Why You May Want to Change the Way You Pay
From a good credit score to earning money back and more...
If you are one of those who still mainly pays with cash or check, AARP magazine recently shared some information on why you may want to change the way you pay.
For your credit score. Older people tend to have higher credit scores but if you paid of all your loans and seldom use a credit card you could eventually become score-less. Which would make it harder to qualify for a loan or even a cellphone plan. They recommend using a credit card from time to time and just pay balances in full each month.
Some worry using cards or apps because they worry about security. But, they say the opposite is true. The popular e-payment tools come with multiple security features that combat fraud and diminish risk and if a thief does gain access to your card, it can be stopped through their fraud-detection system. Also, it may be more secure than checks as if someone steals a check and alters it, that comes directly out of your banking account and harder to recoup.
You may be missing out on free money…up to 5 percent of what you’re spending. Many credit cards have rewards programs that earn you cash back on all your purchases, or points that can be converted into free hotel stays and flights. That’s for purchases in person, online, or through an app…the digital wallet. The important thing to note here…to pay your balance in full each month.
Once you get used to digitial payments they’re more convenient. It takes just seconds now to make a purchase. You don’t have to fumble for change. You can also send money to anyone quicker and pay bills with the cash apps and get confirmation codes within seconds and if you lose your wallet…the cash is gone, but cards can be replaced.