By Daniel

August 3, 2022

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Credit cards are one of the most important tools in managing your finances, but many people don’t know how to use them. The reality is that credit cards are useful only if you use them responsibly and pay off what you can when due. Here are five things you didn’t know about credit cards:

5 Things You Didn't Know About Credit Cards

1. Credit Cards Can Be the Best Way to Build Credit Quickly

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The best thing about credit cards is that they can help you build good credit quickly. By using them responsibly, you can start building a better credit history and get approved for loans in the future.

If you have bad or no credit, the best way to start rebuilding your score is by using a secured credit card (one with an interest-free introductory period) with low monthly payments. Some cards with low monthly fees and other prepaid cards are available online if you want to apply for a credit card.

If this sounds like something that might work for you but doesn’t fit into your current budget right now—don’t worry! Building good habits around spending money on essentials before moving on to frivolous purchases will take time. There’s no reason why it shouldn’t happen once those initial steps are taken.

2. You Can Get Discounts on Goods and Services

Have you ever used a credit card to buy something and then realized that you could have paid less using cash or another method? It’s possible that the merchant offered a discount on goods and services.

You can also use your credit card to get discounts at restaurants, hotels, and other businesses. For example:

1. You might be able to get a discount if you pay with plastic when eating out at an upscale restaurant.

2. A hotel might offer an incentive for paying with plastic when booking online or over the phone. Maybe they’ll give you free Wi-Fi access if someone wants to check their email while waiting for their room!

3. Great for Emergencies

If you have an emergency and you don’t have the money in your account, a credit card can help. If you don’t plan for these unexpected expenses, they will eat away your finances over time.

The first thing to consider when using a credit card is how much advance payment should be made before purchasing something on the card. This will vary depending on the item and where it’s being purchased (e.g., grocery store vs. department store).

A general rule of thumb: try not to exceed 25% of the value purchased; any funds left over after purchase are still available as backup options if needed!

The second thing you should do when using a credit card is to ensure that there aren’t any late fees involved with getting paid back beforehand. Only pay off what’s owed once instead of paying interest monthly.

4. Great Tools for Budgeting and Keeping Track of Spending

Credit cards are great tools for budgeting and keeping track of spending. You can use them to set up automatic payments, which will help you stick to your budget.

If you’re looking for ways to reduce your debt, credit cards are an excellent way of doing so. They allow users access to more money than they would be able to if they paid cash for every purchase made with their credit card (including interest rates). However, if used incorrectly, this could cost more than paying off the balance each month would have done in the first place!

5. How are credit cards different from debit cards?

Credit cards are loans to the card issuer, which you pay back over time. The amount you owe on your credit card can increase or decrease depending on how much money is in your account at any given time and how much you spend.

Debit cards are similar in that they allow customers to make purchases using their bank accounts, but unlike credit cards:

  • They don’t require any interest charges (interest rates.)
  • You can’t build up debt by using them too much. Instead, they help keep track of how much money is left in each transaction until it’s paid off completely.


Credit cards can be a great tool for building your credit score, but they are also useful for many other things. So, remember, if you want to take advantage of having a credit card in your wallet, do not hesitate. It’s easy to start, and once you have one, it will save time and money on purchases!

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