Ok. How to use your credit for Good thing?
Build up your credit score. In order to build your credit to prove your creditworthiness to potential lenders, you need to use credit responsibly and consistently.
Use credit in an emergency. While it always is best to have a savings fund set aside for emergencies, credit can be used when an unexpected expense arises and you have no other option.
Consolidate your debt. You can use a loan or a credit card to consolidate multiple debts into one so that your finances are simplified.
Shop securely online. A credit (or debit) card is nearly essential for online shopping.
Track family spending with credit cards. If each family member has his or her own credit with which to make purchases, you can figure out exactly where your money is going and how you might be able to cut back.
Turn a credit card into a low-interest loan. If you have a credit card with a low interest rate attached, then you might consider using it to fund a somewhat large purchase that would require another loan anyway.
Use a loan to make a big, necessary purchase. If it was not for credit, most people would never be able to buy a house.
Use a credit card for safety. Especially when out of town or planning to make a large purchase, a credit card eliminates the need to carry around large sums of money.
Use a credit card for convenience. Especially when out of town or planning to make a large purchase, a credit card eliminates the need to carry around large sums of money.
Make a purchase that appreciates in value. A mortgage loan is considered a “good” debt because homes generally appreciate in value over time.
Earn rewards or cash back. You can get something in return for the purchases that you make anyway if you put them on a credit card with rewards. In fact, you might even want to volunteer to put others’ purchases on your own card – so long as you trust them, of course.
Take advantage of 0% APR. If you have credit card debt that you would be able to pay off if not for that pesky interest, then consolidating your debt onto a new credit card with a low introductory APR might be just what you need.
Take advantage of tax breaks. Some types of debts, such as mortgage loans and student loans, allow you tax breaks.