Credit cards are necessary if you want to build up good credit. The only possible way to build up good credit is to use a credit card. Building up good credit is very important because if you ever have to get a loan for anything, you will need good credit to not only qualify for getting the loan, but to get the lowest interest rate possible. If you don’t have any credit, lenders are nervous about lending you money, especially large amounts because they don’t have any proof how you handle credit (which is what a loan is). They do not know if you will be the type of person who will pay it back, or at least pay it back in a timely manner, and they don’t know if you are the type of person who makes payments on time. If you have good credit, they already have proof that you make your payments, and you make them on time.
Even if you do not think you will ever need to get a loan, it is always good to be in a position that you always could get a loan at a moment’s notice should anything go wrong. Financial emergencies happen all the time, including severe car accidents that are your fault, and medical emergencies. It is always a good idea to be prepared in case you find yourself needing to take out a huge amount of money all at once. Even if you feel you have an adequate savings to pay for whatever may come up, guaranteed that a medical disaster could wipe out that savings pretty quick, especially if the medical bills were ongoing for quite a while. It is always good to be prepared.
Not only do credit cards allow you to build up your credit, but they offer many perks and incentives as well just for using them, including discounts on things, money back each time a certain amount is spent, and points earned toward purchasing items and frequent flyer miles. If you always pay your credit card in full each month, you will never have to pay interest, but you will be able to enjoy all the benefits!
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