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Perhaps the reason that people don’t have good credit is because they don’t understand why credit cards are important. People will tell you that buying stuff is the reason for credit. They will tell you that emergencies are the reason for a credit card. Yes, in a vacuum both of these things matter but that is only in a vacuum. Credit cards serve a far more important purpose than that.
The reason people need to give themselves credit cards is to build credit. Just because someone issues you a credit card doesn’t mean that you have good credit. Many times people think they have good credit but are turned down for a loan on something they need because they don’t have enough established credit.
The reason a credit card is important is it shows those looking at your money situation that you are someone who can make an agreement with a bank and hold your end of the bargain. It shows that when you tell someone you are going to pay them, you do just that. Everything from online personal loans to car loans are done with the prospect of trust.
Of course, emergencies are a part of it, but they should only be a very small part of it. If you are saving for your rainy days then there is really no reason for you to be using a credit card. Learning this is important because knowing the right uses for a credit card will make a big difference in how you establish your credit. Credit is important but not for the reason that you think it is.
