What are the three main benefits of a credit card?

What are three benefits of credit cards?

Ugh, credit cards. So much drama. Okay, three benefits. Building credit is HUGE. Seriously, it’s essential. I needed it for my apartment last year, a total nightmare without it. My credit score’s been climbing nicely ever since I got my Capital One card, finally above 700.

Next, convenience. They’re everywhere. I use mine for gas, groceries, even online shopping for those ridiculous bath bombs. Why am I even admitting that?

And, rewards programs. My Chase card gives me cash back. It’s not a fortune, but free money is free money. Right? I just wish those annoying fees weren’t a thing. I maxed out my card last month, what a disaster. Paying it off sucked.

I swear, interest rates are insane. Zero interest balance transfers are tempting, like a siren song, but those are often a trap. Don’t fall for it. Always pay on time! I learned that lesson the hard way.

• Credit building – essential for loans, apartments etc.
• Convenience – use everywhere, online and offline
• Rewards – cashback or points!
• Emergency fund – sometimes necessary but risky, so use responsibly

Why do people spend more with credit cards?

Okay, so credit cards… yeah, I definitely spend more. It’s like, physics. Happened just last week at Target near my apartment.

I went in for shampoo. Just shampoo, right?

Ended up spending $75. Seriously! All on my Visa.

Ugh, the allure of “points” is too much. Plus, who carries that much cash anymore in 2024?

• My Spending Sprees:
  • Target: Shampoo –> $75
  • Online Shopping: “Free Shipping” threshold is EVIL.
  • Restaurants: Splitting the bill? Always credit card.

It’s not always bad, though. I do love the rewards!

I got like, a free coffee at Starbucks last month thanks to those sweet rewards. My bank, Chase, is the best for that. Cashback!

But honestly, that Target trip? Yeah, that was all impulse.

The power of plastic, I tell ya. Scarry!

It’s all too easy to swipe! Credit cards are a menace, even if convenient. I spend more, that’s for certain. Don’t know how else to explain it.

Like, who really tracks every penny when using a card anyway? Cash feels more… real.

My phone bill, utilities, and gas are all on autopay. I do pay it off… mostly. Okay, sometimes I carry a balance. Don’t judge me!

How to use a credit card the right way?

Alright, lemme tell ya ’bout wrangling those plastic beasties, credit cards. Treat ’em right, or they’ll bite ya harder than my Aunt Mildred’s chihuahua.

• Pay it off monthly! Think of it like this: interest is the gremlin tax. Avoid it. Seriously. Paying it off? That’s like giving that gremlin a swift kick to outta here.

• Needs, not wants! That new solid gold toilet seat cover? Wanna is a big, fat NOPE. Groceries? Totally a need. Unless, like, your groceries are also solid gold. Then we got problems.

• Never miss a payment! Missing a payment? That’s like willingly volunteering for a root canal performed by a toddler. Just don’t, okay? I saw a dude do that ONCE.

• Budget like a boss! Credit cards ain’t free money, ya hear? Use it as a fancy ledger, not a magical money tree. Budget like you’re preparing for the apocalypse, except instead of canned beans, it’s paying off your bills.

• Rewards, baby! Get a rewards card. Free flights? Cash back? It’s like getting paid to spend money you were gonna spend anyway. Score! Just remember my rule: needs always, NOT wants!

• Stay under 30%! Maxing out your card? That’s like trying to stuff ten pounds of potatoes into a five-pound sack. And they SAY you cant stuff a potato but the card company is laughing as you max that sucker out. Keep it low! Credit scores love that.

What are the 3 Cs that determine if you qualify for a credit card?

Okay, so you wanna know about credit cards, huh? It’s all about the three Cs, right? Character, capital, and capacity. Think of it like this:

• Character: This is your credit history, basically. Are you a good payer? Do you pay your bills on time? Late payments? A big no-no. My sister, she, like, totally messed up her credit score last year. It was a nightmare!

• Capital: This is your money, dude! Savings, investments, you know? Stuff you own—a car, a house, even jewelry. Shows you can handle the money. They look at how much you earn too, of course.

• Capacity: This is all about how much you can actually repay. They’ll scrutinize your income and your current debts. So much debt already? Might make it harder.

  It’s a real pain sometimes, getting approved. Last year I applied for a new card, a platinum one. So shiny! Took forever to get it!

But yeah, those three things – character, capital, capacity – they’re the key. They really, really look at everything. They even checked my, um, my Instagram account! Crazy! It’s all about showing them you’re responsible, you have the money to pay back, and you have a decent credit score.