As credit cards are becoming more and more common nowadays, we’ve come to a point where it’s almost a necessity for everyone in adulthood. Maybe even as soon as they hit 18 for some people, in fact. However, with all of the temptations of shopping and whatnot, credit cards can and should actually be used more wisely as these petite cards can help one build a credit history to help get that home loan you most certainly would need further down the road.
What many card holders don’t know is that the efficient and effective use of credit cards honed through knowledgeable card use would help you save extra costs of payment above and beyond your purchases, thereby adding value to your lifestyle. A credit card isn’t just to help pay expenses when you’re short on liquidity or cash funding in your bank account but there are many other, better and smarter ways to help make your card work for you, and not the other way around.
One such way is that, if up until now you’ve only just had a debit card, you’ll know for sure that the money you spend is only really withdrawn directly from your bank account and if by some form of circumstance you don’t have the money in it, it basically turns into a useless lump you can’t pay anything with. This is the first advantage credit cards have against them.
Secondly, using only a debit card makes you very susceptible to hackers. You wouldn’t want just anyone cracking all your bank information without you knowing until it’s too late. This is why if you don’t use a credit card, you may very well do yourself more harm than good in the long run.
Credit cards also provide benefits that a debit card does not. Certain perks such as bank-specific payment & credit build-up, free access to airport lounge and many many discounts. They are also the most advisable type of card to use for transactions with high risk factors, like online shopping for example. In a nutshell, it’s not rocket science to understand that holding a credit card is not as bad as you once thought, as long as you make regular monthly payments (don’t miss a single one, actually) and become more aware of how to properly use the card without all the bad habits.
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