Credit cards

7 reasons not to get a credit card

1. It can create a habit of spending money you don’t have
2. It increases how much you spend
3. It reduces the control you have of your financial situation
4. It makes you less prepared for unexpected expenses or other life events
5. Missing payments will impact your financial institution’s profile of you and potentially your credit rating
6. You’ll be charged really high interest if you miss a payment
7. You don’t need one!

If you don’t need to borrow, you don’t need a credit card.

And 3 good reasons people choose to get one:

1. Security: You get cover if someone uses your card without your permission to make purchases.
2. Purchase protection: Some credit cards come with purchase protection, allowing you to make insurance claims for items purchased with your card that are lost or damaged (usually within 90 days from purchase).
3. Convenience: Credit cards are accepted just about anywhere, so they’re good for online shopping and can be used for overseas travel.