Credit Cards are an enigma. I googled the word enigma and the results yielded the following, “a person or thing that is mysterious, puzzling, or difficult to understand.” What better definition to describe credit cards. A picture of a credit card should be placed right below the word enigma if you were to ask me. Why credit cards are hard to understand is another blog post for another day. The purpose of this post is to highlight three benefits of having at least one quality credit card handy at all times. The following are examples to use when you already have or will soon have the money to purchase what you want. All can be found in my book B.R.O.K.E.: Six Keys to Building Wealth.
Last week Equifax, the oldest of the three big credit bureaus was breached impacting nearly 20% of its consumer base totalling 143 million people. Large data breaches have occurred more frequently over the years. Back in 2015 Anthem Health had a breach that affected over 80 million patients, Ebay suffered attacks to 145 million customers in 2014 and Target fell victim to $3 billion in losses due to hacking in 2014 also.
Have you ever thought about the true cost of items purchased with debts instruments such as credit cards and/or loans? The reality is that most people never give it a single thought. Two things that have the biggest impact on the true costs of these items are interest rates and APR or the annual percentage rate. First let’s define the two terms.
There will come a point in time when a bill or two happens to get paid after its due date. Even the most fiscally responsible person may make a mistake and pay a bill late. This can simply come down to forgetting due to your busy schedule or perhaps you are dealing with tight times and you downright did not have the funds to make the needed payment. Do you understand the ramifications of making a late payment. Additionally when is a late payment considered “late” in the eyes of the credit bureaus?