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Before you ever begin your search for a credit card, it’s important to understand why you want to add plastic to your wallet or purse. Without a clear idea of the reasons to use a credit card, you may find yourself applying for no purpose. And what sense does that make?

Fortunately, you don’t have anything to worry about here. There are many reasons to use a credit card – as opposed to other forms of payment – including the following:

1. To Build Your Credit History and Score

Have you come to realize that your credit history is non-existent? Are you disappointed to find that your score isn’t as high as you thought it was?

There are other ways to build your credit history and score, such as paying on a secured or unsecured loan, but the use of a credit card is one of the best. Furthermore, it’s one of the easiest, because most people, regardless of their credit history, can find at least one card they qualify for. 

2. To Better Budget

Do you find it difficult to manage your money? More specifically, do you lose track of how much you’re spending throughout the month?

A credit card allows you to better budget, while also managing your finances in an efficient and effective manner. 

3. To Earn Cash Back

There is nothing better than receiving cash back for the money you spend. This gives you a strong reason to use a credit card, as opposed to paying with cash, a debit card, or check.

Compare the finer details of each cash back credit card before you make a decision as to which one is best for you. Details vary, such as the cash back rate and how you can receive the money you’ve earned. 

4. To Obtain a Sign-up Bonus

This isn’t the only reason to apply for a credit card, but it doesn’t hurt. Some credit cards offer a sign-up bonus of cash, while others give you reward points. 

The one thing you need to remember is that you’ll have to meet some type of criteria before you receive your bonus, such as spending a predetermined amount of money within the first three months of opening your account.

5. To Consolidate Credit Card Debt

Do you currently have debt spread over several credit cards? Is this costing you money every month on interest? Are you finding it difficult to track and manage your debt?

A balance transfer credit card allows you to consolidate your balances, which makes your debt easier to manage. Even better, if you receive a zero percent introductory rate, you’re able to save big money on interest for an extended period of time (typically 12 to 24 months).

Final Thoughts

While these are some of the better reasons to use a credit card, there are others that may also pertain to your situation and financial goals.

If you don’t have a credit card or are thinking of making a change to a new one, consider the benefits of doing so. This may be all you need in order to make your move.

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