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Many people talk bad on credit cards
But
Let me explain the pros of credit cards
(thread)
But
Let me explain the pros of credit cards
(thread)
First off, I want to lead with this
Credit cards can be HORRIBLE for your finances
If you can’t control your spending
Or
You can’t delay gratification
Or
Pay them off each month in full
Then I don’t recommend spending on credit
18%-22% interest rates will haunt you
Credit cards can be HORRIBLE for your finances
If you can’t control your spending
Or
You can’t delay gratification
Or
Pay them off each month in full
Then I don’t recommend spending on credit
18%-22% interest rates will haunt you
However,
I do want to explain so pros of credit cards
Because
If you can
1. Pay off in full each month
2. Control your spending
3. Delay gratification
Then credit cards can quite actually be good
I do want to explain so pros of credit cards
Because
If you can
1. Pay off in full each month
2. Control your spending
3. Delay gratification
Then credit cards can quite actually be good
I am going to break this down into 4 parts
1. Sign up bonus
2. Card rewards
3. Fraud protection
4. Ability to track spending and pay at once
Let’s get into it
1. Sign up bonus
2. Card rewards
3. Fraud protection
4. Ability to track spending and pay at once
Let’s get into it
1. Sign up bonus
Many credit cards offer a bonus when you sign up
They usually have stipulations attached to them
“You have to spend x amount in 3 months to receive y in rewards”
This is a great way to get a jump start on those sweet rewards the card offers
BUT...
Many credit cards offer a bonus when you sign up
They usually have stipulations attached to them
“You have to spend x amount in 3 months to receive y in rewards”
This is a great way to get a jump start on those sweet rewards the card offers
BUT...
NEVER increase your spending solely for a sign up bonus
Be smart about it!
When I was making the move to a new city after college, I knew I would incur extra expenses for furnishing a new apartment
So
I signed up for a travel card
and easily hit the sign up bonus
Be smart about it!
When I was making the move to a new city after college, I knew I would incur extra expenses for furnishing a new apartment
So
I signed up for a travel card
and easily hit the sign up bonus
2. Rewards
Whether the card offers
Cash back
Travel points
Hotel points
Or other rewards
Look at this as “free” rewards that come from your expenses you already have
Reminder; PAY OFF IN FULL EVERY MONTH
Whether the card offers
Cash back
Travel points
Hotel points
Or other rewards
Look at this as “free” rewards that come from your expenses you already have
Reminder; PAY OFF IN FULL EVERY MONTH
I have a few cards that offer different rewards
I have 2 that offer cash back
And 1 that offers travel points
I keep them for longevity of credit history... but I ALWAYS pay in full
I know @itsloganjones puts his flipping on credit cards and enjoys those rewards!!
I have 2 that offer cash back
And 1 that offers travel points
I keep them for longevity of credit history... but I ALWAYS pay in full
I know @itsloganjones puts his flipping on credit cards and enjoys those rewards!!
3. Fraud protection
This is something that you don’t really think about
Until you need it
Debit cards, more than likely, don’t offer this type of protection
And to me, that’s a protection that I want
This is something that you don’t really think about
Until you need it
Debit cards, more than likely, don’t offer this type of protection
And to me, that’s a protection that I want
4. Track spending and pay at once
I like this feature because
1. I can see where my spending is allocated each month
2. I have the ability to see if there were any unnecessary charges on my card
And I know, every 15th of the month, my credit card bill is automatically paid!
I like this feature because
1. I can see where my spending is allocated each month
2. I have the ability to see if there were any unnecessary charges on my card
And I know, every 15th of the month, my credit card bill is automatically paid!
Instead of the money being taken out at the time of the swipe
I can go back and make sure it all looks good
And
I can get those sweet rewards I talked about earlier
I can go back and make sure it all looks good
And
I can get those sweet rewards I talked about earlier
I want to reiterate
IF YOU CAN’T CONTROL YOUR SPENDING OR YOU CAN’T PAY YOUR CARD OFF IN FULL EACH MONTH
THEN YOU DO NOT NEED A CREDIT CARD
18%-22% INTEREST RATES WILL HAUNT YOUR FINANCIAL FUTURE
And if you get a card, but see yourself spending more money, lose the card
IF YOU CAN’T CONTROL YOUR SPENDING OR YOU CAN’T PAY YOUR CARD OFF IN FULL EACH MONTH
THEN YOU DO NOT NEED A CREDIT CARD
18%-22% INTEREST RATES WILL HAUNT YOUR FINANCIAL FUTURE
And if you get a card, but see yourself spending more money, lose the card
I hope this thread enlightened you on the pros of credit cards
Again, please make sure you don’t get yourself into debt because of a credit card
Thanks for reading and if you think this message could be of help to to others, feel free to share it!
@DecadeInvestor
Again, please make sure you don’t get yourself into debt because of a credit card
Thanks for reading and if you think this message could be of help to to others, feel free to share it!
@DecadeInvestor
