Do you really need a credit card?

Credit cards are nifty to have when used responsibly. You get to rake up points that earn you benefits such as gift cards, cash backs, sign up bonuses and frequent flyer miles.

Endless benefits? Yes please!

You actually get a monetary reward per sign up and most credit cards offer a percentage of cash back on transactions, which is great because there are always bills to pay, petrol to fill, and groceries to buy.

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Once you accumulate the sufficient number of points, you get to redeem gift cards in the form of flights, high-street retailers and supermarket shopping. You get a pleasant surprise every once in a while, so you can treat yourself and be happy!

There will be moments you have to make big purchases that you cannot afford upfront. Credit cards allow you to pay off your purchases in monthly instalments interest-free. This applies to products and services, anything from a costly dental procedure to a laptop or furniture for your home.

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Protection from the bank

An important feature of a credit card is security. Customers are not obliged to pay for purchases they did not make and will be protected in the event of a fraud as long as the bank conducts its investigations properly. If a merchant refuses to replace a defective product, most credit card companies would even resolve the dispute for you.

Credit cards are accepted worldwide, making it handy for travelling as cash is bulky and risky to carry. Instances such as hotel and car rental bookings usually insist on payment via credit cards because it holds both parties accountable and any losses sustained can be charged and traced back to the customer.

You can build positive credit for the future if you intend to buy a house as banks always need a point of reference to determine your eligibility for a loan. Some credit cards also offer annual summaries that help out big time when filing your taxes.

Owning a credit card requires discipline and self-control, but you will get on just fine by following some golden rules: set a sensible credit limit, keep track of your spending, and never skip a payment!