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Contrary to popular belief, a credit card is not a necessity of life. For some people, credit cards will either be completely unnecessary, or will end up causing more problems than it solves. Here are five reasons you don’t need a credit card.

credit card apple iphone

It will help you live within your means

If you don’t have a credit card, you will have no option but to pay with debit cards or cash. Not having a credit card will help you to think through your purchases well before taking the plunge. If you are someone who tends to buy first and think second, having a credit card will only mean bad news.

It’s easier to reach financial goals

Without a credit card, you can be on top of every credit and debit that enters or leaves your account. This will, in turn, make it easier to budget and plan out financial goals. When using a credit card, there is a heightened chance of you spending money you can’t afford at the time, and blowing out your budget.

credit card bill

You already have enough bills

Who wants to add an extra monthly bill to the mix? Signing up for a credit card means signing up for another bill that comes every single month. With rent or mortgage payments, electricity, phone and internet, water, gas, and car bills, we already have more than enough coming in. Why add another?

A credit card doesn’t foster good spending habits

Many people will view using a credit card as ‘free money’, but in reality you are simply borrowing from your future self. If you are someone who is new to financial literacy, or has in the past struggled to control spending or create a budget, a credit card is probably not for you. In order to build healthy financial habits, it is important to track any income and spendings as they happen.

credit card interest fees

Interest and fees

Nobody likes paying extra fees and interest! If you have a credit card, it is likely that you are paying more than you actually spend. Not to mention the interest you will accrue if you are late on a payment one month. When interest begins to add up, you will likely find yourself paying a lot more for your purchases than the number on the tag.

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