Do you really need a credit card?

I have blogged about the use of credit cards before but I feel the need to revisit this topic. It all began when I got an invitation in the mail.

The invitation read, ‘Congratulations you are pre-approved for a credit card from our financial institution.’ In order to collect and use my credit card all I had to do was fill in the attached application form and go into the bank to speak to a customer representative.

I was caught between two emotions, elation and anxiety. I was happy to know that my credit rating must have been good to attract the interest of the bank. However, I wondered if it was a good idea as it comes with a lot of responsibilities.

I also wondered why I was being targeted as I received several of these invitations from despite having very little money in those accounts.

I found out that often these lists are computer generated as one banking representative confirmed that there was no ‘special considerations’ given to bank customers who receive this offer.

So should I take up the bank’s generous offer?

Credit cards can be an asset as they provide readily available funds at your fingertips.

It is like a ‘mini’ loan that you pay back every month. There are also interest charges that you pay on the amount you use. If you do not pay on time the bank also charges you interest as they are all about making a profit so it is in your best interest to pay what you owe and not just the minimum balance.

The risks of owning a credit card

If you don’t use it wisely then you could be left with huge bills to pay at the end of the month. Compulsive shoppers have the most to lose as they will have to learn how to control their spending so that they are not faced with huge bills.

Are credit cards worth it?

So after carefully considering my options, I decided not to take up the invitation. Credit cards can be very a flexible option to ease the stress from ever rising prices but it has a downside too.

I could just see myself amassing a huge bill and not being able to pay it and sinking into debt.

The fact is that if it is not properly used credit cards can create more problems for consumers.

Well that’s my decision but what’s your take?

Do you have a credit card?

Teri Ann Renee Paisley

Gleaner Online Writer

Tags: credit card