If you look around, paper is becoming less and less of a popular element in our world. Whether it’s digital that is taking over, or plastic, paper is slowly being cycled out. This is also true in terms of money. More and more people are finding themselves utilizing plastic money in the form of debit cards, gift cards, and credit cards, more than they are cash. So if you’re someone who is constantly on the look out for ways to better improve your life, maybe using a credit card is exactly what you need to do.
There is a negativity out there about credit cards, but it’s important to know that being a responsible credit card owner is not all that common of an occurrence. The majority of people out there don’t understand how credit cards work, thus they fall behind on their payments and have a bad credit score. With that said, if you just take the time to educate yourself about credit cards, it can be a real life changer. Credit cards not only provide you with a fast way to pay for things, but it also helps you keep organized as well as keep records of all your purchases automatically. By far the biggest perk of being a credit card user is the ability to get approved for loans though so you can buy that new car you always wanted, or even a new house. With an awesome credit score, the sky is the limit!
But getting that awesome credit score isn’t always an easy path to get to. First, of course, you need to apply for a credit card. I recommend something like a MasterCard, but if you’re a student I recommend a Discover It card. These cards are generally very easy to apply for and get. Once you get your credit card, you need to start making purchases. In order to get a great credit score it is crucial that you make your payments on time and are never late. This is why making smaller purchases is probably the best route to go unless you know for a fact that you have the money ready to pay off a large purchase. Your credit score shows that you know how to pay off your debt in a timely manner.
In terms of a credit score, or FICO score, you’re going to want to shoot for a large credit score; something above 700 would be great. If you have anything like 600 or below, then this means you have bad credit and are not going to have an easy time applying for loans or even a better card. However, with a high FICO score, you will be treated to large car loans, mortgages, and other big ticket items.
Plastic Over Paper Credit Picture License: Mr.TinDC via photopin cc