It seems like everyone has at least one credit card these days. Whether you have a credit card issued by your bank, another credit card company, or from a specific store for perks, it is important to consider the “pros and cons” before making the commitment. Simply applying for a credit card can affect your credit history so proceeding with caution is advised when someone offers you the chance.
Read below for the pro/con list relating to using credit cards
—Convenience: You can pretty much use a credit card anywhere you want, including online.
—Discounts: Some credit cards offer incentives and rewards. If you have a credit card open with a specific store, then you will most likely receive some sort of discount or reward based on a points system.
—Build credit history: Stay on top of your monthly payments and build your credit. A good credit score will help you obtain loans with affordable rates.
—Monitor your financing: Credit card companies keep record of your payments so you can monitor your activity.
—Overspending: Sometimes folks with credit cards get the urge to spend more than they have with a credit card. Spending money you don’t have is an easy way to put yourself in debt.
—Interest/Late fees: These unfortunate costs can build up, which can dig you further into debt, which will eventually ruin your credit history.
—Bankruptcy: Credit card debt has been linked to people who have filed for bankruptcy. Although it isn’t a direct correlation, you are more likely to file for bankruptcy if you have a history of being in debt.
—Fraud: Credit card fraud is real and it can happen to anyone with a credit card.
So how do you start off on the right foot with a credit card? The reality is that most adults will have a credit card in their lifetime, as they are extremely common. Avoid those cons by making sure you do the following:
—Review your monthly statements
—Create a monthly budget for yourself
—Don’t spend more than you can afford
—Make sure to pay balance by the end of the month
—Make sure you are purchasing from reliable vendors should you shop online
If you find yourself in a poor credit bind and are in need of a loan, check out Yes 4 Credit Oregon. We specialize in working with folks with poor credit history to get the best financing options.
Call us now at 1-855-YES-4CDT!