Depending on who you ask, credit cards are either a yes or a no. For those who think that it is a necessity, their reasons may vary from convenience to social status. On the other hand, people who don’t believe that credit cards can ever do you any favor but bury you in debt, will come up with a million reasons why they don’t need it. But for the sake of those who are contemplating whether to get one or not, here are some reasons why having a credit card is good.
Here are some reasons why having a credit card is good.
01 It can improve your credit score.
Your credit score holds the key whether the lending company that you will try to borrow from will approve your application or not. These companies base their decision on whether a person is able to pay in the credit score that they have, if they see a low credit score, then they will be reluctant to lend that person money because the person may not be able to pay regularly. Similarly, if you don’t have an existing credit score because you never had a loan and you never got a credit card, then the lending company will have no basis on whether they can trust you to pay or not. In a sense, having a credit card is good for your credit score, just make sure that you take care of it and pay regularly.
02 You may not have any other way to pay.
Some companies especially in other countries are only accepting major credits cards as payment to their services. Certain circumstances may also call for credit cards like when you are in another country and there are no money changing stations in sight. You’ll have an advantage when you have a credit card in times like these.
Some hotels and airline companies also accept advanced booking only through credit cards. So if you plan to travel in the future, it will be wise to consider having a credit card.
03 You can be rewarded.
Yes, you read that right. Some credit cards offer rewards when you spend using their cards. It is their marketing strategy to make you spend your money for something that they offer you. Sometimes they offer miles that you can use for travel. So when you spend on things, it will be ok if you know you can pay on time and you know that you are getting something else in return. It is not that heavy in your feelings.
Having a credit card is not as bad as it may seem. It only does take a lot of discipline and self-control. But once you master the right formula to spending wisely, you’ll be ok.