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Why Would You Need A Credit Card? |
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Written by Webmaster
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Monday, 19 January 2009 |
By Alisdair Cosgrove
 Credit cards are considered to be evil by some people and they would never use a credit card for any reason. Part of the reason why someone may not like to use a credit card could be because of having had a bad experience in the past. They would not want a repeat experience if they got into heavy debt.
They may have had it drilled into their head not to have a credit card from their parents who have experienced the woes of credit cards, or they may just see no need for them and would rather avoid the mess altogether.
Then there are the people on the complete other side of the spectrum; these people have a large stack of credit cards taking up most of the room in their wallet. Very few people who have several credit cards they use on a frequent basis, actually pay off their balances every month, so this means that they are borrowing at a very high interest rate.
Do you avoid credit cards like the plague,
or do you charge so often you forget what shade of green a dollar bill is?. The fact that you are reading this article could mean that if you do not now have a credit card, you are thinking of getting one or you are somewhere in the middle.
The decision to get a credit card will likely depend on where you are financially and your personality type. If everyone could say they managed their money perfectly, it would be good, but that however, is not the case.
If budgeting your finances is troubling for you, your first priority should not be to get a credit card, because maybe you are not ready for credit. When you are able to stay on a monthly budget, put money into savings each month, buy what you need only and pay your bills on time, you may be able to handle credit. If you have been able to stay away from putting yourself in debt, a credit card might be okay, but first think about why you want a credit card in the first place.
Do you want a credit card to borrow the money to live like you want to and buy what you want. If this is the case, you should NOT get a credit card and you need to seriously reconsider your financial situation.
It is just as easy to take a debit card from your bank and swipe it when shopping, if that is your reason for getting a credit card. They will often ask you debit or credit, and if you choose credit you can sign and go just as with a credit card.
A credit card which earns you reward points may work for you if you are confident you can pay off your balance every month. These cards will only be worthwhile if you always pay off your balance, or else you'd be canceling out the amount you receive from the rewards and still owe more in interest charges.
Alisdair Cosgrove has been writing finance articles for many years and can find more of his work at the UK site CreditCardsBureau.co.uk, offering best balance transfers for UK residents and also a great selection of credit cards. Visit Credit Cards Bureau today to read more of Alisdair's great credit card articles.
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Last Updated ( Monday, 19 January 2009 )
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