Do people really need to have a credit card? Why and why not?

1. 59

   dscarchaposted 12 years ago

   Do people really need  to have a credit card? Why and why not?
   
   Most of the people specially those starting professionals see the need of acquiring credit cards. But I'm not sure if doing so will help its holder to grow in his/her financial aspect. What do you think?

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2. 69

   DreamerMegposted 12 years ago

   You have to look at at how you are going to manage your finances. Some people treat a credit card like a life time free pass to the money tree. They see "money available for spending" and forget about the other side - repayment and interest, or else don't count in the cost of repayment to their monthly budget.If you are one of those people, then stay away from credit cards.
   
   On the other hand, possession of a credit card can be helpful. In the UK, if you make a purchase of over £100 using your credit card, you have more protection if there is a problem with it. The same applies with online purchases. Possession of a credit card and a good steady record of repayment can help your credit score when applying for a mortgage, for instance.

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3. 69

   Don Fairchildposted 12 years ago

   Many folks feel they must have a credit card, mainly because of their ability to have an advance on their money.   This when out of control, can lead to a financial mess if you can't manage the money well.
   If you are able to pay off your credit charges each month, then you are very responsible financially.  Monthly payoffs gives you an excellent credit rating, which would come in handy in the future when you want to buy a car or a home for instance.
   On the other hand though, if you are not good at managing your money then the credit card is going to be your worst enemy.  By letting the balance pile up month after month you reach a point where you can't pay off the balance, and then your in trouble with the bank.  (Unfortunately some North American governments think that they can do this with impunity).  But that is a different story.
   Use your card sparingly, pay the balance each month and don't rely too heavily on it.

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4. 68

   safiq ali patelposted 12 years ago

   I suppose a credit card is not essential but it does put a little extra cash in your pocket so to speak because it it's there with the credit limit. A credit card is not essential as such but it helps to have one if only for those emergencies when you need one.

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