People use credit cards every day. In fact, you rarely see people carrying cash in today’s world. They either Venmo, PayPal, or use a credit card for all their day-to-day purchases. This includes monthly bills, food costs, groceries, utility bills, etc.
However, there is undoubtedly a divide between people who believe in the power of credit cards and the advantages of using them and those who absolutely want nothing to do with them (read more). But we’re here to tell you that there are definitely more people on this side of the coin, aka the side that knows how fascinating life can be with credit card perks.
If you’re here, chances are, you either don’t know which faction you want to side with or you used to be a skeptic, but you are now on the fence after seeing all your friends chatter away about how convenient and useful their credit cards are. Either way, we’re here to bring you out of the limbo you’re in and help you fully appreciate the perks of having a line of credit.
Here are 4 reasons as to why you should be applying for your first credit card now:
You Need Good Credit History To Become A Full Fledged Adult
There are a lot of things that you can do as an adult that weren’t available to you as a minor. For one, you can buy yourself a whole cake even when it’s not your birthday. You can go out drinking till 2 AM and neither your parents nor the police can stop you (unless you cause some trouble). And in terms of finances, you’re pretty much responsible for yourself.
Becoming an adult also means learning how to be financially independent. This means being able to provide for your own basic needs, such as food, shelter, clothing, etc. And while all these things may seem like a given, making sure that you are sufficiently providing for yourself is more challenging than it seems.
You need to take out a housing loan if you ever want to buy a house, an auto loan for a car, and maybe even a business loan if you want to build your own business. In order to qualify for these, you need to have good credit history and you need to start building it as early as possible.
Getting a credit card, like the Capital One Venture X Rewards Credit Card, and running regular transactions on it can help banks and financial institutions keep track of your cash flow as well as credit behaviors. It lets them gather your data as a consumer which will later become your credit history. Building good credit is necessary for you to take out bigger loans in the near future.
Credit Cards Can Really Save You During A Financial Pinch
Next, we have the convenience credit cards provide in times of emergency. If you suddenly become sick or someone in the family gets sick and you don’t have an emergency medical fund or insurance, having a credit card can be extremely helpful in terms of availing fast cash. Even during non-emergencies but income is low, you can also temporarily take out purchases on credit until you can figure things out. Just make sure that you are closely monitoring your expenses and not spending more than you can manage to pay back later on.
The Perks Are Awesome – Need I Say More?
Many people use credit cards not because they love spending money they don’t have; they just love spending money they do have and enjoy some credit card perks on the side. As long as you spend what you can afford and pay back your credit card bills in full on or before the deadline, you can enjoy all the benefits of your credit card with none of the risks.
Apart from the annual fee, you won’t be charged for more than what you purchased as long as you pay within the due date. So, if you have the cash to spend on something, just run the purchase on your card and pay it later instead. This way, you can enjoy perks such as:
- Dining Vouchers
- Shop Discounts
- Free Flights
- Cashback Rewards
- Fast Cash
Lastly, people love going cashless in the digital age. If they don’t use Venmo or Paypal, they run their purchases on a debit or credit card. It’s simply much more convenient this way, and safer too. Check this out: https://economictimes.indiatimes.com/tomorrowmakersshow/55956343.cms.
This is especially true when you’re out traveling to unfamiliar places. There are too many cases of tourist-targeted theft in the world to nonchalantly bring around cash with you and going cashless is just a great way to ensure the safety of your funds. If you lose cash, the chances of getting it back is very unlikely. If you lose a card, you can always call the bank to cancel it and get a replacement.