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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About nadlique

This blog is about the journey of a 28-year-old Malaysian towards financial freedom. This blog was started back when the blogger was 21 years old. However, his journey towards financial freedom had begun way before that. Materials such as investing, business, entrepreneurship, equities, and real estate are presented. The author also posts his thoughts and observations on life in general.


  1. riverboy says:

    Bagus kalau tau control dan gunakan secara berhemah. Tak bagus kalau ingat tak payah nak bayar balik. Pengabihnya bayar hutang tak habis habis pasal interest yang tinggi.

  2. Credit cards are also another way of tracking your spending. Instead of maintaining a personal log book/diary to track your monthly expenses, charge everything to your card and you will get a nicely printed statement displaying all your expenses. With that statement and discipline, you will be able to control your spending habits.

  3. IMHO, Debit card also could be used as a way tracking ur spending – check ur statement online (go paperless). The perks about debit card is, before you want to pass ur card to the cashier you would think twice wether its worth buying since its totally a cash transaction. You have money, you can buy. No money no talk. Bad thing about debit card, if it falls to someone elses hand. I usually put a limit of RM500 in my debit card. It acts as my emergency card. (Petrol, groceries,etc.) If you have the discipline, no harm getting a credit card. :). But, if you can’t better dont. Cash is the best way. I have a friend who used plastic card all the way. Next thing she knew, she was out of job. How lah to pay all her bills accumulated? .. But still the choice is your. 🙂

  4. natasya says:

    hmmm yup, i agree with the last statement. ‘ it’s not wise to be carrying cash’. my father made one for me. he worried with snatchers around, it is better to carry card than money. we can block the card and not losing money,or maybe lost er 80ringgit if the snatcher think to fill his tank. at least, we dont have to carry 2k in our wallet.
    most of my friends prefer debit card than credit card. hmm debit card also good i think.

    • Tracking your spending, good point. However, do you think that without physically handing over the cash, you might lose track of how much you’re spending? I guess in this case, the requirement of discipline is very important eh?

      Indeed, debit cards are good in a sense that with those, you only spend what you have, and not over that. I do have a VISA debit card myself.

  5. I think it is matter of whether you can control your own spending. If you can’t, I think it is better to get away from credit card. Having said so, I don’t think that’s the right way too. We’re suppose to be mature enough to control your own spending and of course also responsible for the consequences. 🙂


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