Financial Feminist
Financial Foundations #4: Building Credit & Utilizing Credit Cards
Oct 5, 2023
Learn how to effectively use credit cards to build a healthy credit score and take advantage of perks and security measures associated with credit cards. Explore the importance of credit utilization, debunk credit card myths, and avoid common mistakes. The podcast also provides homework tasks for listeners and mentions State Farm as a sponsor.
21:22
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Quick takeaways
- Responsible use of credit cards, including paying off the balance in full and on time, is crucial for building a good credit score and avoiding unnecessary debt.
- When choosing a credit card, it is important to consider options such as student-based credit cards, secured credit cards, or general cashback cards with no annual fees, and to only make purchases that can be affordably paid off in full each month.
Deep dives
Importance of Using Credit Cards Responsibly
In this episode, the host emphasizes the importance of using credit cards responsibly. Credit cards, like any tool, can be beneficial when used correctly. Responsible use means paying off the balance in full and on time. Failure to do so can result in late fees and interest charges, leading to credit card debt. The host shares personal experiences of using credit cards to accumulate rewards such as free travel and cashback. Building a good credit score is crucial for obtaining loans and getting lower interest rates, and responsible credit card use is a key factor in achieving that.
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