Hello, my name is Rhonda. If you have financial goals, this blog can help you achieve them. A few years ago, I realized that I didn't have a good plan for my future and I wondered if my financial needs would be met after I retired from my job. I immediately started planning for my future by speaking with a financial advisor and I learned a wealth of information at our meetings. By following the recommendations of my advisor and by learning everything I could about finances and money, I now feel very secure about my future. If you need financial help for retirement planning, college savings or even for an emergency fund, you can get sound advice by reading my blog. I believe that by following a few basic strategies, everyone can meet their goals and be financially secure.
Credit cards have a bad reputation sometimes because they can get people into financial trouble when the cards are not used responsibly. However, for many people, credit cards make life a lot easier. Even though you may have a prepaid card or a debit card, you may still have difficulty with some transactions unless you have a credit card. Here are some advantages of having a credit card and a few tips for getting one.
Reasons Having A Card Is Important
There are times when a credit card may be necessary, such as when you rent a car. You can often pay for your rental with a debit card, prepaid card, or even cash, but picking up a car could be a different story. When you have a credit established, the car rental place assumes you must be credit worthy. If you're renting a car at an airport and you have a ticket stub to show, you might not run into problems, but when you rent a car locally, a card may be required by some rental agencies, or they may opt to run a credit check instead. By having a credit card for occasions such as this, you can avoid snarls in your plans and embarrassment.
A card can help you with your spending and budget. If you use credit to pay for your groceries, gas, and other expenses during the month, you'll have a record of all your expenses so you can track your budget. Some card companies even categorize your spending for you so you can see at a glance how much you spend each month on gas and other expenses. As long as you pay your card in full each month, you can use your card as a way to monitor your budget.
A credit card can earn perks too. One of the nicest things about using a card is that you can accumulate points for every dollar you spend that you can use to pay toward your bill, get gift cards, turn into air miles, or to use toward shopping online. A card is convenient to use so you don't have to carry cash or write checks, and a card can also be a safety net in case you run into financial problems and need emergency work on your car or medical care.
Tips For Getting A Credit Card
If you don't have credit established, you'll need to look for a card that caters to people with no credit or even with bad credit. You might need a secured card at first that reports to the credit bureaus so you can establish a credit score. Then, you'll want to pay your bills on time so you can show timely payments and a good credit score when you apply for your card. There are many types of credit cards you can get, so look for one that has a low introductory interest rate or one that offers the kind of perks that you'll use and appreciate.
You'll also want to understand how using cards and making payments affects your credit report and score. You can talk to a financial adviser or read financial websites to learn the best ways to use your card so that your credit score continues to climb over time. Things like late payments, using too much of your credit line, or taking out too many cards could lower your score. By using a card wisely, you can establish a good credit history that might pay off by qualifying you for a car loan or mortgage in the future.