Top 8 Reasons for Not Having a Credit Card

Do you ever wonder why people who are eligible for a credit card do not own a credit card? Pointshogger decided to look a little more into this by speaking with a few people and doing a bit of research on our own.

1) Credit Cards are Not Safe. Most people believe that using a debit card or using cash is a better option than using a credit card as it is safer. Many credit cards actually protect you during travel and purchases. For example, price protection means that if you find a lower regular price of an item with 60 days from the day of purchase, you may get reimbursed for the price difference. This is something cash or debit card does not offer.

2) Interest Rates are High. Many people believe Interest Rates are high and they will spend most of their life paying off debt with interest. As long as you`re paying your bills every month, then you don’t need to worry about how high the interest rates are because they become insignificant.

3) Credit Card Rewards is a Scam. Many people believe that sign-up bonuses are a scam and there are additional fees or strings attached to your application. The truth is, with all the competition nowadays you do not even need to pay an annual fee for cards in return for some sweet sign up bonus points.

4) Credit Cards will Damage Your Credit Score. It is often believed that having too many credit cards will hurt your credit score, but it is actually not having enough credit history which will have an effect on your credit score.

5) Credit Card Companies Don’t Protect You, They`re Out to Get You. When you use a credit card, you have more protection than using cash or debit card because the card issuer is liable if the transaction goes wrong. If the retailer makes a faulty purchase, you have the right to claim a refund through the card provider.

6) Credit Cards aren’t Always Accepted. For those who worry that the next time you make a big purchase overseas they won’t accept your credit card, you can think again. Credit Cards such as Chase Amazon.ca Rewards Visa Card charge zero transaction fees, which beats holding a wad of cash in your wallet.

7) Having Debt makes me Nervous. With online banking, you can easily get rid of that debt by paying it off as soon as you have made the credit card purchase. Having a credit history will build your credit score if you ever need to get a mortgage or loan in the future.

8) Using Cash is better because I am Aware of my Spending. Actually, in today’s society it becomes much harder to keep track of cash spending as purchases made on credit cards can be easily tracked on your monthly statement. Additionally, you can even keep track of the type of spending you make each month as credit card statements categorize your purchases.