Advantages of Credit Cards
Are you getting wary of credit cards and their confusing tangle of benefits and debt traps? With all the flak they get, you may have considered ditching your credit cards for good. Here are a few reasons why that’s not the best idea!
First, credit cards can boost your credit score. You’ll need a credit history and a respectable credit score to qualify for any major loan. If you don’t have any open credit cards, it’s going to be difficult for you to land a favorable loan term. In order to give you the best shot at excellent credit, it’s best to have at least one card open.
In the long run, having multiple cards can boost your score in payment history and your credit utilization rate. So, while you may be quick to observe that several cards may be a good thing, consider the age of the cards first. Perhaps lots of NEW cards won’t help you achieve excellent credit. Rather, a proven track record of on-time payments and responsible use of credit is the vital factor here.
Second, there are rewards and benefits. Many credit cards offer rewards on your purchase, including the Visa Platinum Card currently offered by Wasatch Peaks. This card boasts Cash Back rewards of up to 1% on purchases with no annual fee! As a credit union, Wasatch Peaks is also able to provide lower interest rates than other financial institutions. Begin accumulating your Cash Back from November to November and this time next year, you could be receiving your payout.
And finally, your cards have purchase protection. Lots of credit card companies offer theft and loss protection for purchases that are made on your card. Make sure to check your statements each month for any out of place purchases. If you do find a fraudulent purchase or have lost your card, simply contact your financial institution and they will assist you further. Wasatch Peaks is no exception to this and with our Visa Platinum Card, you will also receive Travel Accident Insurance and Auto Rental Insurance.
Of course, credit cards must be used responsibly. It is important to always pay your bill on time and avoid spending more than you can afford. Set up your credit card to pay for a monthly bill. Then, set up your credit card bills to be paid automatically as well. Keeping your credit score strong can have positive effects on your finances for years to come!
The gifts and rewards may be worth less than a better interest rate – which is why your Wasatch Peaks Credit Union’s credit card is usually your best bet.
For more information on the low rates and great benefits of our Visa Platinum Card, contact our specialists at Wasatch Peaks by calling 801-627-8700.