Do I need a Credit Card?

Many individuals keep away from credits cards because they find it difficult to manage it. They have heard of their friends and relatives getting into debts because of credit cards and some fear the risks involved because of many credit card fraud cases reported. They fear loosing control of their finances. The answer to "Do I need a credit card?" really depend on the current environment or situation a person is. It is important that you learn how to use it the best way so that you get maximum benefit. Lets understand the power of card credit.

• It can be immensely useful in case of emergencies

• Suppose toward the end of the month you have a guest and if you don't have enough money you can depend on your credit card.

• Similarly if your car needs a repair while you are on for a long travel and if repair is expensive, credit card will come to your rescue.

• Few years back when my grand father (he didn't have a health insurance) was seriously ill and hospitalized, the hospital asked me to give a security deposit to start the treatment and at that time I showed them the credit card and they said you can make all payments after treatment. That's the power of credit card.
  
  
• Credit card payments are universally accepted

• You can avoid carrying money and check books around. It is safer to carry a credit card than money around. Now everyone accept credit card.

• Credit cards are welcome every where, supermarkets, grocery stores, shopping malls, restaurants, travel agencies, etc

• Apart from the invoices we get credit bill also and we do have a better control over merchants on an item purchased in case of any disputes.
  Many companies prefer to deal with credit cards because there is no need to handle cash and all its attendant risks.

• Its is a must if you have to do any online purchase.

• For example purchase of flight tickets

• What if you want to do an online course? you will have to make online payment. Almost all purchase through internet require need a credit card. If you have to survive in this new technologically advanced world you need a credit card. So credit card become mandatory.

• Card Credit is a form of personal identity.

• It can be used as alternate proof of personal identity

• People who have credit cards get more privilege in certain places.

• It strengthens your financial capability

• It enhances independence and personal dreams can be fulfilled. You don't need to depend on others for money .

• Keep track of your personal expenses and helps in effective budgeting because your credit card statement helps to identify your spending and you know exactly to which category your money is flowing. Hence you can have better control.

• If you spend with in your credit limits and repay in full within grace period (usually 25-35 days) then you will not incur any interest. If you regularly follow the rule you can save lot of money. Money in your account will get additional days to earn more interest until it is used to pay off the credit card bill. Further you will qualify for attractive credit card offers
  If you maintain a healthy credit score you are eligible for long term and short term loans at special low interest rates.

Further, as I said for different people requirements will be different. If you choose the best credit card that meets your requirement I am sure that you will be in a better financial position. Please note one card may be best for a middle class family but it may not be the best for a business person because requirements and priorities are different. Even their money management methods and budgeting will vary because their vision will be different.