Credit Cards: Friends or Foes?
Navigating the financial world can be very difficult, and credit cards are one of the many paths which can seem rocky and unclear. Everyone has heard the horror stories of people going into debt for hundreds of thousands of dollars because of bad spending habits using credit cards. Even with all of the unfortunate circumstances that some people find themselves in, having and using a credit card regularly does not have to be a negative thing.
Why Do I Need a Credit Card?
While it may seem like a smarter idea to simply avoid applying for and using credit cards to make purchases, there are some instances where it is unavoidable. Hotels require a credit card on file to hold a room reservation, and you can’t shop online without one. The key to using a credit card responsibly is to have good spending habits, make payments on your credit card on time, and find a card with a reasonable interest rate.
Good Credit Is Formed by Good Habits
One of the primary advantages to having, using, and making payments on a credit card is its effect on your overall credit history and score. If you are planning on making a major investment one day like a house or vehicle or plan to borrow money for something like home improvements, you will want to ensure that your credit score is as high as possible. Unlike a debit card, your credit card use and payment history is reported to the financial bureaus which monitor your score. Paying your credit bills on time increases your score and demonstrating continued activity with payment will improve that score constantly.
Your credit card statements also provide you with a method of tracking your expenses. Each statement shows you exactly what you’ve been spending and where so that you can make wise decisions concerning your financial future. Best of all, you can track your spending online through White River Credit Union’s HomeTeller as well as the MyCardRules App and Mobile Wallet. This enables you to check it 24 hours per day, so you will never be unsure of your spending habits.
Contact Us Today– We’re here to help!
At White River Credit Union, we want to help you get your finances in order and keep them there. Our credit cards have a variety of advantages from no transaction fees on cash advances and no annual fee to bill payment options (over the phone, in-person, online) and a 25-day grace period on purchases. If you are wondering whether or not a credit card is the right option for you, contact us to schedule a consultation to speak with our credit experts.