As the holidays approach, gift cards remain a popular gift option, but they’re also a target for scammers. These fraudsters use tactics like phishing and tampering with physical gift cards to steal funds before they can be used. To protect yourself and your loved ones this season, it’s important to stay aware of these risks.
Having a well-stocked emergency fund is important. But so is saving for retirement. So how do you know which one to focus on? Well, we’ve got you covered. Here’s what you should know.
Halloween is a time for spooky fun, but it can also bring a scare to your wallet if you're not careful. From costumes to decorations and treats, the costs can add up quickly. Here’s how to manage your Halloween budget and keep your spending under control while still enjoying the festivities.
Now is the moment to turn your attention to your tax obligations. With less than 60 days remaining until the tax deadline now is a good time to prepare your documents and file.
Need a smart strategy to save on essential school supplies? Planning your dream vacation or gearing up for the holiday season? With a club account, you can save for essential school supplies, exciting vacations, and joyful holiday celebrations, making your financial goals more attainable and stress-free.
According to a survey from CreditCards.com, “47% of Americans are carrying credit card debt.” This statistic would make my grandfather furious if he heard it. He would often say to me, “Vivi, the world started to go downhill once they introduced plastic money!” Following my grandfather’s testament to the downfall of society, he would then tell me the story of how he used to always leave a wad of cash in his work locker for emergencies.
His locker remained unlocked and, oftentimes, coworkers would borrow some of his “hidden” stash. My grandfather never questioned it, as he explained, “I trusted that they would always pay me back and they did.” This work locker was my grandfather and his friends’ version of a crediting system. It was an “old-fashioned” system, but it worked. My grandfather has refused to get a credit card in his 87 years of life.
It wasn’t until I started to think about buying a house that I had to accept my fate and conform to the constructs of society and get a credit card. Naively, I at first hoped that my punctuality with my car payments and student loans would give me enough of a good credit score to carry me through life and I’d just live happily ever after! There was some truth to that: I did have a good credit score, but there wasn’t enough depth.
I only had installment loans (car loans and student loans), not revolving debt (credit cards). Installment loans show that you can pay back borrowed money consistently over time while revolving debt proves you can manage varying monthly amounts and pay it back.
Now, there are no laws saying that you need a credit card in order to buy a house. However, a credit card can make purchasing a home easier, provided you don’t carry a revolving balance and spend yourself into oblivion up until your home purchase! Essentially, a credit card gives you a chance to show a lender that you’re a good credit risk and that you’re responsible with paying back revolving debt.
I knew that I’d be looking for a home within a two year time frame from when I would get my first credit card which gave me ample time to bump up my credit and prove to lenders that I can manage my personal cash flow. I also knew that I was still terrified of going into credit card debt so I made the decision to only use my credit card on groceries. Again, hi! I’m a conservative financial worry-wart. Nice to meet you. This approach eased me into using a credit card and I must say – I did feel kind of cool the first time I used it!
Like most things in life, there are pros and cons to using credit cards. If you’re smart about how and when to use it then a credit card can be a useful financial tool. I’ve now had my credit card for a year and I’ve learned a few things along the way. If and when you decide to apply for a credit card, here are some tips and tricks I’ve learned from my own credit card journey:
Overall, credit cards have their downsides but they also have plenty of positives and can do more good than harm if used correctly. A credit card can help build the necessary credit history you need to purchase a home and it can lower prices on things that you buy thanks to rewards! A credit card offers great convenience and security with fraud protection. Bottom line, it is not really a question of whether you should use a credit card, but rather, how you should use it. All you need to do is map out your credit card game plan and stick to it!