There are clashing opinions about the importance of having a credit card. Some see it as a huge responsibility that can become a burden. Meanwhile, others see it as a tool to purchase and achieve more incredible things in life.
Getting a credit card and paying dues on time can get you a good credit score and credit history. It can also help you get your dream house or dream car. But why are so many people afraid of the responsibility a credit card entails?
Why Get a Credit Card?
There is a common misconception that credit cards are a liability. While this may be true for some cases, there are still many enjoying the benefits of having a credit card. Here are several advantages of credit cards that will make you think again about getting one.
Borrow Safe and Easy
A credit card will allow you to buy products or services even if you don’t have the cash on hand. You only have to swipe your card and enjoy what you purchased at the moment.
Although the saying “buy now, pay later” is pretty famous, you must always be punctual with your payments. This is to avoid any increase due to the card’s interest rates.
Build a Good Credit History
Having a good credit score and payment history is essential when it comes to applying for huge loans. If you plan to buy a car or a house through a loan, a good credit card history will help you get them.
Keep Your Money Safe
Having a credit card will keep you from carrying loads of cash with you whenever you go out. Aside from that, some credit cards provide insurance that will let you get your money back if you lose the product you bought.
Develop Discipline and Responsibility
Owning a credit card means having the freedom to buy whatever you want. But as the famous movie line goes, “with great power comes great responsibility.” So, having a credit card means you should have the self-discipline to avoid irresponsible spending.
How to Decide When to Get a Credit Card
A credit card is a hefty responsibility. An irresponsible individual with a credit card can quickly tank their credit score. They can also get themselves into bad debt. So, below are several things you should consider before deciding to apply for a credit card.
Your Financial Attitude
One of the first things you should look into is your financial position. Be wary of your spending habits and know the reasons why you are applying for a credit card. If you are only thinking about unlimited spending, owning a credit card is not for you.
Credit Terms and Agreement
Getting a credit card is a lot more complicated than swiping your card and paying for it later. Credit cards have interest rates, credit limits, fees, and penalties. Do your research and compare which card works best for your lifestyle.
Ease of the Application Process
The application process for a credit card differs from one bank to another. Applying may be easy. But, the verification and approval process will take some time.
Online applications opened the door for a faster processing time. Some banks offer quick online applications that they may approve or disapprove within minutes.
Bottomline
The responsibility of having a credit card may be daunting. But, there is no mistaking its notable benefits. If you are an accountable adult, do not be afraid to apply for a credit card and start building your credit score.
If you are still undecided about this and need some fast cash, apply for a payday loan instead. Now, online lenders provide a quick application and an instant decision process. This will offer you an immediate respite to your urgent financial needs.
