The subject of credit cards remains the most controversial conversation about consumerism. Yet despite their contentious history, the benefits outweigh the cons.
The essential advantages of using credit cards lead the many reasons why you need one.
By the end of the first quarter of 2018, 364 million open credit accounts were active. That means the average American wallet contained at least one to two credit cards.
The acquisition of products and services rely on credit. And credit cards lead the charge among the interests of consumers.
If you’re struggling with the idea of obtaining a credit card, keep reading. We give the yes’ to the question “do you need a credit card” right here.
1. Do You Need a Credit Card to Build Credit?
Credit establishes credit. Odd, but true. The most beneficial way to initiate credit on a credit report is by opening a credit card.
Credit cards help you build a good credit report, which will help prevent you from having to take out bad credit loans in the future.
Credit reporting companies like Equifax and Experian look for positive on-time payments. Doing so helps you construct a favorable score. Excellent credit leads to lower rates on mortgages, personal loans, and insurance.
If you’re nervous about getting started with a credit card, start with a secured card. Putting up a deposit motivates consumers to pay their bills on time and may work for you.
2. Safeguard Your Green
If you misplace your purse or wallet, all your hard-earned cash is up for grabs. And let’s face it, we don’t live in the most honest society. So, you can count it a loss if billfold gets stolen.
Credit cards help you safeguard your green.
Thieves can’t spend a credit card as fast as they can cash. With the recent invention of the chip, swiping a card anywhere isn’t as easy as it used to be. Plus, all it takes is one call to your financial institution and all your cards can get shut down right away.
Cash doesn’t come with many perks, except at yard sales and flea markets. Credit cards open the door to incentives and benefits that cash can’t.
Get a card for consumer advantages.
If you like to travel or earn money back for using credit, a credit card is a yes for you.
4. Insurance and Assurance
Competitive credit card issuers offer the assurance of purchase protection. No need to worry about certain valuables you spend a lot of money on.
If an item you charge gets stolen or lost within a certain time, you get the money back. Banks allow anywhere between 90 to 120 days. Check the stipulations that come with the card.
Get a Credit Card
Do you need a credit card? When it comes to peace of mind, the answer is a resounding yes.
Use a credit card to establish credit and to protect your pocket cash. Or, put it to good use for the perks. Cash rewards are always a good payback.
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