Many people might be in favor of having credit cards because their lifestyle forces them to possess one. But for some, it should be well decided on whether or not it should be acquired by an individual. Here are things that you might want to learn before you decide to possess a credit card just like anybody else.
Building Credit History
Some people might have some misconceptions about credit cards. They think that it can build their credit history. Others even think that it can provide them with the ability to pay their debt in time. On the contrary, you don’t have to acquire credit cards just to build your credit. In fact, this can lead you to spend more than expected and even max out the credit card. This might even lower your credit score.
Availability for Online Shopping or Car Rental
Many people might be right in the past regarding the use of credit cards. However, it can now be possible to use debit cards when shopping online or renting a car. In fact, debit cards can equally be used instead of a credit card. This is in the exception of spending money that you don’t have.
Credit Cards for Emergencies
Even without credit cards, you can still set up a fund for emergencies. You can set aside a total of not less than $1,000 to begin with. This will practically be able to help you handle any emergency that will come your way.
Saving Money on Purchases
Most stores promise discounts when you use a credit card when shopping for stuff. But these stores offer cards because they can earn a lot more when they provide people with credit options like this. In fact, they can gain more on interest than they actually do on discounts they offer their customers.