5 important benefits you miss out if you don't have a credit card

Duran Mueller
Jun 20, 2007
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If you look around you will definitely find some people who have spent their entire life without using a single credit card and they have done it comfortably. Using just plain cash or debit cards they have managed to carry out all their financial transactions. They can inspire you to think that credit cards are not at all necessary. But wait, what did they miss out? Here are few things.

Building Credit history

Credit history is a thing which is becoming an essential part of our life. It's definitely good to spend cash and live on debit cards and thus do not accumulate any credit card debt what so ever, but this will not help in building any real credit history. Imagine a situation when you need an urgent loan or that great mortgage offer, the lenders will immediately ask for your credit history. So, having a credit card, using it wisely and repaying on time will definitely help in building a good credit history. Lenders look for people who are good at repaying debts, and give them their best rates. Keeping a credit cards and repaying it on time gives lenders the necessary confidence and helps you get money when needed.

Get rid of cash carrying hassles

Credit cards or 'plastic money' as they are known, eliminates the need to carry cash altogether. You can pay all your bills, shop and even get ready cash from ATM's with your credit card. So, if you have a credit card, it can replace the bulk in your wallet and make it light and convenient to carry.

Ready credit limits

Depending on your credit history and financial situation credit cards have credit limits associated with them. Thus when you have a credit card you essentially have a pre-approved loan up to that credit limit. This is big convenience. Imagine when you fall into a sudden medical emergency and you have huge bills to pay, a credit card with a good credit limit instantly rescues you from this grave situation. How else could you pay that bill without borrowing? And if you went to borrow money in such a situation would you get it so easily? Think over it.

Convenient online and offline shopping

The best deals on many things especially in the shopping season are found on websites which sell online. Credit card is their preferred mode of accepting payment. Without having one you could miss out on the convenience and savings that online shopping offers. Most of the offline vendors also accept credit cards happily. Shopping both online and offline becomes a breeze and you are done with just a swipe.

Great rewards

If you fly frequently there are credit cards which reward you for spending money on your air tickets, the rewards are free air travel, hotel stay, priority bookings etc. Similarly, there are gas reward cards, student reward cards, cashback credit cards, travel reward credit cards, store reward credit cards, health reward credit cards and the list is endless. The idea is to reward a customer who spends wisely and repays promptly.

When you look at it from this angle credit cards are a very lucrative option. The benefits they bring, and convenience they offer are simply too great to overlook.