Thursday, September 21, 2017

# finance # using a credit card

When Is It Ok To Use A Credit Card?



People are often wary of credit cards, automatically associating them with debt and irresponsible spending. However, when used responsibly, a credit card can actually be a good thing for your finances - helping you to manage your money better and take advantage of the different offers available to you. So when is it ok to use a credit card? Read on for some great advice on when using a credit card could work in your favor.

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To improve your credit rating

Using a credit card could help you improve your credit score. By spending little and paying it off in full each month, you could help to bring your credit score up. If you’re looking to make a big financial decision in the future, such as buying a house or starting a business - this is a great way to start getting yourself ready. It’s a good idea to check out your current credit score to get a good overview of your financial situation and find ways you can improve it. You might find that your credit score reveals some things about your finances that you weren’t aware of, helping you to rectify any negative elements before you make any significant applications.

When shopping online

Online shopping has really taken off, with nearly 80% of people in the US shopping online. Shopping online offers variety, convenience, and better deals - but it also has its downsides. The risk of identity fraud online is increasing, while there is also the risk of your goods becoming lost or stolen before they even get to you. Credit card companies will not only be on the look-out for fraudulent behavior, but they will also protect your goods. Not everyone realizes that credit card companies often offer extended warranties, so if you’ve bought electronic goods that become defective after the manufacturer’s warranty - you could still be in with a chance of a replacement.

To make larger purchases more manageable

Credit cards allow you to pay for something over time, breaking up large purchases into more manageable monthly amounts. This is great if you’re faced with emergency car repairs or home improvement costs, and could help keep you out of financial difficulty. However, this is only really an advisable option if you have a 0% interest rate on purchases for a certain amount of time. It’s worth taking a look at reviews.creditcard to see what sort of cards are available before you make any applications. If you don’t think you’ll be able to pay off the balance of your purchase before the 0% interest rate runs out, you might want to consider other options to stop you paying over the odds.

If you’re going to take out a credit card, then it makes sense to set a budget for yourself to help you manage the repayments. Provided you can use your card wisely and keep within a reasonable limit; there’s no reason why it can’t help you improve your financial situation and help you make some wise purchase decisions.



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