You don’t have to look hard to find horror stories about people who got into financial trouble because of poor credit card management. However, a credit card can be a useful financial tool.  Sometimes it can be a smart decision in your situation. Just because credit cards can be abused, doesn’t mean that they should never be used by financially savvy people.

Some things in life are difficult to buy with cash. Cars can be one difficulty. Buying a home is a major one. Saving up hundreds of thousands of dollars just isn’t realistic for most people. When it comes time to use credit in the form of an auto loan or mortgage, your credit score will determine where and how you can borrow. Opening a credit card will often improve your credit score. Not only will you be able to prove that you can make on-time payments, but you will also increase your amount of available credit.

Of course, people who already have a lot of credit cards, and people who have trouble making payments on them, should not open a new account. This can lead to credit troubles, and you’ll need help repairing your credit. But for most people, opening a credit card account will allow you to establish a line of credit, and could provide some purchasing advantages. Some cards offer cash back on purchases, which can add up to a nice windfall over the course of a year. Other cards offer rewards that can be redeemed for free travel or merchandise. In addition, credit cards make online payments easier, which is important in today’s increasingly connected world.

Opening a credit card can also be a smart way to protect your money. Instead of carrying cash or a checkbook that can be lost or stolen, a credit card gives you purchasing power without the danger of misplacing your cash. If your card is ever lost or stolen, you can deactivate it right away.

It can be smart to open a card as long as you use good credit card management, and it fits into your current financial situation. If you find it difficult to manage your accounts and payments, get hold of us at Key Credit Repair and schedule your Free Credit Repair Consultation.





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