There are many advantages to using a credit card, but the most important one is building up your credit. If you do not have credit, it is almost as bad as having bad credit because with no credit, or very little credit, lenders are not sure what kind of a person you are with credit and are therefore a little more nervous about lending credit. You need good credit to apply for a loan with a decent interest rate. You also need good credit to use anything involving credit, such as credit cards, or even qualifying for insurances to get the lower payments. If you have bad or little credit, your interest rate will be very high compared to what you could be paying, and that will be a lot of money down the drain, causing you to actually be able to afford less!
Even if you think you will never get a loan, or need to use credit for anything, it is always good to be prepared just in case you do. You never know when something might happen. Financial emergencies can happen at any time such as medical emergencies. Even if you have excellent medical insurance, if the worst happened, expensive ongoing medical bills could really wipe you out!
There is no reason to go into debt using a credit card either. If you are responsible with your money and you budget yourself, you can enjoy all the perks credit cards let you enjoy just from simply using it while building up your credit (as long as you make your required payments on time each month). It is also important to put some money into savings each month. If you can’t do this, cut down on things until you can. Having a savings is very important to avoid ever having to go into debt.
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