Why Credit Cards Matter

Having no credit history can make it very difficult to secure basic goods and services such as renting an apartment, renting a car or even getting low cost insurance. Many people are worried about getting their first credit card, but it is an important step in today’s world and one that makes life easier. 

Having a credit card offers you a way to pay for goods and services, such as airline tickets, car rentals, hotel rooms, and online shopping, as well as every day conveniences such as gas or a grocery store run. They can be a life saver in an emergency situation providing you with spending flexibility when you need to pay later, such as a car accident or health emergency. 

Getting your first credit card can be difficult for many, since they do not have any credit history. A secured credit card can be a great place to start. Your credit limit will be based on the security deposit that you send to the credit card company. They don’t usually offer high limits, but they do help you build a credit history so that you can get an unsecured card after about a year of on time payments. 

Having a good credit rating positively impacts your entire life and it opens the door for you to secure better interest rates, auto loans, personal loans and a home loan in the future. 

The best thing you can do is don’t spend more than you have and live within your means. Responsible credit card use will help you build a solid credit history and is a great path to financial freedom and security. 

Building a good credit history or re-building your poor credit is something that it’s never to late to start doing. You can start now, today, so why wait? Good credit makes life easier and it is something everyone can do.