Credit Cards- what you need to know…

By Sam Neumann, Financial Counselor and Lender at NCCYou

While credit cards may not always have the best reputation in regards to finances, when used correctly, a credit card is a powerful financial tool that you can use to not only to build and improve credit, but also provides numerous advantages to the cardholder. 

What is a credit card? 

A credit card is a type of revolving loan, which means you borrow money from the credit card issuer each time you swipe your card, but when you pay that money back, the credit is added back to your available balance, allowing you to use it once again. While it may sound counterintuitive to have a “loan” to pay for small purchases that you might otherwise use your bank account for, there are many benefits in doing so, such as building and improving credit, earning credit card rewards, and protecting yourself against fraud. 

Many people use their credit card for things to earn rewards, then pay it back from their bank account.

Benefits of having a credit card 

From building credit to getting rewards, there are numerous advantages to using a credit card. 

  • Building and improving credit 
    • Using a credit card is one of the best ways to build and improve your credit. Whether you are first establishing your credit or working on improving your score, using credit cards is a great way to create a positive payment history on your credit report, which is the most important factor when it comes to your credit score. 
  • Credit Card Rewards 

Being rewarded for making everyday purchases is a massive benefit to using credit cards. For every purchase you make on a credit card, you get reward points to use towards things like travel points, gift cards, cash back, and more, depending on what types of rewards your credit card company offers.

When shopping around for credit cards, be sure to take a look at the rewards program. This is money back into your pocket, and you want to make sure your credit card rewards are something that you will use. 

  • Peace of Mind – Knowing you have funds available for emergencies offers peace of mind and a financial buffer for when the unforeseeable happens. 
  • Protecting yourself from fraud 

In the age of technology, it is extremely important to protect yourself from fraud. Fraud can happen to anyone, no matter how careful you are with your information, but following good practices can make you much less likely to be a victim of fraud. One way to do that is by using a credit card when making online purchases! Since credit cards aren’t linked to your bank account like debit cards are, fraudsters aren’t able to continue accessing the funds in your account. Since credit cards will deny any charge over the available limit, you do not need to worry about fraudsters draining your bank account.

Depending on the way your account is set up, by using a debit card, fraudsters could potentially access the money in your savings account, or overdraft your account and send it into the negative

In the event that you do have to dispute a transaction due to it being fraudulent, it can take a while before the funds are credited back to you. Because of this, using credit cards provides peace of mind for instances like this – as you don’t have to worry about not having your funds available while waiting on that “provisional credit”

So, what do we have to offer you?

It is important to look at your spending habits and keep that in mind when credit card shopping. If you have had credit cards in the past and know that a higher limit may be too tempting to budget, it is okay to keep a lower limit! You want your credit card to fit your lifestyle; Luckily, NCCYou has you covered with some of the best options in the nation! With interest rates 3.1-8.1% lower than the national average, we offer a variety of options for everyone – so no matter where you are with your finances, we have an option for you! Another bonus to keep in mind: there are also no annual fees, cash advance fees, or over limit fees. 

Each of our Visa cards also offer NCCYou Rewards, a simple system that gives you 1 point for every $1.00 spent. These points can be redeemed through over 3,000 merchants in our online mall, “ShopSpot”, as well as cash back or gift cards.

Keep your eye out – sometimes we even offer double point months! AND once a year we do our 0% balance transfer special where you can transfer over those high interest credit cards (we are looking at YOU, Amazon) and pay ZERO interest for 12 months! (must qualify, call or visit for more information.)

Our Credit Card offers:

Credit builder credit card – For members with no credit score or low score, 14.9% apr*, maximum limit $500.

Our Credit Builder Credit Card is made with our younger members in mind! If your goal is to establish credit or improve your existing credit score, this is perfect for you! Similar to our Visa Classic, it offers all the rewards of a normal credit card but doesn’t have credit score requirements. 

Secured Visa – For members with a goal to rebuild credit – Secures a minimum of a refundable $500 as collateral 

Similar to the Credit builder Credit card, NCCYou also offers secured Visas! These are a great solution for members who need to rebuild credit. While it is secured, meaning we hold funds for the duration that the loan is open, it can act as a form of savings account because you get the money back so long as you pay the account as agreed. 

Classic Visa – Interest rate of 14.9% apr*, $500-$10,000 limit.

Visa Platinum – Interest rate of 9.9% apr*, $2,500-15,000 limit.

*apr= annual percentage rate, rate depends on credit

NCCYou is here to help and your financial health matters to us! Please call, message, or stop by with any questions you have!

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