Do I Really Need A Credit Card
by
Connie David
Credit Cards. You can’t live with them, and you can’t live without them. Some people would say that’s kind of like….never mind. In many ways it’s true. Some people think that if you don’t have credit cards, you can’t get into debt. well, maybe.
but here’s the catch. If you don’t have a credit card, you have a very difficult time establishing credit. In addition, there are things that you absolutely can’t do without a credit card. Try making airplane reservations without a credit card. How about reserving a hotel room? A credit card is sometimes accepted as a 2nd form of identification. Last but now least, using a credit card is the best way to establish your credit.
Credit is important. If you want to buy a house or get any kind of loan, you have to have credit. You have to be able to show lenders that you are a good credit risk. You do this by having a good credit score. So how do you establish a good credit score without getting into debt? Simple. Get a credit card. charge as little as $10 a month on that card. when the bill comes, PAY IT!
Pay the entire bill. what lenders want to know is, do you make your payments on time? By paying your credit bill in its entirety every month, you are establishing good credit. You are showing that you do pay your bills, and that you are responsible. That is what those interested in your credit score want to know. People who get themselves into trouble with credit cards spend beyond their ability to pay. People who think they will just buy it now and pay for it later, usually have much more to pay for than they can afford. If you make it your policy to only charge on your card what you know you can pay for when the bill comes, you won’t go into credit card debt.
Now I realize that sometimes emergencies force people to spend more than they have at the time. sometimes it can’t be helped. But if you are buying something you can’t afford just because you want it, then save for it. work for it. when you finally buy it, pay for it in cash. Or, charge it to your credit card, and pay the bill in full when it comes.