Why do I need a credit card?
Why everyone should have a credit card?
Many people usually ask this question.
Why do we need a credit card if we will get in debt?
Well first off all let me start by writing down all pros and cons for you.
Lets start with pros..
Get a first credit card spend around 25% of the credit limit.
Pay it back for 6 months and it will greatly boost your credit score.
With better credit score you can get even better credit cards like American express or Barclays travel card and get benefits for doing same strategy as you did before.
Also with better credit score you can get less interest on loans.
For example car loan or mortgages so to have better offers make sure to boost your credit score by using 25% rule 🙂
Get rewards like 10% cashback, discounts in stores, travel points for free travel and many more.
The more you use the card the higher chance credit card provider will increase your credit limit but remember never go above 25%.
Or it might be hard to pay it back.
Always try to pay that back within 3-4 weeks time frame.
Some credit cards will give you 0% balance transfers for certain amount of time or give you extra benefits like lounge access in the airport.
Now let’s move to cons..
Well one and only con is that if you Don’t pay it back in time you will have to pay back with interest it might be from 19-250% interest.
Yikes that’s a lot and also it will hurt your credit score a lot.
So be sure to use balance transfers if you have any and if you have one make sure to pay back as soon as you can.
To prevent any late payments that can damage your credit history or prevent getting your credit limit lowered.
Thank you for your attention!