If you want to be financially responsible then there really isn’t any reason why you shouldn’t have a credit card. Credit cards can help you in so many ways and if you don’t have one then why not? Is it because you’re afraid you’ll spend more than you can? Is it because you’re scared of having your card information stolen and used fraudulently? Whatever the reason is I’m going to try and convince you that you’re wrong. Having a credit card in this day and age is really a necessity.
I don’t want a credit card because I’m afraid of fraud
If this is the reason why you don’t have a credit card then you need to quit thinking this. Yes, your card can get stolen, and yes it can be used fraudulently. However, the good news is that when you report a lost or stolen card promptly you’re not liable for any fraudulent transactions. Someone else is taking on that risk so you need not worry.
Actually, using your credit card is much safer and more secure than using your debit card. Your debit card accesses money that is actually in your bank account while a credit card is the bank’s money. Why wouldn’t you want to have a card that you can use almost anywhere to buy things and also have that kind of security behind it?
Trust me, I’ve had my credit card stolen before, and I’ve had my checks stolen, care to guess which was worse? The credit card problem was solved in a day. I called the bank and reported it and told them that 2 of my recent transactions were not done by me. They cancelled the card and sent me a new one in the mail. Done.
As for those stolen checks? Oh boy. I had someone steal my checkbook out of the mail and I was having people call me months later about checks that were being written in my name. Whoever stole them kept going to the grocery store to buy food with my checks. I had to file a police report so that I had proof for these vendors that it wasn’t me that was writing those checks.
Stolen checks are a terrible thing to deal with. It’s much easier to change credit cards than it is to change bank accounts for your checks. And even if you changed bank accounts your checks can still be used fraudulently and they still have your information on there so people will try to call you to collect when the checks bounce. When it comes to fraud, credit cards are the clear winners in protecting you.
I don’t want a credit card because then I’ll spend too much money
If you don’t want a credit card because you’re afraid of spending too much money then you really need to listen. One of the best reasons why you should get a credit card is because you’ll actually be saving money when you use it (more on that later). Not only that, but it also makes it easier for you to keep track of your spending.
If you really want to take a hold of your finances then you’re going to have to really get in there and look at those numbers. You’re never going to get ahead if you don’t pay attention to your spending. Get yourself a credit card and all your spending is automatically saved online for you to see. Then when it comes time for you to check on your expenses you can easily do it from your computer.
Let’s not forget about saving money. So how does that work exactly? Well, you get yourself one of those rewards credit cards that reward you for buying things. There’s all sorts of different ones you can get that give you different rewards. Some of them give you straight cash back on your spending (between 1%-3%). For example, Bank Of America has a Cash rewards credit card that awards you 1% cashback on everything while giving you 2% at the grocery and 3% on gas. If you don’t use a credit card you’re missing out on these savings.
Cashback isn’t the only thing you can earn with credit cards. If you travel a lot it might be beneficial for you to get a travel rewards credit card. This could be a credit card that is tied to some type of travel service, like hotels or airlines. Then when you buy things you’ll earn miles or points that you can use towards your next trip.
I don’t need a credit card because I’m good with my money and pay everything in full
Well, that’s all fine and good, but what happens when you need to borrow money for something like a car or a house? Having a long history paying off your credit card in full each month can have a great influence on your credit score. You might find that you can’t get a loan for that new home you want to buy because your credit score is lower than you think even though you always pay your bills on time.
A good credit score can be the difference in you getting that house or not. A good credit score can save you thousands of dollars over the life of your loan because it can earn you those lower mortgage rates. How do you expect to have a good credit score if you don’t have any “credit” for them to look over. You need to have a credit card with a good line of credit for them to do their credit score calculations in your favor (more on that in another article).
Without a credit card you’re just cheating yourself on that credit score you could have earned so get a credit card, and get it early, and pay it in full each month.