6 Reasons to Apply for a Credit Card

For many young adults, getting their first credit card is an important dream they strive to achieve throughout their college career. To qualify for a credit card application, they must have their first job. At the same time, debt is a two-edged sword that can jeopardize a person’s financial future in the early stages. Therefore, conservatives generally suggest avoiding credit cards until one is mature enough to handle their financial affairs independently.


Listed below are six reasons you should apply for a credit card

Building a credit history for future credit

Loans are an essential part of personal finance, both secured and unsecured, and people take out loans at various points in their lives. An applicant’s credit score determines the interest rate the lender will charge on the loan. The amount of credit you are qualified for is decided based on your credit score. A bank calculates the EBLR rate loading based on the credit score when issuing a loan. The better your credit score, the easier it will be for you to get a loan at a lower interest rate in the future. Applying for a credit card in advance will prove good for you in this regard. When you use the credit card responsibly and pay your bill on time online, you will be able to begin your credit journey early and improve your credit score over time.

Emergencies limit savings

Young learners tend not to have sufficient savings or an emergency fund since many times, especially those at the beginning of their careers, do not earn enough to cover all of their expenses during emergencies. Credit cards may be helpful in this situation. A credit card will give you access to money when you need it, while at the same time, it will allow you to plan your repayments over up to 50 days, during which you will benefit from a credit-free period. Therefore, having fewer savings does not necessarily mean that you cannot apply for a credit card for unforeseen circumstances that may arise in your life.

Take advantage of discounts, cashback, and offers

Several products offer rewards if you pay with a credit card on top of the benefits you would usually receive if you paid with cash. Credit cards represent an excellent financial tool. They can serve as an access method to credit and provide the means to make payments. Since the beginning of the twenty-first century, many customers, particularly young shoppers, have been purchasing goods and services online, and this trend has intensified recently. Young people are prone to seek out their first credit card earlier than other generations, which is not surprising.

Benefits and privileges galore

Several credit cards offer perks as part of their rewards programs, such as free access to lounges at airports domestically and internationally, OTT platforms, interest-free cash withdrawal and emergency advance. The card offers many of these privileges, and you can choose and apply for credit card as per your lifestyle.

Beware of overspending

To combat your tendency to overspend, you should determine your credit line to control your spending as soon as possible. The direction to get carried away and overspend can happen with credit cards that offer over 50 days of interest-free use, which requires no withdrawal from your bank account. The consequence of this can be soaring credit card bills, which result in no or little savings, or even worse, being unable to repay them on time, which is both detrimental financially and adversely impacts your credit score.


It’s easier to avoid fraud losses when you pay with a credit card. When a thief uses your debit card, the money immediately disappears from your account. Expenses for which you’ve scheduled online payments or sent cheques may bounce, resulting in insufficient funds, fines, and a negative impact on your credit. Even if the late or missed payments were not your fault, they could affect your credit score. While the bank investigates, it may take some time for fraudulent transactions to be reversed and money returned to your account. When your credit card is used illegally, on the other hand, you don’t lose any money—you simply tell your credit card company of the fraud and don’t pay for the purchases you didn’t make while the issue is being resolved. 


The best advice before apply for a credit card is to understand its risks and benefits, regardless of your age or career stage. Getting your first credit card is the most pleasant experience. The best way to ensure you can use cards effectively and avoid financial mishaps is to understand how credit cards work and cultivate proper financial discipline. 

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