I don't own a credit card. Should I be worried?

Discussion in Credit Cards started by johnnear • Jul 9, 2014.

  1. johnnear

    johnnearActive Member

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    I don't have any credit cards in my wallet but I do have a debit card. I was just wondering, what things does a credit card have that would make me want to get one? Besides the obvious reasons, but I don't really see the point of credit cards.
     
  2. Livvy

    LivvyActive Member

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    Credit cards can be a dangerous thing. It allows you to spend money that you don't actually have at that moment in time. It's like a loan from your bank, only with much shorter payback times. Usually if you don't pay it back by the end of the month, the interest rates will make it very much a problem. And don't even think about skipping two months! It's a tricky situation really. It allows you to spend money that you don't have right now, on things you do need right now. Which is good. But what if you don't have the money coming in either? That's bad.

    On the other hand, credit cards can be a good thing, since not only do they give you a little more breathing room when it comes to buying things, but they can help build up your credit report. If you're going to get a mortgage or loan later in life, it's good to be able to show the bank that you've got a history of being a good lender. There are other ways to do this, but credit cards are the most common way of building up this back history of credit payments.
     
  3. Parker

    ParkerWell-Known Member

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    Having a credit card and being responsible with it gives you an excellent credit rating. Having a very good or even excellent credit ratings gives you options. If you have a financial emergency you can get funds without high fees and APR. I'm mostly thinking about payday loans and such. A great credit rating will get you the best deals where buying a car or even a home. Some employers even look at a credit rating during the hiring process.
     
  4. mercantile519

    mercantile519Member

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    You should get a credit card with no annual fees, set it up so you pay your phone/utility bills from it, put it in a drawer and forget about it. Then, after you pay your bills, pay the credit card off in full every time. It's a good way to build up a credit history, not have to pay any interest, and possibly get some rewards out of it.
     
  5. Nickchick

    NickchickWell-Known Member

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    I hope it's not an employer that would have the job I'm looking for. It's really ridiculous how they require you to borrow money to just get a chance at earning an income. That's basically backwards.
     
  6. Jessi

    Jessi<a href="http://www.quirkycookery.com">QuirkyCooke

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    They don't require you to borrow money, though. The idea is to see whether or not you have decent credit and are therefore, more responsible than someone who maybe doesn't pay their bills, etc. You can have a credit card and never actually 'borrow' money or be in debt at all. You can use it to build credit, but never carry a balance.
     
  7. Pat

    PatWell-Known Member

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    Having a credit card makes it easier to purchase some items in advance of having the money to pay for them completely. If you have the income and are responsible when it comes to making the payments when due you should get a card if no more than to increase your credit score which is one of the things an employer will look at, they also look at how you have paid all of your bills not just cards.
     
  8. Allison2021

    Allison2021Active Member

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    Try applying for the Capital One credit card because they are easy to obtain. Next, I would try the Credit One Bank card. They are easy to obtain. Those are great ways to build up credit. Last, I would try a prepaid card to build up credit. I tried all of those for two years before I purchased my very first condominium.
     
  9. fivebyfive

    fivebyfiveNew Member

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    This is one of those tricky things: on one hand without a credit card it is much more difficult to build good credit on the other hand with one you could possibly screw up and end up with bad credit. So at the end of the day I always think it's good to have one and use it rarely or only for emergencies and then pay of the complete balance every month. I knew a couple that had trouble buying a home not because they didn't have a bad credit history but because they had NO credit history. It's a slippery slope and a tricky trap.
     
  10. Peninha

    PeninhaWell-Known Member

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    If you don't own a credit card and you don't need one I don't think you should be worried, on the contrary. I do own a credit card, but I don't use it often because I don't like spending what I don't have, I don't like credit. So, I spend money or I use my debit card because as soon as we start using credit things can easily get out of control.
     
  11. luigi

    luigiMember

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    I do not own a credit card either. I never spend more than what I have, and a credit card goes against that motto of mine. I know it would be good to eventually get one to build up a good credit score, but it stinks that I have to have the credit report in the first place. For now, while applying for colleges and working part-time, I think a credit card would be unnecessary. If you have the money and means, try out a credit card just to build up a score. Buy things you normally would with debit and pay it off with your credit card. That way, you know you have the money beforehand - you just end up using a different method initially.
     
  12. ACSAPA

    ACSAPAWell-Known Member

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    I went 37 years without a credit card. If you're not apartment hunting and you don't think you'll ever be subjected to a credit check, then you don't need a credit card.
     
  13. JessiFox

    JessiFoxActive Member

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    I don't have one either, but it does worry me not having one. I would be very careful with it and not use it for much, but I definitely need to build up credit, without question. That's really the only reason that I plan on getting one. Having no credit is sometimes seen as worse than having bad credit!
     
  14. JoshPosh

    JoshPoshBanned

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    Credit Cards are good because sometimes, in a emergency, you just might need one. If you ever lose your wallet or down on your luck you can always revert to using it. It is dangerous to use it because it is too easy to pull money out of thin air with a credit card. For security, get it, but don't abuse it.
     
  15. Frogurt

    FrogurtMember

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    The only reason I own a credit card is because it is linked to a rewards program. I make all purchases I can with my credit card and pay it off each week. It's never been a problem for me as I am really great at budgeting and managing my costs. I also avoid interest because I pay things off quickly. I do pay an annual fee of $60, but the rewards I get add up to hundreds of dollars saved.
     
  16. gmckee1985

    gmckee1985Active Member

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    I don't think you should be worried. Take it from me, you definitely want to get into the habit of paying for everything in cash, whether physical cash or through your bank account. It's a good habit to get into. Don't use debt as a crutch to cover for your lack of budgeting. A credit card can be useful though, to build your credit and to pay for emergency situations. But be very cautious in how you use it .
     
  17. Strykstar

    StrykstarActive Member

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    As long as you are a responsible person with your finances, there isn't really any harm in having a credit card.
    It helps you build up your credit rating and as long as you pay for your expenses in full at the end of the month, you don't even pay for any interest. Try to get one with a rewards program, in that case you're even saving money by having a credit card!
     
  18. La.Oui

    La.OuiNew Member

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    Like they have mentioned, credit cards help you gain good credit reports given that you actually comply with your bills. But honestly, there's no need to worry if you do not have one. Personally, I only use my credit card for emergencies and wallet-heavy purchases like appliances and the like. For me, I can easily manage my finances this way and not having one helps reduce in spending. ;)
     
  19. kbroder9

    kbroder9Member

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    Worried? No. But there are a few perks to getting a credit card (and sometimes necessity). Do you have loans or anything else that could help build your credit? You need to have a solid credit history in order to eventually get a loan for a car, house, or other large purchase. Keeping a credit card that you use every so often and pay off fully can help you look very responsible with credit. One of the other nice things is you can get cash back, points, miles, etc to get some free things out of having one! For example I'm at almost $250 I can redeem anytime with my Bank of America credit card. I also have an American Airlines card that I got a completely free trip to Vegas out of with flying first class and three hotel nights, and am almost at another completely free flight. You definitely don't want to fall into the trap of credit card debt, but if you have it responsibly, can be better off than just a debit card or checks.
     
  20. LuckyGirl08

    LuckyGirl08Active Member

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    I do not own a credit card either because I feel like I would be irresponsible with it. I love shopping so it would not be a good idea for me to have one. Once I get a steady job then I would consider applying for one in order to build my credit but for now, I will stick to my debit card.
     
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