04/12/2017 0 Comments
3 Reasons Why You Should Have a Credit Card
Though most people use credit cards, some choose not to have one or are considering getting rid of theirs. But is it really a good idea not to have a credit card? At Fox-Miles & Associates Inc., our licensed insolvency trustees provide credit counselling in Edmonton for people from all walks of life. We've seen some of the troubles that credit card debt can cause for Canadians but we also recognize the importance of having and using a credit card wisely.
Trends in Canadian Credit Card Debt
One of the biggest trends in how Canadians are using credit cards is that they are using fewer cards overall. The number of active credit cards fell by 800,000 in 2016. However, while they are using fewer cards, Canadians are also borrowing more from the cards that they do have. The average card balance in Canada in the last three months of 2016 was $4,094, a 2.3% increase over the year before. This rise in debt levels was also accompanied by a modest rise in rates of delinquency.
The Importance of Having a Credit Card
While credit card use does come with some risks, professional credit counselling in Edmonton can help you use your credit card in a way that works to your advantage. In today's world, not having a credit card can make it more difficult to get by.
One of the most important reasons why you should have a credit card is that it will help you build a good credit history. If you have no credit history, then lenders will be far less inclined to give you a loan for a house or a car. Having good credit proves to potential lenders that you're capable of responsibly handling your finances, which indicates that you will be more likely to pay back your loan.
Credit cards also offer a more convenient and secure way to make both small, everyday purchases to large and expensive purchases, and they often provide rewards for your purchases as well. They are sometimes required for setting up online payments for cell phone and internet plans. Credit cards also often carry better fraud protection than debit cards, and they don't allow fraudsters to take money directly out of your bank account.
Finally, credit cards can be used as a last resort in emergency situations. While you always want to have a cushion of savings set aside for unexpected expenses, sometimes this simply won't be the case. If you do use a credit card to pay for an emergency, make sure you look into credit counselling in Edmonton to help you stay on top of your debt afterwards.
Get Out of Financial Stress with Credit Counselling in Edmonton
Credit cards don't have to be dangerous. It all depends on how you use them and how you manage your finances. With help from the experts at Fox-Miles & Associates Inc., your credit card can become a beneficial financial tool. We provide credit counselling in Edmonton as well as many other debt solution services tailored to your needs. Our experienced credit counsellors will review your financial situation and create a plan to help you out of debt.
To schedule a free consultation, just get in touch with Fox-Miles & Associates Inc. today.