Credit cards can be both a blessing and a curse. While they offer convenient access to credit, the lack of financial discipline can end up costing you significantly more in interest and fees than if you had paid with cash. However, utilizing credit cards with care and understanding the facts can actually result in a number of positive benefits.

For starters, having credit history is required for many purchases and financing opportunities. When you use credit responsibly, your credit score is likely to rise as a result of the positive payment history that you have established. A better credit score means you are more likely to be approved for a loan, have lower interest rates, and secure bigger lines of credit.

Another advantage to using credit cards is that it helps to build an emergency fund. If in an emergency you do not have the cash on hand, a credit card can be a lifesaver. With some credit cards, you can get a grace period of up to 45 days to pay off the balance without accruing interest. This gives you time to find the needed funds without incurring any other penalties.

Furthermore, when you use credit cards, you are eligible to receive rewards. Many credit cards will offer things such as cash back, free travel, or discounted services. These reward programs can be a great way to offset the expenses that you have already incurred, or defray the costs of purchases in the future.

Finally, having a good handle on your credit card debt can help you to maintain other financial goals. By only spending what you can afford, you can ensure that your payments are made on time and you don’t have to worry about falling behind on your bills. This will also enable you to have additional funds for other investments such as retirement or savings.

Understanding the facts about credit card debt can help you make smart financial decisions and use your credit cards for their intended purpose- to supplement your current cash flow and help build your credit. By using credit responsibly and reaping the rewards associated with your good credit practices, you can benefit from having access to credit in an emergency and be able to achieve your other financial goals at your own pace.