iQuanti: You may not think that your daily credit card usage is tied to your financial future, but you'd be surprised to learn that the two are more connected than you think.

Opening and maintaining a line of credit can open the door to even more financial opportunities down the line. In this post, we'll talk about how to get a credit card to develop responsible credit habits that can guide you down the path to financial freedom. 

Builds Your Credit History

Every time you make a payment on time and above the minimum, the credit card company can potentially record that as a positive mark in your credit history. The culmination of all these good actions might ultimately help determine your credit score (also known as your FICO Score).

While your credit score might not seem like a big deal while you're young, it can have a profound impact on things in the future such as:

• Buying a car
• Applying for a mortgage
• Refinancing your mortgage
• Insurance products
• Even some job prospects

The more you can do to keep your FICO score in good or excellent standing, the better your overall financial health could be.

Access to Better Interest Rates

Part of building a good history is understanding the impact your score might have on the interest rates you would possibly be offered. Just because the mortgage rates that might be advertised in the media are 4.0% or 5.0% doesn't necessarily mean that this is what the lender would give you. People with good or even fair credit scores might still be approved but with an offer that comes with a higher rate of interest.

Depending on the terms of the loan, this can make quite a difference over time. For instance, consider two people taking out a 30-year fixed-rate mortgage for $250,000.

• A person offered a 4.0% APR will pay $1,194 per month and $179,674 in total interest over the life of the loan.
• Another person offered a 5.0% APR will pay $1,342 per month and $233,140 in total interest over the life of the loan.

That's a difference of $148 every month and a staggering $53,466 more in interest! This just goes to show that having a good credit history and a high FICO Score can translate into real money saved.

Reinforces Having a Good Job and Low Debt

Before a credit card company approves your application, you might need to demonstrate that you have:

• A job or steady income source
• Low level of debt
• A relatively clean financial history

In general, these prerequisites are qualities that you should strive to have anyways as the foundation for good financial stability.

Instills Life-Long Financial Habits

Perhaps the most important aspect of using your credit cards wisely is that you'll develop the right habits to conquer the rest of your personal finances.

There's something to be said about:

• Making your payments on time
• Trying to avoid carrying a balance so that you won't be charged interest
• Understanding that your credit limit is finite and staying within your limit

Perhaps the most fundamental characteristic to be taken away from all of this is responsibility. People who can manage their credit lines are more likely to also be better at budgeting their money, saving for retirement, and investing for the future. Ultimately, these become the pillars that can lead to sustainable financial freedom.