Personal Business Funding
Having a business can definitely be expensive at times. You’ll want to make sure to pay back these expenses quickly, since they tend to run up some.
Yes, one can secure business funding in some other way. But if there are no other options, this may be needed.
Interest rates are higher with credit cards than business loans. That’s why it’s important to pay back quickly when possible.
9. Some Family Emergency
There’s no question that having a backup for family trouble can be appreciated. When there’s nowhere else to turn, credit can be a lifesaver in difficult circumstances.
This is a definite reason to acquire credit, when money is tight and there’s not a lot to be found. It’s like having a life raft if ever needed vs. the possible storm of life.
Finally, thanks for reading!
Leave a Reply