So let us level with you—in the wrong hands anything can be a bad idea. Even extremely useful things such as power tools, kitchen utensils and automobiles. Because let’s be honest—you wouldn’t allow someone as ill-equipped as a three-year-old operate a lawnmower, right?
Well, credit cards are the same way—incredibly valuable when used the right way by the right people.
A great credit card is half the card itself and half the user. But what can they be worth to you? The primary reason to engage with a credit card isn’t necessarily even the spending power that can come with it—it’s the residual credit history that you build by having one. When it comes time to borrow larger amounts for major purchases such as homes, vehicles or college tuition, having a rich (and positive) credit history can improve your worthiness to lenders. Starting with good habits on a credit card can really help you go places down the road.
While not all credit cards operate the same way, all of them have some level of interest rate, terms and monthly minimum. Step one is always paying at least your monthly minimum—failure to pay that can result in more than just a late fee, but also a potential ding on your credit score. Ideally, you should only ring up as many expenses on your credit card as you can comfortably pay back monthly when the bill comes due. But the minimum can be a good backup option on the rare occasion that’s not the case, such as when you’re covering an emergency vehicle malfunction or household need.
And just like not all credit cards are equal in their interest rate, they’re not all equal in their core benefits. The initial box to check is of course to ensure that it features a competitive rate, so that you’re not racking up unnecessary interest over time. Do some rate shopping at various providers to make sure your selection hits the spot. Beyond that, rewards can be a major factor in what sets a particular card apart. For example, Sioux Falls Fed offers 2% cash back all year on gas, grocery or wholesale club purchases and a limited-time 3% cash back on all purchases during Black Friday week—the more you spend, the more rewards you can cash in!
While a credit card can serve as a great source of funds in a pinch when you need to cover something unexpected (i.e., a furnace going out, a surprise trip to the clinic, etc.), they can even be a regular budgeting tool for your household. If an excellent rewards program is in play, such as the Better Rewards Visa® from Sioux Falls Fed, paying bills, buying groceries, pumping gas and other everyday spends might be worth charging to your card. As long as you’re able to pay it off before your monthly due date, it can help you rack up points on things you’d already spend on otherwise.
No matter your need, we’ve got a solution for you when it comes to a personal credit card. Our Better Rate and Better Rewards Visa® options fit both sides of the coin—investigate your options at Sioux Falls Fed.