I don’t want a credit card, and do I really even need one?

Question by BeachBoarder: I don’t want a credit card, and do I really even need one?
I’m 19 and most of my friends have credit cards. I told them I had no interest in getting one and they were like “but you need to start gaining good credit”.

I don’t really even get the whole concept of the credit card. When I buy something, I make sure I have enough cash for it and pay with that. It just seems much easier and I know that I definitely have the money and don’t have to worry about a bill later. If I want to buy something big, I save up for it.

So what’s the big deal?

Best answer:

Answer by teresathegreat

You need a credit card for certain things, like reserving a rental car or plan tickets. But you can use a debit card for most of these things as well.

Your friends do have a point – establishing a good credit history is important, and will be essential to you later on in life when you are ready to apply for loans or buy a house. Your credit history looks at how much money you are trusted with, and how responsibly you handle it.

So if you handle your credit card responsibly, it can benefit you in the long run. It’s best to think of a credit card as a debit card – you simply pay for the items at the end of the month instead of at the moment of purchase. If you pay the amount in full every month, you won’t have to worry about finance charges or interest, and you will build an excellent credit history.

So your friends have a good point – but I’d be interested to know how many of them really handle their credit responsibily, and how many foolishly carry a balance from month to month.

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