Credit cards have a really bad reputation with most people. More often than not, they are seen as a gateway to mountains of debt and a bad credit rating. However there are actually some perks to having a credit card as long as you play your cards right (see what I did there?). Here are 5 reasons why you should consider having a credit card:
1) To build a credit rating- You might not care about your credit rating now however when it comes time for you to take out a loan, your credit rating is a huge factor. Starting to build a credit rating as soon as possible certainly won’t hurt. I have a single credit card but it has still helped my credit score.
2) To have extra spending money- Now I don’t mean spending recklessly. I mean in a genuine emergency. There have been months where this emergency has ranged from “I forgot my bank card and need to purchase something” or “a genuine unplanned expense” but the credit card has always come to my rescue in both these cases. Having a credit card as a back-up is great provided that you don’t overdo it. Which brings me to my next point.
3) To learn responsibility- You absolutely HAVE to be responsible when you have a credit card. Once you start owing more than you can pay, that is when the trouble begins. Try to only spend an amount you know you can cover once you get paid.
4) To have a “credit card story- Everyone has a story (most worse than others) about how they got their first credit card and what they did with it. Most of my friends warned me against getting a credit card since they blew through it like crazy and ended up in debt that they are still paying off in their late twenties. This has served as a great lesson and warning to me so I avoid making the same mistake. My credit card story is basically that I’ve had it for two years and never ever had to pay back a huge amount.
5) Swiping is more convenient- It is safer to carry a card than cash especially when you’re the only one with the pin. I usually carry my credit card when I know it’s not feasible for me to go walking around with cash on my person.
Do you have a credit card? What’s your credit card story? I’d love to know below!