Why one should have credit cards? It has more pros than cons. My answers will justify it.
Credit cards have more pros than cons, making them a valuable asset when used responsibly. Credit cards offer rewards points, discounts, and other benefits for necessary purchases in our daily lives. They can be helpful during emergencies or when facing a cash crunch. One of the most significant advantages of using a credit card is that it can help build a positive CIBIL rating, which can make it easier to obtain loans both in India and abroad, provided you pay your bills on time.
Individuals can still overspend even without a credit card, so ultimately, it’s a personal choice. A personal experience highlights the value of having a credit card. While working in Bangalore, I fell ill, and my company’s health insurance was inactive during the cooling-off period after my resignation. I had to be admitted to Sagar Apollo Hospital Bannerghatta Road, and the hospital staff asked me to pay an advance of 30K INR. I only had 5K INR in my account, and I was in a terrible state. My roommate came to my aid and paid the advance using his credit card, which totaled 40K INR for the two-day hospital stay. Since then, I obtained personal health insurance and a credit card, which I have been using for the past ten years. Last year, when my father was seriously ill, I paid his 2.5 lakh INR hospital bill from my credit card, which I settled later. Having a credit card provides peace of mind and eliminates the need to withdraw money instantly from emergency funds or borrow from someone.
Using credit cards wisely can lead to significant savings and be a valuable asset during emergencies. Therefore, it is recommended to have at least one credit card and use it wisely for necessary expenses.
TechTalk 