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Are Credit Cards Worth It?
Written by Sarah James ·
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SUMMARY
- Using a credit card responsibly is one of the main ways to build the credit history and score that lenders and landlords check.
- Most cards offer rewards like cash back or sign-up bonuses that pay you back for spending you'd do anyway.
- Paying your statement in full each month means borrowing at 0% interest.
- Credit cards typically offer fraud protection that's faster and safer than carrying cash or relying on a debit card.
- The right card can also help you avoid foreign transaction fees while traveling.
Build Credit
Do you really need that extra piece of plastic in your wallet? Yes, and here’s why.
A credit score and credit history may seem ambiguous now, but there will come a day when you will wish for that high credit score and long credit history. Whether it is renting or buying a property or financing a car purchase or some other large purchase, your credit score and credit history matter. They will determine if you get approved for that new home or new car, and the borrowing rate you are charged. Would you rather pay more than necessary? Absolutely not, no one does. Time to get a credit card and start building that credit.
Rewards
There are so many credit cards out there and most of them offer some form of rewards, sometimes even just for signing up! Besides sign-up bonuses, most credit cards offer continuous cash back rewards as you use the card. Why not start paying yourself back for spending money?
Interest-Free Borrowing
By using credit cards, you can borrow money for a short period of time and pay zero interest as long as you pay off the credit card in full by the payment due date. You can’t get a lower rate than that.
Peace of Mind
Most credit cards come with some form of insurance these days. This means if you have a fraudulent charge on your card, you can easily report it to your bank and get the funds back right away. If you rely on using cash for all transactions, you risk getting it stolen or simply losing it. With a debit card, your money actually leaves your bank account if a fraudulent charge were to occur. You will eventually get your money back, but it can take longer than if it were to happen to a credit card.
Avoid Foreign Transaction Fees
There is a lot of world to see and that requires traveling. If you get the right credit card, you can avoid foreign transaction fees when traveling in a different country, which can add up quickly. Save your money for traveling and don’t waste it on fees.
Convinced you need a credit card now?
Be one of the first to get in on the next generation of credit cards. Visit TomoCredit.com to learn more.
Convinced You Need a Credit Card Now?
Be one of the first to get in on the next generation of credit cards. Visit TomoCredit.com to learn more.
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The language used on this page is for creative purposes only. TomoCredit (or TomoBoost) does not guarantee an increase in credit score. Individual results vary based on each person's unique credit history and financial circumstances, and subscription payments are non-refundable.
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