| If you don't have a credit card or have one that you | | | | when you need them. |
| don't use very much, you may be asking yourself: | | | | Security |
| "why do I even need a credit card?" Many people are | | | | Another reason why having a credit card is important |
| sceptical about the need to have a credit card, even | | | | is security. Credit cards are much more secure than |
| though so many others have more than one. If you are | | | | cash or debit cards, and you can stop people from |
| not sure whether credit cards are really necessary, | | | | taking your money. Also, if someone does use your |
| then here is some advice to help you to decide if you | | | | card you are usually covered and can claim all or part |
| need a credit card or not. | | | | of the costs back. Card security also works the other |
| Do I need a card? | | | | way, and many retailers or service providers require a |
| The first thing you should ask yourself is whether or | | | | credit card for bookings or purchases. Perhaps the |
| not you really need a credit card. If you have managed | | | | best examples of this are hotels, which often require a |
| perfectly well for years without a credit card, and your | | | | credit card in order to allow you to book a room or |
| situation hasn't changed, then perhaps you don't need | | | | pay for extra services. |
| a card. If you have money saved then you don't need | | | | Debts |
| a card for emergencies, and there is no need to pay | | | | Of course, there are reasons why you don't need a |
| fees and interest if you can live comfortably the way | | | | card. They are extremely tempting to use, and with |
| you do now. However, if you find that you are unable | | | | high credit limits you often feel like you are not really |
| to buy large items that you need because you cannot | | | | spending money. This can put you deeply into debt and |
| afford to buy them in one go, then you should look at | | | | will severely harm your credit rating if you cannot |
| getting a credit card. | | | | make the repayments. If you are someone who |
| Credit history | | | | cannot easily control their spending, then you should |
| Although you might not need to spend on a credit card | | | | probably steer clear of credit cards. |
| because you are perfectly fine with cash or a debit | | | | Are cards necessary? |
| card, not having a credit card can harm your credit | | | | Although credit cards can cause debt and other |
| history. If you are a responsible spender then having a | | | | problems, for most people they are a necessity for |
| credit card will help to build up a credit history. Although | | | | everyday life, and are required for them to live their life |
| you might have never been in debt, this can actually be | | | | properly. However, this doesn't mean that getting a |
| a problem when you come to get finance such as | | | | credit card is right for everyone. If you are honest with |
| loans or mortgages. Lenders like to see that you can | | | | yourself and look at your lifestyle, you will be able to |
| handle debt such as credit cards. Having a credit card | | | | decide whether getting a credit card is right for you. |
| simply for the purposes of improving your credit history | | | | As long as you can make the repayments and you |
| is a good idea. If you spend on the card wisely and | | | | use the card responsibly, then having a credit card is a |
| pay your bills on time then you will have a better | | | | good idea. |
| chance of getting great deals on loans and mortgages | | | | |