Why Do I Need a Credit Card?

Why do I need a credit card?  Seems like a reasonable question, doesn’t it?  Are you asking because you don’t know why you’d need a credit card, or because you’re trying to buy or do something, and the provider is requiring a credit card?   Truthfully, there are lots of reasons why you need a credit card, and those reasons can be different for every individual, but the simple fact is, most of us need a credit card for one reason or another.

 

  • Online Shopping – While you can use your bank issued debit card for online shopping, using a credit card is actually a much safer way to shop online.  Obviously, you want to put as much distance between your bank account and hackers as possible, and using a debit card that is connected directly to your bank account is definitely not putting very much distance between the two.  In the event that your account is compromised, and believe me it does happen, thieves only have access to the limit on your credit card, not your entire bank account.  And, it’s much easier to call a credit card company and cancel the card than it is to wait for the bank to credit the stolen funds back to your bank account!
  • Travel – While you don’t absolutely have to have a credit card to travel, you’ll definitely end up paying more for your airfare if you pay cash at the travel agency, instead of taking advantage of the discounts that you can find online for cheap airfare!  And again, buying those airline tickets online with your debit card is exposing your bank account to potential hackers.
  • Accommodations – Ever tried to pay for a hotel room with cash?  Unless you’re staying in a small Mom & Pop operation, or renting a room in an undesirable part of town, it’s almost impossible to pay cash.  And using your debit card is even more dangerous in many hotels – everyone who has access to their computer system typically has access to your information… your debit card, your home address, your phone number… how easy would it be for a minimum wage front desk clerk to steal your debit card information?
  • Car Rentals – Perhaps the hardest thing to do without a credit card is to rent a vehicle.  In fact, unless you are willing to give them a credit or debit card, you simply cannot rent one.  And, once again, you’re giving an entire rental car company access to your information.
  • Building Your Credit History – One of the easiest ways to build a credit history, especially if you have no credit, or even a less than perfect credit history, is to simply get a credit card, use it wisely, and make your payments on time, every time.   In turn, the credit card provider will report your responsible credit usage to one or even all three of the major credit bureaus, and your credit score will normally improve over time.  And, building your credit history is the only way that you’ll ever qualify for that car loan, or even that home loan, that you will one day want or need.

Of course, if you ask a dozen people why you need a credit card, you’ll likely get a dozen reasons why you need or even why you don’t need a credit card, but the simple fact of the matter is, most of us need a credit card at one time or another in our lives.  And, using that debit card instead of a bona fide credit card is really not the best choice that you can make.  So, instead of asking yourself the question, “Why do I need a credit card,” perhaps you should be asking yourself which credit card is the right credit card for your financial needs!   Check out the selection of credit cards we offer and get started today.