We all know the scary stories about credit cards—that people rack up a bunch of debt and can’t seem to find their way out. But the truth is—credit cards are a powerful financial tool. And when used correctly and advantageously, they can actually do a lot of good for your financial status in the near- and long-term.
Here are some tips for making your credit cards work for you.
One of the most clear-cut reasons to start spending with a credit card is that it sets you up for success in capturing credit in the future—oftentimes with larger limits and better terms. After all, if you have any future intention of applying for a mortgage, an auto loan or a high-yield rewards credit card, you might need your credit history to be pretty stupendous to come out on top! So by paying your bills with your personal credit card and paying it off each month, you’re showing your creditworthiness for future investments.
As people, more than ever, rely on online purchases to keep their lives on track, safety and security is perhaps the most paramount it’s ever been. So instead of risking your actual funds by swiping or typing in the number of your checking-connected debit card, why not take advantage of a credit card and all the security measures that come with it? One of the surest ways to prevent yourself from fraud is by using a payment method that has protection built in. A credit card can make that happen for you.
All right, we get it—sometimes you encounter a credit card with a supposedly “great” rewards program and instead it’s rife with gift cards to stores you don’t even care about. Or maybe puny cash-back opportunities. That’s why shopping around for a great credit card starts with looking at that rewards program. Sioux Falls Fed happens to offer the Better Rewards Visa® Credit Card for that very reason—with cash-back, travel and gift card opportunities to keep things interesting.
One feature of a credit card program that you’re likely to see on occasion is the opportunity to transfer debts from other sources for a limited-time low interest rate. It gives you the chance to take stock of your debts, combine them into a single monthly payment and lower your payment amounts (and interest paid over time). While these are sometimes few and far between and can come with a bunch of asterisks in some cases, take advantage of these chances when you can!
Speaking of which, Sioux Falls Fed actually has a limited-time offer of this nature right now! Get your balances transferred for no fee and with a limited-time-only rate of 0% APR—find out all the details here.