I've been using credit cards for five years now and let me tell you, it is awesome to be able to monitor where your money goes and also get something out of spending your hard earned dough.
For many years, I was under the impression that credit cards are evil, they will make users become slaves of the little plastic card. People who use credit cards will eventually end up in debt because of the convenience that the credit cards provide. That impression is WRONG, DEAD WRONG.
The Credit Card doesn't have the mind to control people to go and spend their money. It doesn't have a mouth to go "hey buy that thing, it looks kind of nice and it doesn't cost that much either." We have to understand that we are the ones in control, we are the ones that decide to use the credit cards or not, and until we can grasp that concept, credit cards can be quite a harmful device other wise, welcome to the fast lane of credit building, points - rewards - money earning, special services extravaganza.
1. Credit Building
Let's face it, credit is an important aspect of life. Pretty much everything that one does these day has a pretty good chance relate to one's credit. Buy a car, you need credit; buy a house, you need credit; getting a loan, you need credit; even when one is getting a job, the employee might even look at potential employee's credit history. So why not building yourself not just a good but impressive credit history, this would give you an edge over more than 40% of the country. I'm not kidding, people who has better credit score would get better rate, better term and condition and better treatment for all of their financial actions.
2. Points - Rewards - Money Earnings - Special Services
Many people use their credit cards with monthly fees and no reward programs whatsoever. If it works for them, great !!! But for me, I like to spend my money without any kind of extra fees and on top of that getting rewards for spending my money. There are all kinds of credit cards out there that if one plays his/her cards right, he/she can obtain so much fun and enjoyment out of using the plastic card. Recently I just got a ticket for an oversee trip that worth 1600 $ USD for .... ZERO dollar. All i have to do is accumulate my points and then I have a ticket ready for me.
* ACTION PLAN
So if you think you are ready to handle the responsibility of the credit card - Jump In, the Water is Great !!!
1. If you don't have a credit card, go get one, remember don't get the one with monthly fee, that is just not cool. Sometime it's hard to get a good credit card when you don't have such good credit or no credit at all, what you can do is getting a credit card issues by your bank or your credit union. They can get you one with small amount of limit. Eventually you can get your credit higher and obtain a better credit card.
2. IF you have a kid get him/her a credit card too - but don't give it to him/her - use it once in a while and pay it. So you are building a credit history for your kid so when he/she goes to school, he/she can get a very good rate because he/she already had a good credit history.
3. Do some research on what kind of rewards you like (points, money...) and get the right cards. I will cover more on that on the next post for a better details
Till next time, Get Rich and Stay Wealthy (C)
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