You are probably wondering if this can be true. Yes, your Boon credit card can be a very powerful and useful tool to help you manage and improve your overall financial picture.
You have probably heard sentiments about credit card firms leading their holders into debt traps that takes years to recover from. However, it is important to note that the challenge with getting into debt is not about credit cards but financial indiscipline that often lead some credit card holders to incur stiff penalties and charges. The truth is, credit cards can help your finance improve in very meaningful ways.
Yeah! You heard that right. Credit cards help your savings especially for scheduled spending. For example, it’s a new year and you have listed out your plans for the year. A key scheduled spending you have is to go on a trip to the Maldives (or Santorini 😉 😉) this summer. You can either save for the summer trip, knowing fully well you must deal with increased ticket prices because you are buying close to your trip dates, or you put it on your credit card and buy cheap early on. You can pay back at your convenience and get some savings on ticket fare. The same thing goes for your hotel bookings or events you have scheduled ahead like seeing your favourite European team play live (GGMU 😁).
Additionally, Boon credit offer cash backs on spending done on your card. This could range from 1% to as much as 3% which could translate to significant cost savings at the end of the year for you.
Naturally, your credit card does not only help improve your finances, it also helps you plan your spending and you can save more when you use it responsibly. Your credit card helps you make and execute your plans without having to wait and give up on them. You get to save more when you make your plans ahead of the due date and this improves your savings.
A healthy budget is important. However, it is difficult to stick to a budget if you do not track your spending. Boon credit keeps a log of all your transactions, so your credit card is a good way to track your expenses over a period. Tracking all your expenses is an essential step to meeting your savings goals and steering clear of debt.
Additionally, your credit card comes with daily spending limits that helps you to resist the urge to splurge. That way you can keep a lid on your daily expenses.
Securing your financial and personal data is an ongoing concern. Do not trust anyone, whether on the phone or via text messages or email claiming to be from a bank or other financial or government institution. Although if someone gets a hold of your credit card number and attempts to make unauthorized purchases, your credit card company might alert you to that fact and stop those transactions from going through. This could lead to you investigating further to ensure you are not a victim of identity theft.
Credit cards gives you a consistent credit footprint because your credit card issuer reports your transactions to credit bureaus. These bureaus use this information to calculate your credit score. The sweet deal here is that credit card users do not incur interest expense on transactions if you pay back before your billing date. This way, you keep a good credit score. Pay backs accounts for the largest portion of your credit scoring process. Increasing your credit score can help you secure lower interest rates on personal loans, auto (car) loans and even a mortgage.
A side note is your credit card provider might even offer you a better interest rate if your credit card score is really good.
Using credit cards strategically could do a lot of good for your finances. Most of the important finance/money habits are built over time - Saving, investing, and cutting back spending, among others.
In summary, responsible credit card usage can build your credit and improve your finances as a credit card user and will likely save you money next time you purchase a car or other high-end purchases. Keep track of your credit card records and just have an overall spending discipline.
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At Boon, we provide easy access to revolving credits with generous limit. We intend to launch soon, join our waitlist and be the first to know.
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