Reasons Why You Need to Open a Credit Card
In the world, credit cards receive a bad reputation, effectively leading to today’s negative connotation that surround them. The reality, this reputation can be attributed to the poor management and responsibility of people who have opened credit cards and poorly budgeted their personal finances. While this may seem harsh, it’s the truth. Credit cards can be, when handled properly, one of the most beneficial assets and tools available to you. As credit cards are consuming consumer culture, we are here to say that these pieces of plastic are not the enemy: poor budgeting and financial management is. If you can learn to make credit work for you – it will transform your life. Today, we are going to offer a different perspective than what people typically say: we are going to share 5 different reasons why you need to open up a credit. However, we will mention that, if you do plan to open a card with any credit company, be sure you a ready, dedicated, and disciplined to handle the responsibility of swiping plastic.
One of the main reasons why anyone should consider opening a credit card has nothing to do with spending any money. In fact, one of the best reasons, and biggest motivating reasons, to why anyone should open a credit card is for emergency purposes. It’s a great decision to open a credit line that is only used for emergency purposes, meaning the credit holder will not use the card, or any of the money on it, for anything other than emergencies. Some people who do not agree with this say that having a savings account is a smarter choice. While having a savings account is a SMART choice, only having a savings account limits you to the amount of money you have a one period of time. Yet, if your car breaks down on the road – how are you planning on handling that? What if you have not saved enough money to pay for the maintenance or anything like that? In any emergency, a credit line can prove more beneficial than one imagines.
2. Establishing Credit
In the world we live in today, everything is almost run by credit. If you are planning on purchasing a home, you need credit. If you are planning on purchasing or leasing a car, you need credit. If you are planning on renting an apartment, you need credit. Are you catching the trend? One reason why you need to open a credit card is so that you can establish a stronger credit history and stronger credit report. As we said, the world is driven by credit and, the lack of credit, means no loans or credit for you. The best way to build credit is to start with small credit cards – with small limits. Now, we understand that some people are skeptical or unsure if they can even get a credit card with poor or no credit. What you need to do is the research and find a company that is willing to help you – there are dozens. If you can’t find a credit card company willing to open a line with you – try a secured credit card with a bank or credit union.
3. Traveling Rewards
One of the most exciting benefits of opening a credit card are the rewards that come with it. Today, credit card companies have unique credit cards that offer consumers traveling benefits. We are talking about swiping credit cards to earn points and miles to travel and book your next vacation. In our opinion, this is easily one of the best reasons why anyone should open a card. If you are a responsible credit card user, you might find yourself purchasing hotels or airline tickets without having to pay a penny out of pocket! Now, these credit cards tend to have higher rates and variables, meaning you must do proper research and read the fine print.
4. Online Shopping
More than ever before, online shopping has become the next big thing. No longer are consumers heading to wait in long lines to find the best gifts – people are heading to online stores, avoiding the lines, and select “one-click” check outs. However, if you don’t have a credit-card, how are you planning on doing any online shopping? Well, if you have a gift card you can, but that’s a one-time deal! If you want to join the Amazon craze, it’s time to find a credit card that speaks to you. Even Amazon offers their own designated credit card to help out consumer. Also, shopping online with a credit card is one of the safest decisions as well – much safer than using a debit card. This is a known fact that has been proven time and time again.
The last reason why it’s time to consider opening a credit card is because of pure convenience. Our culture today is driven by convenience – the easier and simpler the better. With a credit card, it truly makes life much easier for the consumer. Holding cash or counting quarters is a thing of the past – plus it can bulk up any wallet or purse. By opening a credit card, you can minimize the counting and simply begin shopping with plastic – or, if you are driven by technology, you can shop with your watch or cell-phone. Credit cards are simply more convenient and quickly becoming the preferred method of payment by nearly every merchant in the United States. They are not only safe – but they are catered to protect you and your private information.
Credit is the Future
Whether you wish to deny it or not – credit is quickly becoming the preferred payment method across the United States – and the world. In fact, you can ask may store owners, and they will say how much easier credit is for their company. Counting cash and coins leaves room for error, and can also take up a lot of time. With credit, you are looking at convenience and a whole new world; like online shopping, traveling for free, and so much more. Remember, if you are motivated to open a card after this article, be smart about. Be dedicated and disciplined and don’t allow the stories of others cloud your perceptions.