Benefits of Credit Cards to Young Professionals

Instead of “debt”, think of credit cards as a way of improving your financial knowledge.

Credit cards are often associated with the mythical impression of being a source of debt. Did you know that credit cards are a great way of learning how to control your financial

situation, too?

#1 Teaches you how to control your budget.

By saving credit card receipts as a referral to your monthly statement, you will get a clearer insight of what you spend for. This way, you will learn how to control your expenditure accordingly.

#2 Helps build a solid credit history.

You may have no urgent need for a house or a car right now, but in the future, you will find that banks tend to approve and give lower interest rates to borrowers who have a solid credit history compared to those who don’t.

#3 Enables fast loan approval.

As mentioned, banks will have no trouble of giving you loans if you have been paying your bills on time. Simultaneously, you will also get lower interest rates on mortgages and loans when you a have a high credit score.

#4 Redeem rewards on various purchases.

Most credit cards will allow you to redeem cash back on daily purchases, such as on gas and groceries. You can also redeem airline miles for your trips or get discounts on your next flight by using a credit card.

#5 Can be used during sales or times of need.

These days, you’d want to save as much money as possible. Shopping malls often offer great discounts for a limited time. You will never miss out on a good deal if you have a credit card ready for purchase.

#6 Can be used for withdrawing cash advance.

In some situation, you’d need cold hard cash as soon as possible – most credit cards allow you to withdraw a certain amount of cash from the bank. Another great point is that you can also get instant cash!

How to settle credit card debts.

If you have recently taken a credit card and is worried about the bulking amount of debts delivered to your doorstep every month, here are a few ways to settle the score: Discuss with the creditor about your situation. Settle your debts as soon as possible – preferably before collection. Make use of quick personal loans with with low interest rates and short tenure period.

Read more:

http://www.360financialliteracy.org/Topics/Credit-and-Debt/Credit-Cards/Advantages-and-Disadvantages-of-Credit-Cards

http://www.bankofamerica.com/credit-cards/education/advantages-of-credit-cards.go http://business.time.com/2012/01/24/6-steps-to-settling-your-debts-for-less-than-you-o

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