5 Reasons Why You Don’t Need Credit Cards

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Credit Cards are great, but You Don’t Need Credit Cards

Having a credit card is like walking around with your best friend in your pocket and borrowing money from him/her whenever you need it.

Credit cards are great for impulse shopping. But You Don’t Need Credit Cards.

You’re just going to Foot Locker to buy some socks, right?

Next thing you know you’re walking out with a pair of Women’s Nike SF Air Force 1. or Reebok Answer IV. 

That was easy, a little expensive, but I have plenty of time to pay them off, and they look good with my new Nike socks.  So that’s what happens to us with our credit cards. It’s called impulse buying. You see something you like and you buy it without thinking. It’s ok sometimes; we need to treat ourselves once in a while.  The problem is if you get into the habit of doing this too often, it can lead to many credit problems.

By overspending on your cards, you raise your credit utilization which will lower your credit score making it harder to get credit. A low credit score could have an impact on your future plans, like buying a car or applying for a mortgage.

So what’s the alternative?

A prepaid debit card.

Hold on, don’t run away, read on an learn more, it will help.


5 Reasons Why You Don’t Need A Credit Card

1. The number one reason a prepaid debit card is better than a credit card is, you can’t overspend.  You can still impulse shop, but you can’t spend more than your card balance. Spend it all, and there is nothing to pay back.

2. When you apply for a prepaid debit card, there is no credit check. Your credit score could be 150 and your credit utilization at 100%, and you will still get approved.

3. Another advantage is, you will be lowering your credit utilization and your credit card payments because you won’t be using them and this will happen just by making your monthly payments

4.  If you use your bank debit card, there is always the possibility of inadvertently spending money that you had set aside for some other reason. Like paying your credit card bills. This oversight won’t happen with a prepaid debit card.

5. You can use your prepaid debit card wherever Visa and MasterCard debit cards are accepted., with zero liability for unauthorized use.

I have several credit cards, plus a prepaid debit card.

You can have several cards, and use them to set aside money for a College Fund, Vacation Fund, Coffee Fund, Entertainment fund or an Emergency Fund, or whatever you like. There are no minimum balance requirements. You can also use your card as a backup funding source for your PayPal account.

As you can see a debit card works a lot like a credit card, but with one big difference, you won’t overspend and go into debt. So, You Don’t Need Credit Cards

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