5 Reasons why you should get a credit card

In this modern day and age, cashless options are becoming increasingly attractive to consumers.

The option that has been given the worst reputation is the credit card.  In fact, many consumers avoid getting a credit card and use debit cards instead.

Why are credit cards so maligned?

• Well, these cards extend a line of credit to consumers that they have to repay at the end of the month.
• If the amount is not repaid in a timely manner, then charges can accumulate.
• There is also an annual fee paid whether or not the card is used to make any purchases.

Part of the reason that credit cards seem to be avoided is that if not carefully monitored they can result in consumers facing heavy debts. For example, there are fees that are incurred for going over your limit or not paying the amount owed in full at the end of the month.

In order to control your spending it is important to monitor your bills.

Credits card statements help to track your spending but it is important to keep the receipts issued whenever the card is swiped.

So why should you get a credit card?

• The use of the credit card will avoid the hassle and time involved in trying to get a traditional loan.
• A balanced use of the credit card will result in a good credit rating when trying to qualify for loans.
• Credit cards also relieve the strain of trying to pay all the bills from your pay cheque.
• Credit cards can help you in emergency situations where you have to pay unexpected bills.
• Credit cards can also save you money as they can earn discounts on selected services and products.

Are you going to get a credit card or do you already have one? What are your thoughts on its use? Let me hear from you!

Teri Ann Renee Paisley, Gleaner Online Writer

Tags: budget, consumer