How Credit Cards Can Improve Your Financial Life

credit cards

Credit cards get a bad rap in frugal circles. The high interest rates and the ability to quickly get deeply into debt make credit cards seem opposed to any sort of money saving lifestyle. This is true if they are used irresponsibly. However, if used responsibly and carefully, credit cards have advantages which can be a great way to save you some money and, maybe, make your life a little easier.

The trick to making credit cards work for you instead of against you is to pay them off every month, in full. If you avoid interest, then everything else that comes with the card is “free.” To do this, you have to be willing to stick to a strict budget and know that you’re not spend

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4 Responses to How Credit Cards Can Improve Your Financial Life

  1. Alex says:

    I love free rewards from credit cards! I have never used one for any of the other services, but it feels great to know that I’m making money on my normal expenses without any extra cost. I agree it is important to avoid an annual fee and avoid overspending, so it definitely isn’t for everyone.

  2. Another important thing that far too many fresh college grads forget is how important it is to start building credit. Now I don’t mean that they should get cards when they can’t afford to pay them off. It’s important to take advantage of cards w/ decent rates while credit card companies don’t care that you don’t have any credit history whatsoever. In a few years it will be harder for you to get decent card offers.

  3. Tony says:

    I really think using a credit card only has a very minor, if any, influence on the amount I spend. Therefore, the net effect of using them is certainly positive for me.

    It amazes me how many people cannot control them.

  4. Gail says:

    Having those rewards available come Christmas time can certainly aid in gift giving as well. I try to save up all rewards until about October and then cash them in fo I get ‘free;’ gifts.

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