You might have a lot of people telling you their opinions about whether or not you should get a credit card.The answer is yes…and no. If you are NOT disciplined with finances….then I would STRONGLY advise you NOT to get credit cards. If yo u are the type of person that sees some new gadget and says, “I just have to have it!!!” Credit cards are not your friend. They are your enemy!
A person who has a lack of discipline with money, will always end up being poor. If you do not know how money works, don’t try to access someone else’s money! It will hurt both now and in the future.
If you are a person who can handle money well…then you MUST read on! I will show you why not only is getting a credit card a good idea…it is a GREAT idea!
There are several reasons you should get a credit card. If you are getting a card just for emergencies, I would also recommend that you do not get a card. WHY? Because eventually we will justify anything and everything as an emergency. You have to handle the emergencies with your cashflow, and your investments with other people’s money!
Here are the top reasons you should get a credit card:
Look no credit is not good or bad credit…It is not credit…but in the life of investing and business…no credit is bad credit! If you have no credit history, lenders will not give you money! So you must at some point establish a credit line. One of the quickest and easiest ways to do this, is through credit cards. It is good that you use credit cards often, as long as you pay them on time! I did not say pay them off! There is another discussion for another day!
If you want to really start using other people’s money for investment through loans, it is good to know how to handle a credit card to establish that credit so you can eventually get to BIG loans.
Use for cash back or mileage benefits-
Although this should NEVER be the primary purpose for getting a card, you might as well get a card that either gives you cash back or mileage for flights. For me personally, I travel a lot! And because I travel a lot, I like the free miles that I get with may card. I get multiple round trips a year with my credit cards with frequent flyer miles.
I will say that having a card just for the sake of having cash back really does not make much sense unless every month you pay off your CC debt. What you have to ask yourself, is my interest on the accumulated debt, wiping out the profit that I might be making in the cash back? In MOST cases, it either is a wash or you are losing.
Again, if you can pay off your CC debt every month, then it might be something to look into. In most cases people who handle their cards wisely only get around $300-$500 in cash back a year! Ask yourself this question, is all the stress for a CC just for cash back really worth $300-$500. I would say in most cases no.
However, you can use that CC and learn how to maximize its benefits…READ ON!
Leverage it to be good debt-
What is the best way to use a credit card. How about investing with it. Use it to make money with! Specifically a cashflow! Learn and educate yourself on how you should/could use your credit card to invest in things that will give you return. For instance maybe you have an online business that you have PPC ads to such as Affiliate marketing! Instead of using your out of pocket cash, why not use someone else’s money to pay for the PPC ads.
Obviously the PPC ads are there to make you money! They are there to direct people to your website. This is just one of the ways that you can use your CC to help you invest and build cash flow! Why use your own money, when you can use someone else’s?!?
Typically you have between 30 and 45 days before you have to pay your first bill. This is great. This is tax free and interest free money! Right along with the last point, why not use someone else’s money to pay for investments that you get for free without any interest. Obviously with any loan that you take out, there is always interest on it. However, the beauty of credit cards is that there is a 30-45 day turnaround. Make sure you check with your credit card company to see if you qualify!
So think about what can you invest in, that will make you cashflow within 30-45 days? Ready…set….go!
Last but not least, is the protection that you get from using a credit card. Unlike debit cards, credit cards have awesome fraud protection and merchant protection. Overall they are much safer to carry. If they ever get lost, stolen, or misplaced cc companies treat their customers right. And why wouldn’t they? The average American has $15000 in credit card debt.
These care seems obvious to them. If the person has a card, most likely he is going to spend what he should not be spending on. With that being said. This is again NOT a main reason you should get a credit, but only to see it as one of the perks.
Overall, credit cards have the ability to do some really awesome things. As I said before though, it is not WISE for you to own a cc unless you can be disciplined with holding onto one and using it wisely!
Here are 2 books that you should consider reading!
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