Should you necessarily have a credit card...? Or you can do without it...?

Can we imagine a life these days without a credit card? Can we think of ease and fun in life with no gold credit cards in our pockets? The answers might be a big ‘No’. Such is the impact of credit cards on our lives that we tend to ignore some of the shortcomings of them. Indeed, credit cards have become a necessity of our lives. We hardly think to go shopping with a wallet that does not carry a handsome credit card. Yes, credit cards have made our chores easy and convenient. It is endowed with a lot of benefits and advantages. But, do we ever feel that our lives can also be enjoyable and peaceful if we do not possess a card? Perhaps, we don’t. To be specific, we do not want to. Why??....

A credit card allows you to go bulk shopping without the need to carry a big sum of cash. It is safer and more convenient. If cash is lost, it is almost lost forever; however, if you lose a credit card, you will just lose a card, not the credit (should you proactively report the card lost and stolen to your issuer). Unless you authorize anyone, nobody is permitted to use your credit. You can carry this plastic anywhere in the world and enjoy the credit to the limit given to it. There is absolutely no fear of running out of money and being embarrassed in a grocery shop or a beauty parlor. You can also avail yourself of a short-term loan with the help of your credit card cash-advance feature, provided you have a big credit limit. It helps you repair your credit history, if you have a bad one. And more importantly, it enhances your societal dignity. The more number of platinum cards you have (as per we generally assume), the higher position you hold in the society. It is at times soothing to exhibit a good number of cards with high limits to our neighbors who may not have even one! So, it is worth keeping a card. As Christopher Parker said, “Procrastination is like a credit card: it's a lot of fun until you get the bill.” But… do we see the other side of the leaf. Do we think credit cards may have some pitfalls too? Generally, we do not.

We normally become impulsive while purchasing something with a credit card. We buy things with the thought that we do not need to pay it at this moment, so why worry now. It is a natural tendency. But, in this process, we at times forget that we must pay it off later this month. And, if we do not make the full amount used, we will be charged with some exorbitant penalties, namely late fees, over limit fees, high finance charges and so on. These things are not kept in mind when we go shopping. And, why should we think of them? After all, we want to enjoy what we purchase in a departmental store. We want less embarrassment and more satisfaction. This is a good attitude. However, if we do too much with the card, it for sure leads us to disaster. Not making a full payment at the end of the billing cycle adds discomfort to your credit card use. The balance will pile up in case you do not follow it up with a full payment of the current cycle as well as of the previous balance. Now, that hurts. You will keep on chasing your balance and in the end, you would discover that the balance is much higher than you actually availed the credit. You wonder how it has happened but you are helpless. You have to pay for all of the charges and fees along with the money you spent using this card. Gosh! Why…? But you can’t help; this is the agreement you have made with your issuer. Moreover, past due or over limit status on your account dents your credit score significantly. You cannot help seeing it go down. It will take a while for you to get it up.

So, be prudent and wise while contemplating to have a credit card. Just think, can you restrict yourself to limited purchases staying within the allotted limit of the credit card? If not, can you afford all the undesirable and flattening charges? Do you agree to all the fees associated with the cards? Is it fair? Do you really owe those fees that banks charge? Perhaps, you would disagree. Then, think again. You can do without a credit card. That you possess a credit card does not at all boost your dignity, instead, if you cannot repay, you are in debt, and this will multiply to higher balance. Does such plight of yours (God forbids) help you dignify? Then, why lose sleep over it? Try to use cash as much as possible. You will spend less (which you actually wish!) and be satisfied with what you have spent. No pending balance to pay off at the end of the month and hence, no unwanted stress. You will still have enough money to buy things to your needs, unlike those who would still keep on chasing after their outstanding credit card balance. It is something like running slow at the start of a race but winning at last, unlike others who run fast in the beginning and feel tired finally having energy exhausted. So, be content with all-cash purchases and stay happy. Enjoy...