Credit can be tricky and there are a lot of opinions about having it. Our opinion is similar to most of our other stances in that moderation is good and consistency with planning will take the cake.
Credit can offer opportunities. It can also cause some issues if not managed appropriately. Everyone has a different situation and yours is unique to you. We are NOT legal or financial professionals. REMEMBER this is a blog where some real folks do some real chatting about what they find.
We use credit. We like to pay it off before the monthly cycle drops and interest charges occur. We would all be wise to have an emergency fund for those things that just happen; not to have to rely on credit and then pay for using it. Some people say $1000 is a good start for the fund. Some say at least 6 months of all of your expenses is the goal [that may take awhile but a little here and there can add up].
If we use credit wisely the benefits can also add up. There are cash back reward options (that cash back can go in the emergency fund). If you are already spending money and can make it make money for you that's great. There are upfront savings options as well. You can save money by using a particular card. For example TARGET >> You get 5% off the total purchase by using your TARGET card right on the spot. Sam's Club and Costco offer additional rewards toward memberships and cash back when you use their cards too.
Ideally, if you are watching your credit report, you'll see the effects of your spending and paying habits. Our general rule is not to charge more than 30% of any credit cards overall spending limit. If your credit line is $1000 (meaning that is the most the card goes to) don't spend more than $300 . . AND pay it off right away.
There are FREE services through Credit Karma, Experian & more that let you view and track your credit changes. Some credit card providers have a monitoring system too.
Security and protection are key elements as we move forward into a more and more digital world. We shop online (some of us more than others ;) and keeping our "real" money safe (not using debit cards) is another way to utilize credit card benefits. Again, if I don't have it, I don't spend it. Think of it like this .... if I could pay cash for it now and I use my card instead I will STILL pay cash for it when I get home and pay the bill.
IF you decide to expand your credit profile, shop around. Some cards can offer introductory incentives like upfront cash back bonuses based on a certain amount of spending within a certain time frame.
Or this >> If you decide to check out Discover this link will also score us both some cash rewards. Be sure to check the fine print and fee sections. Compare cards even within the same company. They can have different levels, rewards, types and fees. We do not want cards with fees; that defeats the purpose of saving.
In the end, we want the card to work for us! We want to gain points and discounts and cash back and up front rewards and maintain our spending as if we were using cash. This can help us keep our credit scores on the rise while we save!