Get a Credit Card, Build Up Credit Score

You might wonder why you even need a credit card. Cash works just fine for you, and if you don’t have any in your wallet then you can just pull out your debit card, and then get some cash back. It’s convenient not to have to flash your ID all the time, not that you’re being shady, it’s just convenient is all. And your debit card can function just like a credit card in most places anyway, so what’s the big deal?

Credit card owners know what the deal is. Not only is paying with your credit card highly convenient, it also helps you build up good credit. Having a high credit score will help you out in life, and having a low score will make things harder for you. Cash and debit cards can’t build up good credit for you, but credit cards can. Okay, but what’s a credit score? Why do you need one? Your credit score is an indication of how reliable you are in paying your debts. Basically, people who ask for your credit score want to know that you will give them the money you owe them, or they will use your credit score as a general indicator of how trustworthy you are as a person. It makes sense that if your credit history shows that you pay your bills on time and that you’ve been doing so for a long time, people will trust you. If you tend to pay your bills late or you haven’t been building up credit for very long, then people will be more reluctant to rely on you. Banks and credit card companies will be less likely to lend money to you and employers and landlords may be less likely to hire you or rent you property.

You may have a hard time borrowing money, passing employment background checks or finding housing if you don’t have any credit built up. If you haven’t started building up credit yet, now is a good time to do so. Talk to your bank and apply for a credit card. If you have a hard time getting approved because of lacking past credit to begin with, try applying for a store credit card first. And if you’ve accumulated bad credit, all hope is not lost. Stop using your credit cards, pay off your debts, and get professional help to manage your credit situation. It is to your credit to ensure that your credit score is the highest that it can be.