Do I Need A Credit Card?

Person Pulling Carolinas Telco Card Out of Wallet


Credit cards often get a bad rep, but they are necessary for your financial health. Used responsibly, they can help build your credit and increase your access to financial products.

Why do I need a credit card?

It’s understandable to want to avoid the risk of overspending. However, when used responsibly, Credit Cards are an essential part of building credit. Opening your first credit card doesn’t have to be scary. If you want to take the temptation out of spending beyond your means, a secured card may be the option for you. A secured card is a type of credit card that requires a cash deposit equal to your credit limit. This type of card can be a good option for building credit or establishing a credit history.

Beyond that, there are several other types of credit cards. A rewards card allows you to earn different merchant rewards or cashback on purchases. A Low-Rate card is a low-interest option for those that would rather forgo bonuses and save on interest. These types of cards may be a good fit for someone that carries a balance month to month.

Not sure which would be the best credit card for you? Explore your card options

What are the benefits of using a Credit Card?

Credit Cards help you build credit and can also provide additional security. Most credit cards have built-in fraud protection, which makes them a smarter option for online shopping. Usually, there is limited liability for fraudulent purchases with credit cards. If your card is ever lost or stolen, the credit card company can assist you with resolving the matter. In contrast, if your debit card is used fraudulently, that money is taken immediately out of your account. This money will often be returned after you contact your financial institution, but it can trigger insufficient funds or returned items fees in the meantime.

A credit card could be helpful beyond cases of fraud, especially with merchant disputes, refund issues, or vendor errors. Additionally, credit cards can be used as a tool to provide immediate funds if you are waiting for money in your checking account during an emergency.

Not sure what option is right for you?

We’re here to help! Since 1934, Carolinas Telco Federal Credit Union has been helping our members with all of their financial needs. Contact us today to discuss what credit card option is best for you. Or, if you’re ready, apply for a credit card here.


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