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
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.
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