Is a Credit Card a Necessity?

Credit card

There are several people we know who own credit cards. In fact, their use of the card is such that they feel helpless on a day when they forget their credit card at home and just head out. The feeling they experience is like a fish out of a pond. This is because they simply fail to function. However, is a credit card such a necessity? Read ahead to find out the advantages of owing a credit card and then decide according to your needs and spending habits if you wish to apply for one or you will just pass at the moment.

  1. Speed: In comparison to cash, you can easily say that credit cards are faster and more hassle free. The explanation behind this huge statement is that in case of cash payment, you first need to calculate the cash that you have at hand, then pay, and then wait for the change. In fact, there are also a number of situations when the sellers just refuse to give you change because they themselves do not have it. However, in case of a credit card, you just need to swipe it and your work is done. This means that you do not need to wait and waste your time that is precious. You can then pay the bank. However, ensure that you do not go overboard with this because no matter what, you have to repay this amount to the bank.
  2. Protection: Another advantage of using a credit card is that you can protect yourself under the law. There are special provisions that you can avail of in case you pay for something through your card and still do not receive the product or services. In fact, when someone steals your cash, you cannot get it back. But, if someone steals your wallet or bag and it has your credit card, you have the facility of instantly calling your bank and getting it blocked. This way you can ensure that you save your hard-earned money and no one can make illegitimate use of it without your permission.
  3. Borrow for free: Most banks have the facility that you can borrow for free. This not mean that you will not have to repay the bank. It simply means that the interest that you are charged will not be levied right away. In case you are able to return the amount before the due date, then you are on the safe side and you will not have to pay any interest. It is only the failure to pay within the due date that you will have to pay a certain amount of interest as well.
  4. Earn while you spend: You may already be aware but I would still like to remind you that your credit helps you to earn while you spend. This is because you get the chance to earn points. There points are redeemable and you may also be able to play your next trip abroad at a cheaper rate. Last but not the least, you also get the opportunity to avail of cashback offers.


Anum Yoon is the founder and editor of Current on Currency. She loves all things personal finance, which is why you'll find her work all over the PF blogosphere.