3 Ways Credit Cards Can Improve Your Life -- if You Use Them Right

Credit cards can do a surprising amount of good.

Credit cards have a bad reputation, and with good reason. It's easy to end up in serious debt when you use them, and the interest costs can be astronomical.

The reality, however, is that as long as you're smart about how you use credit cards, they aren't a bad financial tool at all. In fact, they can improve your life in several important ways if you:

• Get the right card
• Use it responsibly
• Pay it off on time and in full every month when you get your statement

Not convinced? Here are three big ways that credit cards can help you out.

1. Credit cards can help improve your credit score

Your credit score affects virtually every aspect of your life. Want to live in a nice apartment? You're probably going to need good credit for the landlord to approve your application. Likewise, good credit is necessary to get a mortgage loan, a car loan, or even a cell phone or utility connection without having to make a large deposit.

Credit cards can be one of the single best and easiest ways to build credit. You can apply for them quickly, and there are cards for people who are building credit that are easy to get approved for. Once you have a card, all you need to do is pay your bills on time and make sure you keep your card balance low relative to the amount of credit available in order to start earning a positive credit record that will boost your score.

2. Travel perks from credit cards can make your trips more fun

If you have a travel credit card, you may get all sorts of advantages from it. Depending on your specific card, you may be able to access cushy airline lounges where you can relax in comfort and style as you await your flight. Or you could get free checked bags, early or late check ins at hotels, discounts on in-flight drinks and entertainment, and a whole lot more.

These perks can make your trips more enjoyable just for becoming a cardholder.

3. Credit cards allow you to earn rewards to get the things you want

Everybody likes getting free stuff. Rewards credit cards can make that happen for you. When you pay for everyday purchases with rewards credit cards, you turn those purchases into the chance to earn miles, points, or cash back. You can then use those rewards to cover the costs of trips or buy merchandise, goods, or services you want.

That means cards can turn your grocery purchases, gas purchases, and money spent on other necessities into free items or experiences.

Of course, if you don't pay off your card in full and on time, then the credit card interest you owe will likely exceed the value of rewards you earn. You could also end up damaging your credit score rather than improving it. That's why it's essential to remember that cards can improve your life -- but only if you're ready to use them wisely.

Make sure you're living on a budget and living within your means. When you're ready, compare credit cards to find the one that's right for you. Then go ahead and apply for the perfect card, pay off your bill each month, and reap all the benefits that credit cards have to offer.