Having A Credit Card Can Help You
The first thing that comes to our mind hearing credit card is that means having a lot of debt. But it is not always true. Credit cards can help you if used in a correct fashion. Here are a few reasons you should consider having a credit card.
1) Can help your credit score: A credit card can help to build a strong credit score if you are regular with paying your credit balance. You should keep the credit card open if you have a good payment history. Using your credit card for smaller amounts and repaying them back fast is a great method to build your credit history. This credit history can help its users to save thousands of dollars when you apply for other loans. Creditors often look for your ability to repay their amount and credit card is the best to show them that you can manage the repayments. The creditors may apply higher interest rates if you do not have a credit history.
2) You have the card for a long time: The credit score considers the duration of your credit history. If you are using a credit card for a long duration it can help to keep your credit score higher. If you choose to close your card for another with lower interest rate or annual fee think carefully as you may lose all your credit history along with the card.
3) If you have only one card: Closing your only credit card may not be a wise decision. If you do not have many credit cards and choose to rely on only one it is wise to keep that card active.
4) Repayment: If you are closing the credit card because it is difficult to repay the credit balance, think of other ways to repay the balance instead of closing the credit card. You can choose to earn a little extra from another source of income like trading. There are many automated trading robot in the market like the Ethereum Code that makes the trading an easy way to earn good returns.
5) Emergency funds: Credit card can be very useful at times when you do not have enough cash on your hands. In case of emergency, money should be the last thing on your money. Using a credit card instead of opting for expensive payday loans is the best choice to make. Credit cards often come with interest rates of 15% which is much better compared to the high-interest rates for payday loans.