Student Credit Card and Credit Education Blog

There is a camp of people in the United States who think credit cards are evil. They think spending money that you don’t have on hand is an inappropriate financial practice and cash/checks should be strictly used at all times.  This keeps you away from any credit card debt, high-interest rates, and bill collectors knocking on your door. Thank you, duly noted.

I’d like to disagree, you honor. Despite the above, there are a number of reasons why I think everyone should have a credit card. Not only because I write for a credit card website, but there are a number of legitimate reasons to pack at least one piece of plastic in your wallet.

• Easy way to build credit - When you buy a car, house, TV, computer, furniture, etc. and either take out a loan or utilize the “No Payments until 2009″ option, you need to have a decent credit score to get the best rate. Using a credit card and making your payments is the simplest and quickest way to do this.
• Emergencies - You own an apartment and the water heater breaks in the dead of winter. If you don’t have the cash on hand, then using your card allows you to avoid freezing to death.
• Shop online - It’s really the easiest to use Amazon or Overstock. Sure, a few sites take Paypal (which connects with your bank account), but all sites allow you to use your Visa.
• Make money! - If you are good at paying your bill, you can earn cash back or frequent flyer miles with your card, so it’s actually an additional (yet small) form of income. Also, if you’re in real good financial shape and have a 0% APR card, you can use a free balance transfer and deposit your entire credit line into a savings account. You’ll enjoy a years worth of interest in your pocket!

So, you may know all these and most likely you either have a card or plan on getting one soon. But, for those who are wary and don’t understand the benefits,  the above should make it clear why you should participate.