Credit initiates an immediate negative feedback in our minds because owing another person or institution money is a taboo for most people. You might be itching to get your hands off the topic but credit can actually do you good if properly utilized. After learning the seven ways credit can improve your life, you might change your mindset with regards to the credit taboo.

High-Ticket Purchases

Purchasing your own car and house always involve credit unless you have the cash to pay for them. These necessities of life mostly require an auto loan or a mortgage for financing. Lenders will assess whether you have the ability to repay your loans and your credit score is used as a significant basis of your creditworthiness. If you are opting to buy a house or a car in the future then you should start building a credit history as early as possible. The only way to do this is to use credit to build a good credit rating.

The U.S. Federal Trade Commission says that a higher credit score would lead to better payment terms and better chances of acquiring a loan. As a would-be owner of a property, you should start taking advantage of lower interest rates and better payment terms by opting to use credit than not using it at all. It can lead to a big difference between owning your own property and continuously cashing out money for renting a space you don’t own.

Safety And Security

Making purchases with your credit card makes it relatively easier to steer clear of losses due to fraud. Fraudulent uses of your “debit” card would result to immediate loss of money from your account. Debit card fraud can lead to bounced checks and late payments due to insufficient fees. This consequently lowers your credit score. Your worries are aggravated by the lengthy process of transaction reversals. Restoring money to your account will also take a while as the bank holding your account will have to investigate thoroughly on the matter.

Fraudulent use of your credit cards on the other hand doesn’t equate to an immediate loss of money. Notifying your credit card company is the first step in this case. You don’t need to pay for the fraudulent transactions while your credit card company is investigating the matter.


The University of Nebraska says that using credit cards is more convenient than carrying a huge amount of cash. Your credit transactions can be used as a record for your purchases thus enabling you to take note of your expenses. Emergencies are conveniently handled through credit cards because unexpected costs such as hospitalization and car repairs can be paid immediately through credit.

Universal Purchasing Power      

Traveling to foreign countries requires the use of credit cards. Most, if not all, foreign merchants do not accept debit cards for payments. Using credit cards in foreign countries allows you to carry less foreign currency thus saving you the effort of changing your country’s currency to another. Credit card companies automatically convert foreign currency payments to your currency’s denominations based on the current exchange rate.

Rewards And Bonuses

Credit card companies provide rewards and bonuses to their users. Visa provides certain rewards such as cash back, airline award travel, gift cards, and hotel points to their consumers. Each credit card company provides varying bonuses to their clients based on a variety of factors such as card type. These rewards and bonuses can actually help you save minute amounts of money which consequently leads to larger savings in the long-run. The positive feeling associated with the rewards can also boost your state of mental and physical health.

Student Loans And Business Funding

Using credit is the only way to build your own credit history enabling you to get credit for your budding business. Opting for your kid’s student loan is only made possible with a good credit rating too. Credit helps you build you and your child’s future especially when it comes to education and being your own boss.    

Internet Purchasing Power

Most deals and exotic items can be found in the Internet. Items only available in certain countries can also be delivered through your doorstep by making Internet purchases. Credit is the most available way to purchase items through the Internet most of the time. Using credit to purchase online can save you a great deal of money helping you avoid transportation costs while providing you a variety of discounts on items found on retail stores.