3 Solid Reasons to Incur Credit Card Debt

Building up credit card debt is not something that typically sounds like a solid financial decision. In most cases, you want to avoid accumulating credit card debt because it can really add up in a hurry. If you get too much of it, it can ruin your financial life. However, in certain cases, it may be to your advantage to use credit card debt. Here are a few times that it might be a good idea to use plastic.

1. Building Credit

The best reason to ever use a credit card is to build up your credit score. Building good credit is all about having an account or two and paying them faithfully. If you ever hope to use credit to buy something large like a house, then you will need some sort of credit history. Getting a credit card is relatively easy and they will start you off with a small limit. From there, if you pay off your balance each month and use it carefully, it can help you build good credit. Avoid getting large balances and you will be in good shape.

2. Emergencies

Using credit cards in case of an emergency is something that many people do. Every year, some unexpected expense tends to come along. Whether it is a medical condition, a car wreck, or some other expense, a credit card can help you cover your bases. As long as you do not keep balances on your credit card regularly, you should be fine in case of an emergency. As long as you can pay it back in a reasonable amount of time, this can be a solid strategy to use. If you need money quickly, a personal loan is usually not the answer. Credit cards are easy, convenient, and available when you need them.

3. Travel

Some people have to travel frequently for their businesses including taking a lot of flights. If this is the case, it will probably be to your advantage to use a credit card with frequent flyer miles or a reward program. Throughout the month, make your day-to-day purchases on a credit card. Then when it comes time to take another flight, you may have accumulated enough points to get a free flight. This strategy should only be used for those that are good with their money. If you feel tempted to rack up all these purchases and then only pay the minimum payment, stay away from this strategy. It will not work otherwise. The interest that you pay on the balance will be much more than the plane ticket that you will get.

4. Infrequent Paychecks

Credit cards can also be used for those that do not get frequent paychecks. Sometimes people only get paid once a month or quarter. In those cases, it can be beneficial to put all of your day-to-day purchases on a credit card and receive some kind of cash back reward. Then when your paycheck comes in, just turn around and pay the credit card balance off immediately.


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