Let’s start with this question: do you need a credit card? That’s an interesting credit card question, isn’t it? The key word here is need. NO, you don’t need a credit card. Credit cards haven’t been around forever. People survived without them in the past and we can do so today!
But, are there reasons you should consider having a credit card might be better question to explore. Thinking about this a little bit, there are definitely many reasons you shouldn’t and some pretty good reasons why you might want to have a credit card.
Before we explore these, let me share my credit card philosophy. I don’t take the extremist view as Dave Ramsey and others who avoid credit card usage all together. At the same time, I don’t think there are any issues with always using cash or debit. I just don’t think a credit card is a bad thing to have if you manage it properly.
The problems are always presented when credit cards aren’t managed well, And to be frank, it’s easy to be tempted by them from time to time. You know how it goes…oh; I’ll just pay for it next month when I get my paycheck.
Okay, so let’s explore some of the reasons you should or should not have a credit card. Of course, the decision is up to you…
Reasons Why You Should Consider Having a Credit Card
- You don’t have very much cash savings. It’s easy for people to tell you to just save the money so you don’t need a card, but I will tell you that while you’re saving an emergency might occur. If that emergency requires you to jump on a plane to see a sick mom or dad, you may need your credit card. Yes, you will go into debt, but your family comes first.
- You want to take advantage of frequent flier miles or other benefits. Credit cards can offer a number of benefits such as these if managed properly.
- Convenience. I’ll also be honest in that some expenses occur at the beginning of the month when you don’t have the cash. Perhaps you receive two paychecks per month. Is it okay to put a child’s birthday gift for a party on a credit card until you get paid in the middle of the month? I think so, as long as you pay it off when you get your paycheck.
- You feel more comfortable paying online with credit even though you are likely covered against fraud with your debit card.
Reasons Why You Shouldn’t Consider Having a Credit Card
- You’re a die hard against any form of loans (essentially, that is what a credit card is).
- You open a credit card account every time an offer is presented at the checkout counter
- You have no more room in your wallet for credit cards (they are filling every slot). Time to start cutting some up.
- You can’t pay off the balance each month.
- Collectors are calling you…you owe and can’t pay.
- You feel anxious about credit card usage.
I suppose I settle somewhere in between. As I said, I’m not necessarily against them, so we have one credit card we use for convenience purposes. Interestingly, Crown Financial Ministries takes this same approach; while again, Dave Ramsey is against them.
What about you? Do you have a reason to have a credit card?
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