Why You Absolutely Need a Credit Card

There are many different reasons why you should seriously consider getting a credit card, especially if you are a young person. These days having a credit card isn’t just a good idea, it’s pretty much a necessity.

Improve your Credit History and Score

One of the primary reasons that you should look into getting a credit card as soon as possible is that doing so can actually help improve your credit history and score. If you don’t have any credit history or a low score and want to improve it, a credit card can be an effective solution. By consistently making payments on your credit card on time, you will be able to slowly but surely improve your overall score. A good credit score can mean not having to pay quite as much on insurance products as well as loans, so it is well worth it.

Buying Online

Another reason why you should at least consider applying for a credit card is that it can actually save you money on your purchases. You can get some amazing deals online if you have a credit card. These days more and more people are purchasing things on the internet, and using a credit card to do it can save you a significant amount of money. Many websites require a credit card for you to purchase products from them, which is all the more reason to get one soon.

Emergency Funds

A credit card can also provide you with funds in an emergency when you really need to pay for something important right away. If you absolutely cannot wait to get money for some crucial expense that has suddenly come up, a credit card can be a real life saver. Whether it is a car repair, home repair or even a medical bill, a credit card can provide you with the funds you need in a pinch. A lot of people who have credit cards are glad they got one for this reason alone. The last thing you want is to have some emergency expense and no way of paying for it.

Earn Rewards

You will likely be able to earn various types of rewards just by using your credit card, such as airline miles and other things. The more you use your card, the more rewards points you will get. These rewards can really add up over time, so you will need to keep that in mind when deciding whether or not to apply for a credit card.

A Convenient History of your Purchases

If you aren’t any good at keeping track of all your receipts from purchases you have made, a credit card will provide you with a much easier way to do this. Those who have a credit card will provide you with a detailed summary of your spending each month, so you don’t have to worry about keeping track of this yourself. You can use these records as a way of establishing a monthly budget for yourself, which is very important for a number of reasons. Your credit card company will send you a statement each month with a history of your transactions that you can look over. You can even choose to have this statement sent to you via email.

You don’t have to worry about losing cash

When you have a credit card you won’t need to worry about losing your cash when you are travelling. It’s probably not a good idea to carry around a significant amount of cash with you anyway, which is all the more reason why a credit card is a good idea. If you lose your credit card or get it stolen, you can and should immediately cancel it. This way you won’t have to worry about any person who might find it using it to rack up charges.

Interest-free Money

There is a period of time between when you make a purchase with your credit card and when you pay off your card that you actually earn money, but only if your money is in an interest-bearing account. This is definitely one thing that you will need to remember.

Merchant Protection

One of the great things about buying things with a credit card is that you have merchant protection. If you purchase something with cash and the seller doesn’t come through, you really don’t have any options at all. If you pay with a credit card, you will have recourse to get your money back if the seller scammed you in some way. All you have to do is call the credit card company and dispute the charge. The credit card company will open an investigation and issue you a chargeback if they rule in your favour. Most times you can get your money back if a seller doesn’t come through for you in some way.

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