10 Reasons You Should Have A Credit Card

If you learn to manage your credit cards correctly, they offer a number of advantages and can save you a lot of money (I know that sounds strange, but it’s true). Having no credit history is nearly as bad as having a bad credit history and with so many financial instruments tied to your credit score in some way (mortgages, insurance…even possibly your job), using a credit card to build credit and up your credit score is a wise decision (again, if you can manage them correctly). Here are ten reasons spelled out in my latest TheStreet.com article:

1. Boost Your Credit History and Score
2. Internet Purchases
3. Emergency Money
4. Rewards
5. History of Purchases
6. No Fear of Loss or Theft
7. Interest-Free Money
8. Merchant Protection
9. Insurance on Purchases
10. Convenience When Traveling

For those that have the discipline to pay off their credit cards each month, they are a great financial tool that can save and earn you quite a bit of money.

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12 Responses to 10 Reasons You Should Have A Credit Card

  1. vsjhoc says:

    Another benefit: many credit cards include rental car insurance if you charge the rental on the card, so you don’t have to take the expensive policies offered by the car rental agency.

  2. Teri Newton says:

    I really enjoy earning interest on all of my purchases (1% – 3% currently). I originally got a card at 16 to establish credit but have found further uses. 0% interest offers are not bad either, as long as you are careful and read all the fine print.

    In addition, I find it much easier to track than cash, though that debate always rages on in the forums. But downloading purchases to Quicken every month, from cards, makes it a snap to monitor spending. Even monthly statements can give you help tracking if you are not great at writing every little purchase down & don’t have budget software.

  3. Debbie says:

    Another benefit: some car rental places will accept NO OTHER kinds of payment.

  4. James Finbiner says:

    Fact: over 90% of the population buys more stuff when purchasing with a card as opposed to with cash.
    Fact: Over 80% of Americans let the balance ride.
    Fact: You can rent a car, pay for motels, shop online, etc, with a debit card.

    I really enjoy that 24% interest too!!
    You might think you can win at the credit card game, but just like vegas, in the end, it’s the House that sets the rules!

  5. greenday says:


    Can you show sources for your facts? They seem a bit overstated to me.

  6. CM Evans says:

    It is important (even essential in this society) to learn how to be responsible with credit, how to use credit, and how to solve/ negotiate credit problems if things go wrong, and most people start learning this skill with a credit card. At one point in my life I had 5 credit cards with about 35K of debt ping-ponging between the cards in various amounts. Eventually through debt consolidation my wife and I payed off all our cards and got out of this revolving or rolling debt situation. The point we learned is, it is not necessarily bad to be in debt, what makes it good or bad is how you structure the debt — then how you are investing the funds.

  7. davis says:

    You can’t reserve hotel rooms without one or a rental car.

  8. Prince of Thrift says:

    Davis –
    Yes you can. I have done it many times. Just give them your debit card number…when asked visa or master card, tell them what which it is…they will run the card like they would if it was any other “credit card”

    If they tell you they can’t take debit cards they are lying and you should avoid doing business with them. The one car rental company that used to say it had to be a credit card and not debit was also the most expensive.

    In addition there are ways to rent with cash, although it is more difficult, but places like your car dealership or “Rent a Wreck,” have no problems taking cash.
    vsjhoc –
    Most auto insurance policies cover rental cars. Using that as an excuse to put yourself in debit with credit cards is a lame excuse.

  9. Tom Mayer says:

    Credit cards can be a really useful tool for managing finances. But, unfortunately, not everybody read the fine print carefully and, thus, run into debt.

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  11. Unname Newyork says:

    I think that credit cards are one of the easiest ways to track your spending. When coupled with a program like Microsoft Money or Quicken, you can easily see where your money is going and keep track of how your spending is changing from month to month. Some companies are adding management features into their accounts so you can categorize charges online and view the totals for each category even without downloading them to your computer.

  12. Kaycee Agilar says:

    Somehow, between me and my husband, we have managed to accrue over30 thousand in credit card debt. We can’t seem to find a way out. We have tried to budget, we have done research, and we have even cut out alot of fun stuff in our lives. I think it’s time for me to get a full time job. If we can’t pull this off, we may have to declare backruptcy.

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