Do You Need A Credit Card?

There are sill a few people who do not use credit cards for anything and they may even consider them to be evil. 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. If they got into heavy debt they wouldn't want a repeat experience. 

They may have had parents who strongly taught against credit card use, perhaps after having a bad experience themselves, or they may just see no need for credit cards and the mess that goes with them.

Some people are definitely on the other side of the story and their wallets are loaded with credit cards. Very few people with multiple credit cards used frequently actually pay off their balance every month and this means that they are borrowing money on a very high interest rate.   

Have you forgotten what a dollar bill looks like because you charge so many things, or do you avoid using credit like the plague?. If you are taking the time to read this article, chances are you are somewhere in the middle, or perhaps you don’t have a credit card and you are thinking of applying for one.     

The type of personality you have and the financial ability you espouse. Everybody would love to say they manage their money perfectly, but it's just not the case.

It is necessary for you to be ready for credit, so if you have trouble budgeting your money, the obtaining of a credit card should not be your top priority. You could likely handle credit if you are on a monthly budget, buying just what you need when it is needed, paying your bills on time and putting money in your savings each month. When you have been able to keep from going into debt, it could be alright to get a credit card, but you should first of all, ask yourself why you want a credit card.

Do you want a credit card to borrow the money to live like you want to and buy what you want. In this case, you should NOT get a credit card and you also need to seriously reconsider your financial situation.        

If it is because you just want to be able to swipe your card and go when you are shopping, you can easily use a debit card from your bank the same way. The sales clerk will usually ask if it will be debit or credit and you can just sign it as with a credit card and go on, if you choose to say credit.

A credit card which earns you reward points may work for you if you are confident you can pay off your balance every month, such as a gas reward credit card. This type of credit card will be worthwhile only if you always pay off your balance each month, or you will be canceling out the amount you would receive from the reward points and will still owe more in interest charges.