Why I'm Not Afraid of Credit Cards Anymore

© martin-dm / Getty Images/iStockphoto Online shopping with credit card BY Jen Hayes ,  GOBankingRates I’ve always hated debt. W...

© martin-dm / Getty Images/iStockphoto Online shopping with credit card

BY Jen Hayes ,  GOBankingRates

I’ve always hated debt. When I started college, I took out student loans only because I naively believed that I had no other option. I thought I’d be flipping burgers for the rest of my life if I didn’t use debt to finance my degree. But, while I racked up $75,000 of student loan debt during college and graduate school, I avoided all other forms of debt. I drove an old car and never had a car loan. I didn’t use a single credit card.

As I started chipping away at my student loan debt and thought about buying a home after my loans were paid off, I knew I had to do something to raise my credit score. I want to get the best mortgage rate possible when I purchase a home, so my credit score needs to be excellent. My credit score used to be great (thanks to my student loans), but the more loans I pay off, the more my score decreases.

Still, I stubbornly resisted when anyone suggested that I get a credit card to raise my credit score. Massive debt takes an emotional toll on a person, and the idea of taking on another form of debt filled me with anxiety. But, objectively, I knew getting a credit card was a smart move financially.

I’m naturally a frugal person, so I had no reason to be concerned that I’d be tempted to overspend. I’m also hyper-organized, and there’s no rational reason why I should worry that I’d miss a payment. I went through every worst-case scenario in my mind and ran through 100 “what ifs.” My reasoning was purely emotional and had no basis in fact.

After years of hesitation, I finally bit the bullet and applied for my first credit card. I was approved for a card with a $150 sign-up bonus, consistent cash-back rewards and no annual fee. I immediately set up automatic withdrawals from my checking account so I could ensure that my balance would be paid off in full (and on time) every month. The entire process was surprisingly simple and hassle-free.

Check Out: Best Credit Cards for Fair Credit

Several months later, everything continues to run smoothly with my credit card. I’ve earned some cash back, I’ve raised my credit score significantly and I haven’t paid a dollar in interest. I’m not tempted to overspend and I only charge a small amount (usually gas) to my card each month.

I’ve learned a few key lessons from this experience. First of all, credit cards are not inherently evil — it’s how you use them that matters. For a spender, it might be hard to resist the temptation to overspend. On the other hand, someone who’s naturally frugal can use credit cards responsibly to build credit.

More on Credit: 30 Things You Need to Know to Build Credit

I’ve also learned that I need to worry less and make decisions that are based on facts instead of emotions. It’s easy to stick with what’s familiar, but sometimes I need to break out of my comfort zone and do things that make me uncomfortable. It pays off — literally!

COMMENTS

Name

Advice,3,Autos,20,Beauty & Style,14,Business,1,Career,4,Celebritys,75,Features,43,Fitness,1,Food & Drinks,15,Hair,7,Health,50,Home & Garden,10,Lifestyle,15,Money,17,Personal Finance,2,Photos,32,Relationships,17,Small Business,2,Success,1,Tech,10,Travel,38,Weight Loss,9,
ltr
item
Current News 360°: Why I'm Not Afraid of Credit Cards Anymore
Why I'm Not Afraid of Credit Cards Anymore
https://1.bp.blogspot.com/-i8_J4eXDZ0E/W9CDnmQY8YI/AAAAAAAAOIE/OcmuN_u3ahEjCvonWIZC1tIzB00m6fATQCLcBGAs/s1600/16.jpg
https://1.bp.blogspot.com/-i8_J4eXDZ0E/W9CDnmQY8YI/AAAAAAAAOIE/OcmuN_u3ahEjCvonWIZC1tIzB00m6fATQCLcBGAs/s72-c/16.jpg
Current News 360°
https://www.currentnews360.com/2018/10/why-im-not-afraid-of-credit-cards.html
https://www.currentnews360.com/
https://www.currentnews360.com/
https://www.currentnews360.com/2018/10/why-im-not-afraid-of-credit-cards.html
true
4415956731294603241
UTF-8
Loaded All Posts Not found any posts VIEW ALL Read More Reply Cancel reply Delete By Home PAGES POSTS View All RECOMMENDED FOR YOU LABEL ARCHIVE SEARCH ALL POSTS Not found any post match with your request Back Home Sunday Monday Tuesday Wednesday Thursday Friday Saturday Sun Mon Tue Wed Thu Fri Sat January February March April May June July August September October November December Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec just now 1 minute ago $$1$$ minutes ago 1 hour ago $$1$$ hours ago Yesterday $$1$$ days ago $$1$$ weeks ago more than 5 weeks ago Followers Follow THIS PREMIUM CONTENT IS LOCKED STEP 1: Share to a social network STEP 2: Click the link on your social network Copy All Code Select All Code All codes were copied to your clipboard Can not copy the codes / texts, please press [CTRL]+[C] (or CMD+C with Mac) to copy Table of Content