Everyone Should Have a Credit Card: 10 Reasons Why

Credit cards are a fantastic resource to help you handle your finances better. Here are ten reasons why everyone should have a credit card. 

Reason #1: Easy Way to Build Credit

Credit cards are a quick and easy way to establish or build credit. Credit scores affect your ability to get car loans, personal loans, and other credit products. Having a clear credit report is essential.

You can start with a secured credit card that will give you a low credit limit for young people. 

After responsible credit card use, you can request a higher credit limit. 

Reason #2: A Generous Sign up Bonus

Many cards will give you cashback as you spend money. Spending $1000 within 90 days and getting $100 back is a standard account opening bonus. 

I have a rule that if a credit card issuer does not give me an enticing sign-up bonus, I will not sign up for the card. 

Reason #3: Pay Zero Interest for a Period of Time

One perk of using a credit card is that most cards offer 0% interest rates on purchases for extended periods.

You can use this window to make large purchases without worrying about paying any interest until months later. I have done this numerous times to spread out paying for purchases over time. 

Pay more than the minimum payment to avoid a high-interest rate when the promotional period is over. 

Reason #4: They Come With Purchase Protection

The fine print with credit cards can be to your advantage (sometimes). There are consumer protections on a credit card that you don’t get with a debit card or cash transactions. 

When I visited Mexico, I bought several pairs of jeans. I had buyer’s remorse and wanted to return them the next day. The store did not accept returns. 

My credit card company within the week refunded me the money. I had the money and the pants now, a win-win. 

Reason #5: Fraud Protection

If your card is ever lost or stolen, you will not be held responsible for fraudulent charges. 

With cybersecurity being such a concern, this is beneficial. 

Report any theft or loss of your credit card as soon as possible. Fraudulent transactions are a drag. 

With a stolen debit card, the thief can pay for many things before you can report the fraudulent purchases. 

Reason #6: Cash Back Rewards

Only choose a card that will improve your credit rating, has no annual fee, and gives you the ability to earn rewards. 

Use the credit card on everyday purchases and earn money while paying your expected expenses. 

Reason #7: Air Mile Rewards

A different card issuer may offer frequent flyer miles as a rewards program. These credit cards will help you travel, pay for rental cars and other travel expenses. 

When you’re in a foreign country, ensure that you use a travel credit card to avoid the foreign transaction fee. 

Reason #8: Insurance Included

Nearly all credit card companies offer insurance when you rent a car. Ask them to see.

The insurance provided by the rental car company can be as much as $50 per day, that’s $350 per week. 

Reason #9: They're Universally Accepted

You don’t need to carry cash anymore as we have become nearly a cashless society. 

Take that for what you will. Some don’t like being tracked—some like the convenience. 

Credit cards are accepted nearly everywhere besides small mom-and-pop-type businesses. 

Reason #10: Safer to Carry and Use

Many people like to carry and use credit cards for safety reasons. Debit cards have your bank account linked directly with the physical card. They can quickly drain any funds if it gets lost or stolen.

Credit cards only allow you access to what's available in your line of credit, which leaves a lot less room for someone to take advantage of your personal finances than other forms of payment do.

Everyone Should Have a Credit Card: Having a Good Credit History Is Important

Credit cards are a great way to make purchases, whether you're buying groceries at the local market or booking flights for your next vacation.

As long as you use the credit card responsibly and don’t rack up any credit card debt, credit cards are a good idea.