Like loans, using credit cards can help you build a positive credit history. This can enhance your ability to receive a private student loan, buy a car, rent an apartment, get a job, and eventually, try to buy a house. Of course, there are other advantages to having a credit card including:
- Security in emergencies;
- Reduced need to carry cash or checks; and
- Enhanced personal responsibility and independence.
However, only one national card like a VISA or a MasterCard is necessary to receive these benefits.
Credit cards can be helpful in emergencies or if you are able to pay off the balance each month, but be wary! Found some cheap credit cards! Credit cards can also get you into trouble.
You hear a lot about 0% balance transfer arbitrage plays (where you get a 0% balance transfer for X months and put it in a high yield savings accounts like Emigrant Direct) but you usually don’t see many people recommending you use the 0% balance transfer to pay off anything except other credit cards. Money is money and you can pay off anything with the money from the transfer because you can have them send you a check. So why not use it to pay off things like mortgages or homeowner loan ?
