Credit cards are often vilified. However, a properly managed credit card can actually make your life a lot easier. It does take discipline to gain all the benefits of your credit card. To make sure that your credit card debts don’t get out of hand, budget awareness is key. Using your credit cards to cover debts you already need to pay is a great way to start.
You Don’t Have to Carry Cash
The right credit card will not only protect you from cash theft or loss, but it can make you money. According to the experts at SoFi Invest, SoFi’s credit card allows you to earn 2 points per dollar spent. Those points can be routed to
- pay a loan
- invest in stock
- invest in crypto
If you have to make the purchase anyway, why not boost your investments and enjoy the benefits over time?
It should be noted that not every card out there offers full-service banking. However, if you are rebuilding your credit or need to branch out as an investor, setting up an account with SoFi can allow you to
- round up at the register to increase your savings
- use your credit card points to boost your investment accounts
- get a new credit card without having a hard credit score pull to get pre-approved
Once you’re pre-approved, your SoFi card will require a hard pull.
You Can Make Remote Purchases
You can make purchases around the world with the right credit card. You can also use the right card to help you manage currency exchanges around the world.
If you need a card for international transactions, make sure you are fully aware of any fee requirements to avoid a surprise when your statement arrives. While a credit card will allow you to carry a balance, there are also charge cards that require you to pay them off completely each month.
You Have Protection Against Fraud
Your credit card statement is your final way to guard against fraud. If you’re buying from an online vendor for the first time, go ahead and set up your account before submitting your card information so you can track that purchase. Make sure the charge doesn’t show up as a subscription on your next account.
The credit card protections against fraud are a better deal than protections against bank or debit card fraud. If your credit card is loaded with fraudulent charges, you will need to fight the charges but your bank account will not be stripped while you battle the fraud. Never use your debit card to make a purchase at a new vendor.
Your credit card accounts can be managed to the point that you can actually come out ahead each month. Carefully review the card options available for the type of shopping and travel you enjoy. If you have the money for a large purchase and find a new card that offers benefits you will use or would have paid for anyway, go ahead and get the new card. Make your purchase, pay it off, and enjoy the benefits.