Most of the people have heard the stories that come with a credit card. There are stories of individuals who build up huge amount of debt that can take a lifetime to pay off. Or possibly you know an individual who used a credit card, and had their individuality stolen online. While it is rational to be cautious of these incidents, there are several reasons why you should think about using a credit card. When used responsibly, credit cards can be involved to safeguarding financial success. As a financial advisor, Billy Crafton with an expertise in professional athletes has worked with customers in some stratospheric income ranges for quite a few years.
Here are some things to consider when using credit cards:
- While it may not be doable always, it is very much suggested that you compensate the balance of your card each month. Unable to do so can get you into trouble with interest. Interest is calculated on an APR, and credit cards are notorious for having some of the highest APRs of all consumer debt. And unlike other forms of debt, such as student loans and mortgages and, you cannot get a tax deduction from payments on credit card interest. Paying the total balance each month can help you stay away from interest charges.
- All cards are not the same. Different types of cards are there with changeable characteristics for individual requirements. Rewards can come in the form of cash, gift cards, airplane tickets, statement credit, or even whole vacations. Balance-transfer cards enable you to transfer a balance from one card to another card, which usually has a more favorable rate. This can be used to unite credit into one, easy payment, rather than having multiple bills due every month.
- Having a good credit score proves to lenders that you are a low-risk investment, which can help you get a lower interest rate. The length of your credit history, on time payment history and extent of your credit line are just a few factors that make up your credit score.
- It is significant to stay meticulous when monitoring your credit card. Assessing your monthly statements can reveal the warning signs of identity theft. You must also be proactive in checking for unofficial purchases, doubtful lines of credit or other strange activity. If going through your statements each month sounds like a challenging task, consider outsourcing the responsibility to fraud monitoring services. A few credit card companies also offer fraud protection services that can prepare suspicious activity, and can even offer restricted accountability if you fall victim to theft.
These options are appropriate, but in the end, no one is going to care more about your financial and personal well-being than you do. It is in your best interest to play an active role in guarding yourself. No one wants to become one of those credit card shock stories. By acting sensibly and sticking to the points mentioned above you can be on your way to credit success!
Billy Crafton from San Diego says that the saving and investing often seems complex but by adhering to the above-mentioned tips the procedure can become simple.
Billy Crafton 