Should You Give Up Your Credit Card or Not?

Are you thinking whether or not to give your credit card up? Do not worry, you are certainly not alone. In fact, you will find some men and women who no longer make use of one. Nevertheless, if you are in Singapore—or any other country, for that matter—there are advantages of keeping at least one credit card.

Do Not Give Up When:

You need to build or maintain your credit history.

One of the best ways to have your credit history is to keep a credit card. This is because the one who requested for your credit report will have an idea of what a good debtor you are. It will also mean that you have developed a good relationship with your credit card company.

When you have excellent credit history it will be much easier for you to apply for a loan or another credit card. You may need the funds to purchase a home, fund the educational plan of your children, or buy an insurance policy or a car.

You are in Singapore.

A lot of credit cards offer support to those who decide to move and live in Singapore. Amex, for example, offers Global Assist 24 hours a day, 7 days a week. Moreover, if you order goods from other countries, the items may be provided with purchase protection. You can obtain a refund if you are unsatisfied with them or if they get lost or damaged.

HSBC Premier has special privileges offered to those who are moving to another country. Besides their 24-hour support, it can also offer you rewards and points you can enjoy while in Singapore. It will be convenient for you to apply for home and educational loans. Another popular bank that issues credit card in Singapore is Citibank.

Some transactions would require a credit card. As a matter of fact, the only way you can request for a credit report is to pay $5 through a Visa or MasterCard.

You need extra cash.

Credit cards are usually considered cash. As soon as you have them swiped, the amount is instantly debited into your account. If you are new in Singapore, you will surely be unfamiliar with the cost of living (though it is one of the most expensive countries in Asia). When the going gets tough, and you are not completely liquid, you can always count on the credit cards to help you get by.

You want to take advantage of insurance.

Some credit cards provide additional benefits to their members such as health and travel insurance. As long as you use them wisely, they can be of great help. What’s more, there is a good chance that the insurance coverage will be extended to your immediate family members.

Give Up When:

You can no longer pay.

It is completely useless if you still maintain a credit card when you no longer can afford the repayments. However, before you officially give it up, consider talking to your credit card company first. If you are having a difficult time making repayments, you may be given a grace period. It is also possible you can ask to lower your interest down, especially if you have been a good payee until now. A lot of these companies are willing to study your case and reconsider. They would surely like to keep good clients in their accounts.

You have too many of them.

The most advisable number is two. This way, you can keep the other one as a backup. It is not a good idea to have plenty of credit cards in your wallet. They normally spell trouble for you. You will find it difficult to monitor all your repayment schedules. They will also not appear too well in your credit report. It may tell your future creditors you are having a hard time paying off debts, so you are counting on credit cards.

If you are in doubt which to give up, start with the newer ones. Keep the older ones as they are ones that may have provided you with good credit history. Moreover, most likely you have already built good partnership with the credit card company.

You prefer to pay in cash.

Some people would just like to pay their goods in cash. That is still all right, but you still have to remember that credit cards are needed to have your credit history. You may consider paying goods purchased online through your credit card instead. That will also save you the hassle.

The truth is unless the credit card company is the one that decided to sever ties with you, to give up the credit card or not will remain your choice—your preference. Hopefully, after you have read the reasons above, you can make a good decision as to what to do. 7T