Excellent Reasons to Have and Use a Credit Card
When it comes to credit cards , you may have heard story after story about credit card debt and what credit cards can do to your credit score. In reality, credit cards are not all bad news. There are some great reasons to have a credit card and even better reasons to use it. If you’ve been considering applying for a credit card, consider these benefits of having plastic in your pocket.
It Can Improve Your Credit
Yes, credit cards can improve your credit score . It all comes down to using them responsibly. A big part of your credit score is your credit-to-debt ratio. This figure is the amount of credit you have available to use versus the amount of credit you are currently using. The more credit you have in your name, the better your credit score will be. It’s true that having a lot of credit and using it all will drag down your score, but you can open a credit card, use it sparingly, pay off your bill each month, and reap the rewards.
You Get Bonuses
When you need to make purchases, why not get rewarded for doing so? Many credit cards come with reward programs, from cashback bonuses on purchases to airline points you can use to buy tickets. If you make a purchase with your credit card and then pay it off right away, you won’t pay any more than if you had used your debit card, but you’ll get a little more bang for your buck.
Some Purchases Require Credit Cards
Even though your debit card may look like a credit card, it doesn’t always act like one. Rental car companies and hotels in particular require credit cards. In some cases, these companies will accept your debit card, but they may pre-authorize your account for hundreds of dollars to be sure the money is there to cover any potential damage to the car or room. That can put a big dent in your vacation spending money.
GCS Credit Union can help you find a credit card with a great interest rate and explain how to use it responsibly. We also offer debit cards, auto financing, and much more. Call our O’Fallon credit union today at (618) 797-7993 for more information.