Should I get a credit card?

A credit card is typically used as a short-term credit facility to pay for things. Unlike debit cards, which take money directly from your current account, a credit card enables you to borrow funds that you’ll need to pay back at a later date. Let’s take a look at whether getting a credit card is the right decision for you.

Build Your Credit History

With a credit card, you can work to build up a good credit score. Having a good credit score is crucial, as this can affect buying a house, renting an apartment, and even getting a job.

Image credit


Another perk of having a credit card is the potential rewards which may come in the form of points, miles and so forth. These rewards can be redeemed for perks such as flights and statement credits.


Credit cards can also be a great way to help you keep a hold on your spending habits, with all your transactions being logged and recorded on a monthly statement, it’s easier to budget and prevent excess spending.


This is a fairly big one. Credit cards should offer purchase protection and some include travel insurance. This can be crucial if there are suddenly any unexpected cancellations or delays with a booked trip. To initiate a chargeback with your credit card provider can be a lot easier than with a debit card when it comes to travel cancellations.

Beware of the Debt Trap

However, one of the biggest downsides to a credit card is the potential to fall into debt. Credit cards are only for short-term borrowing, and interest charges will build up quickly if you don’t pay off your balance.

If you need funds for a specific purpose such as a car purchase or property renovations, arranging a loan agreement, checked by a specialist such as may be a wiser decision.

Assess the Fees

Finally, there are various fees to be aware of with credit cards. Annual fees are the most common, and there might be charges for things like foreign transactions or any late payments.

Image credit

Is a Credit Card Right for You?

Credit cards can be useful tools for budgeting, building a good credit score, and buyer protection. However, if you’re a spender, or the idea of additional fees doesn’t appeal to you, you may want to avoid the plastic.

Leave a Reply

Your email address will not be published. Required fields are marked *