A Credit Card will give you and your family the money they need. Let’s see how my economic capacity improves a Credit Card.
Having your emergency fund in cash in a savings account is a much better idea, but if you do not have it available, a Credit Card may be one of the best ways you can pay the bills that appear.
If something broke or an emergency arose, it can be difficult to pay those bills, but that’s where your Credit Card will go. What can benefit you and improve your economic ability to have a Credit Card:
- Create credit history: Charging small amounts and paying them is an excellent way to establish a credit history.
Without a credit history, it can be harder to get loans or even get a job
If you can secure a loan without any credit history, your loan rate may be higher as a result.
Having a good credit history can help you save thousands of dollars on all the important loans in your life.
For example, when applying for a mortgage loan, the difference between an applicant with a good credit history and a negative history could be thousands of dollars. Having a Credit Card and making timely payments is one of the easiest ways to build your credit history.
- Source of emergency funds: I am referring to a real emergency.
A real emergency fund is always the best, but not everyone has $ 1000 in cash to buy emergency air tickets, repair cars, face a natural disaster, etc.
Some payday loans have interest rates close to 1000% if they are left for a whole year does that improve your economic capacity? Not really.
- Rewards: Many Credit Cards offer rewards that include cash back, airline miles, discounts, refunds, gift cards and many others.
Most of these rewards are designed to make people use the cards or spend more than they would otherwise, but if they use them properly, the reward points can make a lot of money.
Some Credit Cards offer a registration bonus of several hundred dollars, just to open an account and meet a minimum spending requirement.
- Comfort: Some people do not like to carry large amounts of cash with them. If they lose it, it goes away. If it is stolen, it goes away. Credit Cards are small, practical and have better protections for consumers.
Credit cards also improve your economic capacity because they are the most convenient means of using to buy things online or to buy large items in dollars.
Another, the convenience is to travel. If you know you will be on a cruise next week and if you use the Credit Cards, you will not need to exchange the same amount of money.
Some Credit Cards do not even charge a foreign transaction fee. This also improves our reach or purchasing power during the trip. taking into account that if we have less cash in our pocket we will be more cautious in what we spend.
- Car rental: Some car rental agencies will not allow you to rent a car if you do not have a credit card.
Some may allow you to rent a car with a debit card, but they can keep a substantial amount of money in your account until you return the car. You will not be able to use those funds during that time.
Many Credit Cards also provide additional liability insurance when you rent a car. Debit cards? Not that much.
- Extended warranties: Many credit card companies provide extended warranties on the items you purchase with your card. In some cases, the manufacturer’s guarantees are doubled.
- Short Term Loan: Credit Cards generally have a grace period, after which the payment is due. This can last several weeks, which allows you to earn interest on the purchases you have already made.
Credit Cards offer numerous benefits , but it is important to use them wisely. The best way to guarantee that your Credit Card helps you, instead of hurting you, is to pay your bill on time and in full every month.
If you can not make a payment, call your creditor and explain the situation: providers will sometimes waive delinquent charges in extenuating circumstances.
Control your debt by keeping your balance below 30 percent of your available credit
You should routinely check your interest rate against the competition to see if you can get a lower rate elsewhere.
Small cost reduction measures can be added quickly to save you a lot of money
Finally, keep abreast of the activity of your Credit Card. Most lenders offer online portals to control spending activity in real time. In addition to keeping your expenses under control, this frequent attention will help you detect any case of fraud.
A well-managed Credit Card will make your economic capacity a more bearable path if you know how and when to use it. Conclusion:
Pay on time, know all the necessary processes and come out victorious with its proper use. The economic capacity can always be seen well backed by a Credit Card, this is a leverage that in times where we have no solution can give us an opportunity.
Not only will it save you from an emergency the fact of having a Credit Card, you can also have that trip you dreamed of so much, that article that you could buy only after saving all year.
If you pay on time and understand it financially, you have all the ground gained to improve your economic capacity with the use of a Credit Card, since it can positively influence this factor the credit rating and paying all your bills on time as agreed each month can affect prudently the credit scores and limits of the same.