 TITLE: How to Rebuild Your Confidence in Using Credit Cards CONTENT: How Credit Cards Can Help Your Finances\n---------------------------------------\nMany people are intimidated by credit cards because of past experience, a friend's horror story or simply a lack of knowledge about how they work. But once you understand how your credit habits impact your credit card interest rate and credit score, you'll find plenty of reasons to ease your way back into using credit cards.\n### Good Credit Habits Build Your Credit\nThe single most important factor credit scoring models like FICO use to calculate your credit score is payment history. Making your credit card payments on time every month is vital to building and maintaining good credit.\nYour credit utilization rate, or the amount of available credit you're using, is the next biggest factor making up your credit score. Keeping your card balances low saves you money on interest while also helping you build credit. If you pay your balance in full by the due date, you don't even have to pay interest.\n### Good Credit Means Lower Interest\nWho cares about your credit? Lenders, landlords, employers and banks commonly look to credit when making a decision. That means you also should pay close attention to it. If you have good credit, you'll likely qualify for better interest rates and terms on loans and credit cards in the future.\n### Some Credit Cards Offer Rewards\nSome credit cards provide cash back or travel rewards when you use the card. You can earn your way to free hotel stays and flights, or take your rewards in the form of a check or statement credit, depending on the card. As long as you pay off the account in full every month, rewards cards can be valuable.\n### Credit Cards Help Manage Cash Flow\nAs long as you pay off your cards in full by the due date every month, you can use them as an interest-free loan when necessary. If a bill is due in a few days but you don't get paid until next week, for example, you may be able to charge it and give yourself a few weeks to pay it off before the credit card due date.\nIf you don't use a card in a given month and it has a zero balance, you still get credit for maintaining the card as agreed and don't have to make any payments. END