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Why you need to get a credit card

Updated on February 12, 2011

Why you need a credit card

Many people would not think of getting a credit card due to lack of knowledge of how to apply for a credit card, their  are so many reasons why you should consider a credit card in your life. Credit card has got numerous benefits.

Why many people do need have credit card is because they lack the necessary bank minimum to be able to be able to acquire one. Some banks have realized the benefits and huge rewards they get from their credit card holders and are lowering the minimum charges for an individual to be able to get one.

Gone are the days when banks could look upon people discriminately before issuing a credit card, initially banks reserved the credit cards for wealthy and business people rather than individual with low paying income

credit card

How to use your credit card

As an individual it is worth considering having a credit card for the reasons listed below

1. Emergency safety bank – your credit card is your emergency safety bank where you can get immediate cash without having going to the bank to get money, or borrowing money from friends. Credit cards helps in emergency circumstances like being hospitalize at odds hours when you do not have access to the money, here you credit card will save your life in hospitals where upfront payment is required , your car can break down unexpectedly and the only savior is your credit card. Credit card allows you to tackle emergency with less hassle and save your time precious time, credit card is your emergency safety bank

2. Convenience – credit card is more convenient and a cheap way to carry cash in bulk, gone are the days when you put your life in danger by carry a sack of money. Credit card is such a small card with millions dollars and can safely fit into your wallet.

3. Your money safety – credit card is more secure as some people think otherwise compared to cash, in a situation where you lost all your cash at once you will not be able to get them bank, with credit card loss you simply report that to your bank immediately who then will block your credit card account. Once your credit card account is blocked nobody will be able to withdraw money with your credit card. The beauty with credit card is that when you loose your card and report immediately to your bank for blockage, any transaction that will be done with that credit card will be refunded back by the bank

4. International currency – credit card is just like an international currency applicable in every country in the world, with credit card you can purchase anything, anywhere, anytime. The ATM world that you can use your credit card are over 500,000 and many banks worldwide

5. Banks normally allow credit card holders to give supplementary cards to their spouses, with this they are also capable to use credit card even without having bank account with them

6. It helps you manage your financial information by keeping all records of any transactions that have been done, so you will not loose any information since your records are kept with the bank

How credit card work

Your bank will grant you a credit card after meeting some set of rules, with this card you will be able to withdraw money from ATMS, the bank normally has credit card limit which you cannot exceed, your card comes with a PIN which they normally sent you separately with the card, credit card is a lending mechanism, with these the bank charges you some interest on every amount spend on the card.

When your credit card period comes to an end, your bank will send the financial statement of the card, stating how much was spending, and how much you were charged. Most banks issues credit card for a period of two years, and the most common used cards are VISA and Master cards. You cannot use your credit card before settling any outstanding expenditure you incurred


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    • anna.smith profile image

      anna.smith 6 years ago from Germany

      Great information thnx for sharing.

    • masaa profile image

      masaa 7 years ago from Kenya

      Good advice man. keep it up

    • Anamika S profile image

      Anamika S 8 years ago from Mumbai - Maharashtra, India

      That's a great write up on Credit Cards. Thanks for sharing!

    • oderog profile image

      oderog 8 years ago from Nairobi

      Yes many only talk of the bad side of the credit card after they have messed the card themselves but when doing well with it nobody mentioned that

    • bingskee profile image

      bingskee 8 years ago from Quezon City, Philippines

      it amuses me that most of the time i read about the disadvantages of having a credit card. you are right, it is how someone use a credit card that give it its value.

    • oderog profile image

      oderog 8 years ago from Nairobi

      Only how we use our credit card is what makes it to be bad or good. If you abuse credit card it will also abuse you, good credit card use will enable one to see the benefit of using the credit card, thanks rb11

    • rb11 profile image

      rb11 8 years ago from Las Vegas

      Credit cards are good if one can stick to the uses you describe above. Unfortunately this is not always the case, in fact in many cases the abuse of this product has created havoc in todays world. Lets try a debit card.


    • oderog profile image

      oderog 8 years ago from Nairobi

      Thanks, Patti, actually many thinks that credit card can destroy you financially but, it depends with how one uses his cards, credit card need some better pratice

    • Patti Ann profile image

      Patti Ann 8 years ago from Florida

      A credit card is a must have for just about everything you do now. Great advice on how to use it.