Most of the financial gurus seem to be 100% against credit cards. However, there are a few times when taking advantage of those credit card offers you receive in the mail makes sense. Credit cards can be a useful way to rebuild your credit or to establish new credit. Many credit card companies include benefits that might have a positive impact on your current situation.
Discover the reasons why you should take advantage of credit card offers, from not having any credit to poor credit score and more. See what's helping people take advantage of credit cards with greater ease and how you can benefit from those same advantages. Not all of those unsolicited offers are worthy of an automatic trip to the garbage can. Take a look at these 6 reasons to take advantage of credit card offers.
1You Don't Have Any Credit
Consider a credit card if you don't have any credit and need to establish a credit history. Perhaps you're in college and would like to begin the process of establishing a positive credit history. You probably aren't in the position to purchase a car or home with a loan, but you're inundated with credit card offers every day. In this instance, getting a credit card is a great idea. Just be sure to use it responsibly and pay off your balance each month.
2You Need A Widely-Accepted Credit Card
Some credit cards aren't widely accepted, like American Express or some of the more obscure cards. It makes sense to have a MasterCard or Visa as long as you're getting a card with good terms. These are accepted anywhere credit cards are accepted.
3You Have A Poor Credit Score
Consider a credit card if you have a low credit score and if you'd like to improve it. Credit cards are an effective way to raise your credit score. Your score will improve when you have more credit available to you. Remember that one portion of your credit score is the percentage of your total credit that's currently being utilized. Having more credit will lower this factor.
Using a credit card responsibly will also improve your credit score. If your credit is quite poor, a secured credit card is an option. Your available credit will be comparable to the security deposit you provide.
4You're Paying High-Interest Rate
There's no good reason to pay more interest than necessary if you have other options available to you. Search around for the best rate without ignoring the other terms. Ideally, you'd never carry a balance, and the interest rate would be irrelevant. However, do note that everyone carries a balance from time to time.
5You Can Transfer An Existing Balance
Transferring an existing credit card balance is too good to pass up. It's not uncommon to receive offers to transfer your existing balances at 0% interest for up to 18+ months. If you currently have a high balance at a high rate of interest, this can be a great move. A 0% balance transfer can be a huge financial coup.
Read the fine print. A single late payment will result in all the accumulated interest from day one being added to your account. Remember that the interest is accumulating. Whether or not you get stuck paying that interest depends on your ability to comply with the agreement.
6You Are Offered Nice Rewards
If you use a credit card regularly, it makes sense to find one with a rewards program that benefits you. Some cards offer points that can be redeemed for a variety of things. Some cards give gift cards, airline tickets, or even cash.
Getting a new credit card isn't always a mistake. Ask yourself whether a new credit card will harm or improve your financial situation. Using a credit card irresponsibly can seriously damage your finances. Only acquire credit that makes sense for you. Not all credit cards are created evil.