The financial world can be difficult to navigate without background knowledge of the many aids available to consumers. For this reason, many young bankers steer clear of credit, but building and using credit is nothing to shy away from. All it takes to secure a healthy relationship with credit is an understanding of what it is and a general understanding of when it is best to use it in place of debit or cash.

To put it simply, credit cards offer a small loan to the cardholder for whatever expenses they deem appropriate. Every loan has interest, including credit cards. This may make using this product less appealing to this who are trying to avoid getting into debt at the hands of high interest.

Credit cards are not a bad thing, but they should not be used without rhyme or reason in order to build up a good credit score.

• When making transactions that put a hold on the card, such as renting a hotel room or car.

Using credit in this situation allows you to have a form of payment for the rental without the risk of receiving a nonsufficient funds fee.

• To make use of rewards offered by the institution, such as cash back or benefits on purchases such as gas.

Members with these types of rewards will benefit from these features, so it is in their best interest to use their credit card. BrightStar credit cards come with the added benefits of NortonLifeLock^TM Identity Theft Protection, travel benefits, accident insurance, auto rental, and luggage insurance at no extra cost.

• To avoid debt or to stay within a budget.

It is important to be aware of how much money is available to you in order to avoid receiving an overdraft fee from the institution and possibly even the vendor, but keeping a budget with a debit card is much easier and doesn’t allow for the impulse to spend.

• When purchasing from a small business.

It is likely that small businesses must pay to process transactions made with a credit card, often the reason as to why there is a minimum amount set for those purchasing with credit, so using a debit card will end up making transactions easier for both parties.

In the end, it is your decision on whether or not to use credit or debit in a given situation. A good rule of thumb is to have both a debit and credit card on hand to be prepared for whatever financial decisions may take place throughout your day.