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Archive for March, 2013

Who Wants Credit?

Big WheelBeware of Danger.

 I was a kid my brother and I used to ride our big wheels up and down the driveway and sometimes beyond,encroaching the street and thereby terrorizing the neighbors.  You see, before we had moved in, another child, while riding his big wheel, had been hit by a car.   The big wheel, being so low to the ground, was considered by the neighbors to be too dangerous for children to ride.

Fortunately, my brother and I had nothing but fast times and race track memories of our Big Wheel rides.

Even so, I know several people who still believe Big Wheels are too dangerous.

There are also people who think carrying credit cards to be too dangerous.

I understand credit cards may cause problems, but I think they are something we all should be able to benefit from.  I have used a credit card since college and I do not have one single regret.  But who should use credit cards comes down to simple decisions:

Why you would want a credit card

credit card

  • Convenience – No need to carry cash – or the risk of losing it.
  • Peace of Mind – if you loose it, it’s simple to replace
  • Tracking you expenses – Monthly statements itemize your expenses so you can see where your money goes
  • Consumer Protection – If you don’t receive your item you ordered or the merchant won’t honor a return, your credit card issuer is usually the best fix for your problem
  • Insurance Benefits – Many cards offer product insurance, and many offer free car rental insurance
  • Extended Warranties – Some cards offer one on certain items
  • Rewards – what do you want?  Mileage, free gas, cash back – many thing can be rewarded to you for free by simply using a credit card for purchases.
  • Credit History – Nothing builds credit like properly managing a revolving  credit account.  Good credit history can save tens of thousands of dollars over the life of a auto loan, maybe more on a mortgage. Sometimes even employment can depend upon it

Who should not want a credit card?

  • Financially undisciplined people – if you do not have control of your spending, you should probably not apply for any type of financing.
  • You are unwilling to pay a bill completely every month – if you can’t make a purchase, wait until the monthly statement arrives, and then pay for your item, you would loose out onmost of the rewards and good credit history benefits.
  • You’re personally irresponsible – If you do not honor the terms you agree to when you sign contracts, or you are unwilling to read contract agreements before signing them, you should only pay with cash.

grow a credit score

 

Credit cards have been used poorly by some people and gotten them into trouble, but that is no reason for responsible people to miss out on the benefits that come with managing a credit card responsibly; and, properly managing a revolving credit account will build your credit faster than anything else you can do.

 

Want more information regarding the best cards available?  Call me at 918-949-7248 or email at jregur@midtownmtg.net.

 

Posted in: Credit

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