Why credit cards are useful
Used responsibly, a credit card can help you build the credit history you need to access financial support, says Rasha Katabi, CEO and founder of Brim Financial. “Whether it’s in a mortgage or a loan or a business loan—whatever it is that you require in terms of financial support to build your business, your life and your wealth—it’s important to have credentials in the world of credit.”
Credit cards can also help you save (and earn) money, especially if you opt for one that offers rewards, points and/or miles in some of the categories in which you spend the most heavily. “Find a credit card that best suits your spending habits and has the best cash back or reward program for your priorities in life,” says Kelan Kline, personal finance expert from The Savvy Couple.
Credit cards can be valuable tools in navigating and managing your finances. Here are a few things to consider before beginning or deepening your credit card journey.
When does getting a credit card make sense?
Without sufficient credit history, lenders will likely see you as a higher risk, and this may result in denial of that loan or mortgage you want. Before deciding on a credit card or being persuaded by a large sign-up bonus, you should be aware of your credit score and financial standing. Using a credit card can be an efficient way to boost your credit score or establish the groundwork for credit history.