Reasons to Use Your Credit Card

Using a credit card is not all bad, offers benefits to the user

For many consumers today, their credit card has become a source for overspending or impulse buying, with the mind set of living in the "now" and not planning on how the debt will be repaid in the future by only making future minimum payments. This can lead to a steady growth of accumulated debt and with no clear budget to eliminate it. Thus, even talking about it becomes a "no-no" around the home. Certainly, for individuals with loads of debt and excessively high interest rates, it does not make sense to use a credit card any longer. It would make more sense for these individuals to talk to their local bank or credit union to determine their best course of action. However, for others who apply discipline to their purchases, there are many great reasons to use a credit card, whether it's the first credit card in the home, or an upgrade to the best credit card that can be found. Here are a few of the top reasons to get a credit card, and use it.

• Build Credit: A first credit card can help to build credit and improve your credit score. This is something that will pay dividends over a lifetime, with improved credit ratings and scores, opening the door to lower rates on loans of all kinds, insurance rates and more. Establishing and maintaining proper credit is one of the first and most important financial milestones for anyone striking out on their own.

• Rewards: Credit card companies encourage their members to shop with them. One way to do this is by offering rewards on purchases. Whether it's 1% cash back, points that can be used toward purchases, miles that can be used for travel, and more, these rewards can add up in a big way over time. It's a simple strategy for stretching anyone's money a bit further, and for consumers to get more bang for their buck. Rewards are more beneficial to individuals who pay off their balances monthly, since the interest rate does not come into play. If you do not pay off your balances monthly, check your interest rate because the interest you are paying on rates 18% or higher may outweigh any benefits you are receiving.

• Extended Warranties and Other Fringe Perks: Today, the best credit card companies provide a wide range of fringe benefits and perks. That includes add-ons such as free extended warranties on purchases when the card is used, reduced or removed fees for international shopping and global travel, special discounts and deals through partner companies, and much more.

• Security: Losing a wallet stuffed with cash means saying goodbye to that money. A credit card though, can be cancelled and replaced. Further, credit card companies today provide excellent fraud protection. If illicit purchases are made, they're easy to spot and prove, and there shouldn't be any cost to the cardholder, if reported promptly to the card issuer.

• Convenience and Flexibility: Credit cards are ultimately very convenient as well. Consumers don't need to bring large amounts of cash, or carry their checkbooks. They also don't need to worry about overdrafts, thus eliminating the concern of exactly how much money is in which account, and when. The bill can be paid at the end of the month, and all of the purchases and expenses will be neatly laid out. That provides flexibility with spending from day to day and week to week as well. Using a credit card is quick, easy and convenient. Plus hotels, car rental companies, and online merchants don’t accept cash or checks. While MasterCard and Visa cards are accepted at millions of merchants worldwide.

Get credit card deals and find the best credit card rates and opportunities by visiting BFGFCU.org. Find a wide range of credit card options, from prepaid cards to low interest rate cards and much more. BFG Federal Credit Union serves individuals who live, work, worship, attend school or volunteer in Summit County, Ohio and their immediate family and household members.