Credit Card Secrets
If you have credit card debt, you're not alone! Most Americans have about three different credit cards in their wallet. You've probably heard to steer clear of credit cards, but, they're actually a great financial tool when used correctly. Think of them as a means to help build your credit, protect against fraud, and earn you rewards! Mark has a few tips to help you get the most out of your credit cards. Check it out!
- The Secrets of Credit Cards: a Video Summary
I’ve got some numbers that’ll make your head spin:
- The average credit-card holder has 2.7 credit cards (we'll round that to 3).
- The average household owes about $5,300 on those three credit cards.
- The total U.S. credit-card debt is at 14.9 trillion dollars.
So, clearly, with numbers like that, there’s only one conclusion: Credit cards are evil and must be destroyed.
No, not really. Credit cards are not evil. When used properly, a credit card is actually a very powerful tool. I’m gonna go so far as to say that a credit card is the Swiss Army knife of financial tools.
For starters, it’s a building tool. Every month, when you buy something with your card and pay your bill on time, you’re improving your credit score in a big way.
It’s also a protective tool. If your card is ever stolen, it protects you by limiting the amount of money you’re responsible for due to unauthorized charges.
Finally, your credit card is a treasure-finding tool. With the right card and a healthy credit score, you can earn rewards like cash back on every purchase not to mention points or miles that you can redeem for airline tickets, hotels and more.
One last tip: paying off the full balance each month is a sure sign that your credit card is a true financial tool.
For more ways to keep your money safe and healthy, visit our Learning Center.