5 good reasons to get a credit card

If you’re lucky enough to be in a reasonably healthy financial situation you may wonder why you’d even need to use a credit card. However, even the wealthiest individuals make use of them, so there must be some benefits. Here are a few of our favourite reasons to consider them:

Improve your credit score

Lenders like to see evidence you’re a responsible borrower and a worthwhile risk before giving you access to credit. While you may not need this immediately, it’s always worth having one eye on the future. For example, a good credit score will boost your chances of being approved for a mortgage. A great way to do this is to have a track record of regularly meeting repayments – no matter how small they may seem – on time.

Extra protection

If you’ve ever bought goods online that never turned up or were faulty you’ll know how frustrating the experience can be, particularly if the retailer isn’t keen on issuing a refund. With a credit card this situation can typically be resolved with a quick telephone call. Compare credit cards to find out what protection they provide, as certain products also offer additional warranties for purchases such as electronic goods.

Accepted worldwide

Certain companies may not accept payment by debit card when you’re travelling overseas, even if it’s supplied by a major bank. Credit cards are accepted around the globe and prevent you from having to carry large sums of money around with you at any given time, which can prove particularly risky when in unfamiliar surroundings away from home. Of course, this extra security is a bonus wherever you are in the world.

Reap the rewards

It’s not often you get anything more than the goods or services you’ve purchased when you shop, but certain credit cards will reward you for your spending. Perks can vary, but examples include cash back and air miles, meaning you can enjoy something using cash or a debit card alone wouldn’t have provided you with.

Keep track of your expenditure

If you’re looking to stay on top of where your money is being spent the monthly statement from your credit card provider might be a good way to do just that. It will detail where and when you’ve spent, which might help you to form a budget planner.

Avoid the Retail Therapy of Shopping

There are some people that use shopping as a therapy. They feel good by going out to buy things. They feel that the items make them feel happy. They may do this for all sorts of reasons. However, hhere are a lot of reasons why this may not be a good idea. These apply if you do not have much money, storage space or time and regret your purchases afterwards.

Cost

The cost of shopping is probably the main reason why it is not a good idea. There are very few people who can afford to do something like this these days and this is why it can be a big problem for some people. Sadly, there are a lot of people in debt and shopping can cause problems with store cards, credit cards, overdrafts and payday loans. If you can afford to shop then this is not a problem, but by using credit when you shop, you effectively massively increase the cost of the items. If you calculate how much they cost you once you pay off the loans, then you will be shocked at how much things might cost.

Storage

One problem of buying a lot of items is finding somewhere to store them. Houses can be quite small these days and if you are spending money on buying things, then you will not be able to afford to buy a bigger house to store the things that you buy. Consider whether you want a home that is stuffed to the brim with items or whether you would rather have fewer things to organise, clean and tidy away.

Time

Shopping can take a lot of time. You may be better off spending that time doing other things. If you shop because you are bored, then consider whether there are other things you could be doing. You could be working, seeing friends and family or doing volunteer work. There are many other things that you can do which could bring a lot of satisfaction and happiness.

Regret

Some people will look back on purchases with regret. Having regret in your life is not a good thing and moving forward from regret cannot be easy. Think hard before you make any purchases and then you should have no reason to regret them. Also do not be afraid to return items that you decide you do not want when you get them home. Some people even feel the need to lie to their partner about purchases that they have made and this can lead to even further regrets.

Getting out of Debt with Help

I have debt, don’t we all? I assume there are some of my readers out there who have amazing credit and have always done well with budgeting, I am not one of those. I wish I was. I am beginning to be, however, I was not always. When I turned 18 years old credit card companies mailed me credit cards directly in the mail. Just call to activate they said. Literally the cards were ready to be activated in my name, without me ever calling nor applying for them. That doesn’t happen these days it seems, but it did happen to me back then at least 3 times, if not 4 times. Interesting, huh?

money

Well most people would probably cut that card right up and toss it, I felt the need to max it out on clothing as one was for a clothing store and junk such as snacks and gas for the car. I was 18, a high school graduate and totally not thinking clearly, obviously. A few years later I still had not paid off those credit cards, they lingered making my credit not so great for a while until I finally found out about Debt Consolidation Options. There are so many ways to work out debt and get it paid off, thus creating a better credit standing on your credit report.

I chose to go with debt consolidation and paid off all three or four credit cards within just a few years after having them maxed out and being put on my credit report as delinquent.  I did the debt consolidation process with a company that actually spoke to each credit card company on my behalf and worked out a deal to help alleviate this debt while helping it be reported to my credit report as being paid on as agreed or something like that.

If you find yourself in debt for any reasons, I would highly recommend doing what I did way back when; research your options and work with debt consolidation specialists that can help work with you through this process without you getting into any agreements to pay off debt that you may not understand.

Top five ways to improve your bank balance

If you’re knee-deep in debt it can be easy to bury your head in the sand, but this won’t make your problems go away. The only way to improve your finances is to address the situation head on and implement some money-saving strategies – so what should you be doing?

Speak to a financial advisor

Whether you want to consolidate credit cards or improve your credit score, it’s a good idea to talk to a professional. Financial advisors are there to help and can provide you with all the latest information regarding pensions, mortgages, loan repayments and much more. Personal information will be kept strictly confidential, so don’t hesitate to seek advice if you need it.

Pay off your credit cards

Credit cards make it easy to pay for things electronically. They’re a simple and efficient way to spend, but it’s important to use them wisely. Never buy things you can’t afford and always pay off the balance in time to avoid high interest charges. If you have already racked up a sizeable sum, try to pay off more than the minimal fee when you’re billed as this will help you get out of the red quicker.

Reduce your bills

These days, many of us have a mobile phone. If you have a contract agreement, however, you could be paying more than you need to. Call your provider to see how many text and minutes you use and ask if they can lower your tariff. As household bills are another big expense, it’s also worth comparing utility prices and switching companies if necessary.

Check your Direct Debits

Do you know what you’re paying out on a monthly, weekly or annual basis? If you’re not sure, it’s essential to check all Direct Debits. This might sound like an obvious thing to do, but it can be easy to sign up for internet movie rentals, magazine subscriptions and such like only to forget about them. Once you know the score, see if you can reduce you outgoings in any way.

Spend your money wisely

A pound here and a pound there soon add up, so spend your money wisely. Only buy the things you need and look for discounted products online. With the economy in a fragile state, many companies are offering promotions and deals over the internet and you might even find some great value items on the high street. To ensure you’re getting the most for your money, download a price comparison app and do some research before parting with your cash.

Improving your bank balance is easier than you might think, so why not give some of these tips a go?

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