The economy has Americans dealing with soaring prices that are becoming too much to handle for many. Some people are turning to new credit cards as a solution - despite warnings that now may be a bad time.
But should Black consumers pay attention to the warnings?
A credit card is a great tool for building up a solid credit history. Good credit helps when taking out a loan in the future. Paying the bill on time each month also helps credit history grow.
Cash back rewards are a popular incentive offered by credit card companies. Many have no annual fee and provide a percentage of cash back on every purchase. Paying off the balance each month and avoiding going over the credit limit can add these rewards up quickly.
Lastly, credit cards can be a great safety net in the case of an emergency. With a card, there will always be some cash on hand in the now, and pay it off later when payday arrives.
Black consumers searching for a way to pay for things and build good financial habits may find a credit card appealing. Cash back rewards and having an emergency safety net are all good reasons to get a new credit card today.