Almost everyone you know now has a credit card (or two, or more!), so it’s no surprise you’re tempted to jump on the bandwagon. But this begs the question: should you really have one too?

If the following list of reasons why you should get one, rings “Now this would help!” in your head as you read, then the answer you’re looking for would be a ‘yes’.

1) Convenience of use

You would only need to bring your card along and swipe it when you use it. There’s no need to get cash from a bank or ATM anymore, in addition to not having to worry about carrying a large sum of money on you, which is dangerous in itself.

It’s easy to carry around, plus you can even use it online and overseas without the hassle of exchanging currencies. In short, it facilitates the purchase of products and services online wherever you are.

2) Easy payments

A credit card bill will come itemised and detailed with the transactions you’ve made so that you can easily keep track of your expenses for that particular month. All you’d have to do is pay off the outstanding balance with a few simple clicks online. You could also pay all your monthly commitments through auto-debit to save yourself the trouble of paying them one-by-one every month.

3) Peace of mind

Once your wallet is stolen or has gone missing, the cash you have inside will be gone in the blink of an eye. However, with a credit card, you would just have to call your issuer and let them know it is missing so that it will be immediately cancelled, thus saving you from the headache of having to deal with mysterious things that you didn’t purchase.

4) Signup bonuses

It's no secret that credit card companies like to entice potential customers with the promise of a free gift which you can easily get, just by signing up with them. Most often, these gifts are pretty useful and practical. So why not sign up and receive it? If you find yourself not needing the credit card, a simple phone call to the issuing bank is all it takes to cancel the card.

5) Build your credit rating

Looking to build up your credit score but don’t know where to start? Start with a credit card, as it helps you increase your credit-worthiness when you pay for your bills in a timely manner. Keep the transactions to a bare minimum, which is to say that you shouldn’t be swiping for anything that you wouldn’t pay for in cash.

6) Increase purchasing powers

A standard credit card will normally give you a credit limit which is double that of your monthly salary. It helps you to purchase an item which you normally wouldn’t be able to afford. For example, you can purchase certain goods on an installment plan (such as a new television) and not fret about having to save for months before you could get it.

However, the installments should be paid on time, otherwise it will escalate to a costly decision. Exercise delayed gratification whenever possible; purchase using your card only when you are comfortable to do so, otherwise postpone the purchase until your finances are more favourable.

To sum it all up, a credit card would make your life easier based on the reasons above. There are also many reasons why you shouldn’t get a credit card. But that's a story for another time!

For free financial counselling, call over to any of the Credit Counselling and Debt Management Agency (AKPK) branches located in 11 major cities nationwide.

This article is brought to you by, Malaysia’s leading independent loan comparison website, in collaboration with AKPK.