Why do I need a credit card?

Having credit cards in my name is very dangerous. I’m sure a lot of you would agree with me.

But why would I consider having a credit card in the first place? Well, based on what I read and what I know, there are a few reasons actually.

1. It’s a way to build up my credit rating/history. As all of us are aware of, a good credit rating is important for a person to secure future loans (e.g. home loan) and etc.

2. For absolute emergencies. Note the word ABSOLUTE.

3. If I’ve got strong money discipline, then I will be delaying my payment until I receive my statement (without incurring any interest charges) at the end of the month. Now, the money can stay in my interest-earning (or dividend-earning) account much longer. However, one needs to make sure to pay in full by the due date or they’ll incur interest charges (which defeats the whole purpose).

4. When it’s not wise to be carrying cash.

Do share your thoughts below yeah? Do you reckon credit cards do more bad than good?

P.S. If one does not have any discipline whatsoever in managing money, having a credit card can be the worst decision in his or her life. One will be throwing oneself in a bottomless well.


Disclaimer: This article is not a specific nor general advice on managing or investing your money. This article does not constitute a recommendation nor does it take into account your investment objectives, financial situation nor particular needs.

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