When Do You Really Need Credit

When a holiday approaches, a lot of people spend their time on malls shopping for something they need and want for this special occasion. Most people usually burn lots of money during holidays just to get into the spirit of the event. And most of the time, we end up needing more cash to accomplish our goals. Many would resort to swiping their credit card(s) just to finish what they’ve started. While this may sound like a good idea, credit cards can actually ruin your days after these events if you don’t know how to use them properly. So, when do you really need credit to pay for what you need?

Credit cards are one of the most tempting financial tools that man has invented. This small plastic item holds enough purchasing power, that we can actually buy what we need without paying for cash right away. While this may seem amazing, getting into the debt trap cycle is actually quite easy with credit cards. In fact, more and more people are victims of a never-ending cycle of paying off their bills because of these credit tools. The same thing is true with loans. People readily apply for all types of loans that are available just to address their financial difficulties. They end up paying more loans than they’ve had before, because they depend too much on credits. Knowing when to get a credit and when to stop is vital to your financial situation in life. Don’t avail yourself of it just because it is available. It could bring you more troubles.

There are instances when credit card holders resort to debt management programs because they can’t control their use of credit cards. Although some people have an amazing self-discipline, many card holders lose their urge to buy on credit things that they don’t really need. It’s never too late to correct this mistake. While there are lots of tips on how you can change your spending behavior, there’s actually one way to make sure that you don’t resort to using a credit card based on whims and caprices. One way to avoid swiping your card is by knowing when you really need it.

Medical Emergencies

Resorting to credit is acceptable in a life and death situation. In case a family member requires emergency medical assistance, then using your credit would be a good solution. Instead of looking for people who can lend you money (which isn’t always sure by the way), why not use your credit to access the cash that you need? Although most credit companies command high interest rates and fees (if you have bad credit) when medical emergencies occur, people do not care about these. In most cases, you don’t have to get a big amount from your creditor. All you need is to have some money so that you can purchase whatever the doctor requires at that moment. Once the condition of the patient becomes stable, then you can look around for people who can lend you money for a lower interest rate and charges in lieu of your costly credit.

Unexpected Expenses

What are unexpected expenses? Basically, they could be anything that isn’t on your monthly budget. Accident is considered as an unexpected expense as everyone doesn’t expect an awful event to happen in the first place. Brace yourself that similar cases are possible to happen in your life. Being ready will help you to get financially afloat. However, there are some instances when two unexpected expenses come along your way. If the first one has already eaten up your savings, then the other problem should be addressed right away. But how can you solve the issue if you don’t have the finances to meet it? This is when you need financial assistance through credit that you can rely upon. More often than not, a credit card is your life saver when it comes to crucial situations like these.


Although education is not a full guarantee to financial security in life, it will forever be considered as one of the most important investment. As far as anyone is concerned, everyone should get an education regardless whether this would land you a job or not. Using your credit on education may not seem like a good move for some people. Although this is true, most of us actually have a hard time coping up with our expenses. So in order to get our kids to school, we need to man up and take charge of doing anything that will allow us to give our children a good education.

Using credit like student loans to get our kids to school isn’t a bad idea. Although it’s also not a good one, you can’t blame parents and students in resorting to it. While there are alternatives, credits are by far the easiest and fastest way to get financial help. Keep in mind though that student loans are among the most vital credits in funding education. Without these, it would be impossible for all financially incapable students to obtain the degrees they dream of. So using credit when it comes to getting education is an acceptable situation. After all, there’s a good chance that you can pay it off once you finish your course rather than when not having a degree at all.

When Buying a House

Purchasing a house is different from buying a car. People can live without a vehicle yet it would be hard to live comfortably without a shelter. Buying a new house or an existing one requires a lot of cash. While there are only a few number of people who can spend big amounts of money to buy a house, most of us don’t have this type of luxury. We normally resort to getting credit like as a mortgage loan. It’s one of the best ways to have the house that we want although we don’t have cash to pay for it. While a home loan is quite a burden to pay regularly, the benefits it will bring to us is worth the hard work we put to meet our obligation. The use of credit on something important like a house isn’t a bad idea. Actually, it can be considered as an acceptable decision as owning a house is essential to living a comfortable, healthy, and secured lifestyle.

Credit cards and loans aren’t bad if you know when to use them. Smart people usually keep them in their arsenal. And when the time calls for that extra financial help, then they reach in and pull them out instantly. However, they also know how to limit the use of credit to keep them off the debt cycle.

As a card holder or a loan borrower, you need to know when to get credits and where to use them. Doing so will keep you from a lot of financial problems in days ahead. Keep in mind that credits would temporarily make you feel great if not used properly. In the long run though, you’ll wish that you shouldn’t have gotten one in the first place. Be sure to know when you really need it.