Why We Need to Have a Credit Card?

When I just graduated from university, I din really like to get a credit card cos I thought that credit card is an evil tool that could cause me to overspend and get a lot of debts. After 1 year plus, a friend of mine approached me to apply for a credit card and since I got that card, it proved that my perception was wrong.

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Why we need to have a credit card? I'll try to briefly explain the reasons from five aspects of our day to day life. First, credit card is secure. You dun have to carry a lot of cash around. When you accidentally lose your wallet, you just need to make a call to the credit card centre to cancel the card.

Second, credit card is very useful during emergency. You can draw out cash with your credit card from any ATM machines anytime and anywhere for emergency use. Besides, you can swipe card on occasion when you need to pay large amount of deposit, e.g. hospital admission.

Third, credit card is a convenient tool. You can swipe a large amount of money within your credit limit. You can swipe and pay in installment. There are easy payment schemes offered by credit card issuers, which you can buy electrical appliances, furniture, IT products from all those big outlets with 0% installment plan. The 0% installment plan normally ranges from 6 months to up to 36 months, depending on the amount you spend.

Fourth, you can enjoy 20 days of interest free period from the date the credit card statement is issued. Some credit card issuers even offer up to 3 days of grace period from the payment due date. With the credit card statement, you can actually manage your expenditure in an easier and organized way.

Fifth, you can enjoy exclusive discount for dining, shopping, travelling and so on with your credit card. You can even get cash rebates for retail purchases, petrol, air tickets and more depend on the type of the credit card you use.