‘’Sometimes it’s not about the money, but rather the process of managing the money.’’

There are a lot of mixed feelings and reviews about credit cards. Some people have spent countless hours, energy and money trying to prevent the public from falling into a “credit card trap” which is partially understandable. However, according to financial experts, this is not the case, when credit cards are used wisely, correctly, and for your benefit!

Research shows that when used wisely, for healthy debt, credit cards can become an ‘’invaluable financial tool’’ that offers ongoing benefits…  

So, if credit cards are being used for healthy debt, like you would use your regular debit card, where you only pay for all the usual things you budget for with your current income, and if you pay it in full at the end of the month, having a credit card can positively impact your overall financial state.

Remember, if you ensure you pay it off at the end of the month, so you do not have to pay any interest, and don’t spend on materialistic items that you do not need, here are four reasons why you should start using a credit card, wisely!

1.Credit cards help you to build or improve your credit score.

If you are interested in buying a home, car, or one day want to take out a business loan, one of the first things that will be checked is your credit score.

Using a credit card, wisely, will enable you to make greater purchases (e.g. car) with lower interest, which will be very useful in the long run. Keep in mind, it will take time to build your credit and show you have been responsible with payments over months and years, so using a credit card is a great way to start!

2. Credit cards offer insurance.

Most credit cards offer different types of insurance, which can save you money while you travel, rent a car, or replace a product, and they offer you security as well.

For example, if you buy an item that is damaged or isn’t delivered and you were still charged, credit cards serve as a form of protection. In such circumstances, when making larger purchases, it is beneficial to purchase items with your credit card, rather than your debit card.

3. Credit cards sometimes offer great 0% interest options.

Most credit cards offer a 0% interest introductory offer, which us usually valid for the first year, and sometimes more!

Using a credit card during a 0% interest period is a great tool to use as balance transfers, if you do have any other debts with high interest to pay off, and want to start fresh. It can also be used to cover business innovations or improvements.

4. Credit cards have excellent perks.

All credit cards offer perks, some vary depending on whether you would like to use rewards as cash back, travel miles, and more. Some cards offer incredible signup bonuses, rewards opportunities, and/or a points scheme, and you can decide what you would like to redeem your points for.

If you are interested in learning more, ERPS Group is a one-of-a-kind financial firm located in Metro New York City that offers a differentiated approach to helping people to achieve enduring financial results. They offer effective strategies that help to bridge the gap between financial freedom and personal or business goals.

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