You have to admit, your friends have some crazy ideas, and that’s part of what makes them fun. We’re not here to tell you that we support ALL of their shenanigans, but they do have some pretty savvy money habits you might want to try for yourself.
Think about your Credit Card Friend. You know, the one that seems to bring out the plastic at every possible opportunity? You might be thinking that there’s no WAY they’re not heading for an avalanche of debt, but there are a lot of good reasons for what they’re doing.
3. The Mystery of the Disappearing Cash
Picture this: You step into your favorite store, music is playing, lights are flashing, and you’re swept up in the excitement and chaos of another holiday shopping experience. The sights, the sounds, the colors, the people!
Oh, yeah, the people. Everyone is rushing for that perfect gift. The crowds are insane. The pushing, the shoving, the stress! You lay eyes on that one-of-a-kind, mint-in-box action figure for your slightly nerdy brother and are ready to go!
Hit the cash register, dig in your pocket or purse for your cash and IT’S GONE!
NOOOOOOOOOOOO! What happened? Did you drop it? Did you leave it at home? Something more sinister?
Your Credit Card Friend knows that carrying a lot of cash is a great way to lose it. Bills get crammed in pockets, dropped on the ground, etc. but that little plastic card, as long as you tuck it away in your wallet, is a safe way to carry your purchasing power.
2. The Have It When You Need It and Pay Later Factor
Let us let you in on a secret about your Credit Card Friend - they’re not a kid anymore. They really do know that plastic is not the same as magic money and they have to pay it back. They’re probably actually paying it online, paying it off monthly or paying more than the minimum payment. And doing all kinds of smart things like that.
As long as we’re telling you secrets, here’s another: Just like you, your Credit Card Friend sometimes needs a way to get something today and pay for it later. Yes, they call it “This Time of Year” because it happens at this time every year but the holidays sometimes sneak up on us, right?
So, no matter what time of year it is, Credit Card Friend can get what they need, adjust their budget to get it paid off later, and still score you an amazing... Something. We can’t tell you that, it’s a surprise.
1. The Stuff You Want in the Future
By now you’re wondering how we seem to know so much about your Credit Card Friend and their money habits, right? Easy, we talk to them all of the time. Ok, maybe not literally THEM-them, but people like them for sure.
Every day awesome people like your Credit Card Friend ask members of the Simplicity team what they can start doing today so they’re ready to buy something major later. Maybe next month, next year, maybe in 5 years. Maybe a vacation to somewhere that sells drinks with little umbrellas, a new (or new-to-them) car, maybe a house that they refuse to furnish with couches from their dad’s Man Cave.
So, yeah, we hear about people’s dreams and we love it.
And what advice do we give them every time? If you don’t have credit, start today. Get your first credit card, use it, pay it on time, keep the balance manageable (under 50% of the available limit for sure), and that’s a great start.
If you have some credit out there and want to make it better, find out what’s on your credit report and clean up anything ugly that’s hanging out there. Look at the mix of different kinds of credit you have - credit cards, car loans, store cards, etc. - get a healthy blend of credit, and take good care of it. Instead of opening a ton of new cards to get rewards you’ll forget to use, dust off your tried and true first credit card and take advantage of the boost using older credit accounts will give your score. The lists of smart moves you can make are as unique as you are.
Ready to apply or have questions about your current Simplicity Credit Union Credit Card? There’s more info here.