Remember in this post where I discussed my financial goals , well as a result, credit card number one now has a $0.00 balance. Ha! Feels good. I also put $300 towards credit card number 2 which now has a balance of $1307.52. As I mentioned in the aforementioned post, I am in no hurry to pay card number 2 off because I have a 0% interest rate on that card and I am using it to increase my credit score. Speaking of credit card usage, I stumbled upon this post posted over at cashmoneylife which discuss 10 reasons why credit cards are good. The number one reason he had posted was this:
1. Build credit history: Charging small amounts and paying them off is a great way to establish credit history. Without credit history, it can be more difficult to get loans (including good loans such as student loans or a mortgage), secure insurance, or even land a job. If you are able to secure a loan without any credit history, your loan rate may be higher as a result.
Now, once you've read the post (it is a bit long...think thesis HA!!) proceed a bit further and read the comments. There are several folk who disagree with the original poster reasonings. I happen to agree with his post. Actually, several of his given reasons I never took into consideration, such as the extended warranties and short term loans.
I am NOT advocating the use of credit cards as a tool to go ca-razay with. Nope never that. Not ever. I do think if used properly, it has benefits.
I hope the above link will prove to be beneficial to someone out here in blog land.
