Take the plunge: 4 excuses for not having a credit card that you should stop telling yourself

Jan 26, 2020

This post contains references to products from one or more of our advertisers. We may receive compensation when you click on links to those products. Terms apply to the offers listed on this page. For an explanation of our Advertising Policy, visit this page.

Roughly seven out of 10 U.S. citizens have at least one credit card, but that still means about 30% of the population does not.

Credit cards are an integral component of personal finance. With proper use, credit cards can be tool for your finances and an inexpensive (if not free) source of funds when you need them. So why do so many people not have one?

Here are four excuses you may have used to avoid applying a credit card. We’ll show you why you should take the plunge and start using the credit you’re entitled to.

“I don’t trust myself”

It’s OK if you don’t trust yourself to be prudent with a credit card – but that’s still an excuse. Did you trust yourself to stay upright when you first learned to ride a bike? Like anything, getting comfortable with credit cards takes time and practice.

That doesn’t mean you should throw caution to the wind. Credit card misuse can result in heavy costs – late fees, interest, etc. Managing this form of debt requires the right mindset and self-regulation – such as always paying your last statement balance or setting personal spending limits each month.

If you’re worried about overspending, ease into it. Keep the training wheels on. Try using a credit card for only one type of expense (like groceries). Over time, you’ll build trust in yourself and develop the right spending habits.

“I don’t see the point”

Credit cards are a convenient, secure source of short-term debt. Plus, most major credit card companies offer incentives via rewards programs, such as cash back and airline miles.

Credit cards also build your credit. If you plan to finance bigger purchases (house, car, etc.) with long-term debt, proper use of a credit card will increase your chances of receiving favorable loans down the road.

So even if you don’t care about the perks, you should at least use a credit card to enhance your credit score. Not sure if your score could use a lift? Check out this comprehensive guide.

“I don’t need one”

You’re right. You don’t need a credit card – at least not like you need nourishment or sleep. But if you want to maximize your cash flow, earn rewards for your day-to-day expenses and improve your credit score, you need a credit card.

How does a credit card maximize your cash flow? When you buy with credit, you have the cash when you need it but you’re not actually paying for it until a later date. On the other hand, if you use cash or a debit card, that purchase is coming straight out of your wallet or checking account.

As long as you’re spending within your buying power and repaying your borrowings, you can reap the benefits of credit cards without the risk.

“My credit score doesn’t matter”

Your credit score matters.

It affects your ability to get loans and get favorable terms (e.g. a mortgage with a low interest rate). It can also factor into your chances of getting a job or renting an apartment. According to a survey, 72% of employers run background checks on potential new hires; of those background checks, about 29% include a credit check. They won’t see your score, but they can see a modified credit report that displays your payment history and debt.

If you look for housing, landlords will run credit checks before renting you their real estate. If you have a rough-looking credit history (or none at all), they might not even consider you.

To build credit, practice consistent and prudent credit card management (i.e., paying on time and utilizing less than 30% of the credit available to you). With time (because how long you’ve had credit matters too), you will boost your score.

Bottom line

You can rationalize anything – including not having a credit card. Yet a credit card can be a worthy short-term and long-term financial instrument for you. If you’ve been putting off getting a credit card or you’re new to the credit game, check out this in-depth beginner’s guide.

Delta SkyMiles® Platinum American Express Card

Earn 90,000 bonus miles and 10,000 Medallion® Qualification Miles (MQMs) after you spend $3,000 in purchases on your new card in the first three months of card membership. Offer ends 11/10/2021.

With Status Boost™, earn 10,000 Medallion Qualification Miles (MQMs) after you spend $25,000 in purchases on your Card in a calendar year, up to two times per year getting you closer to Medallion Status. Earn 3X Miles on Delta purchases and purchases made directly with hotels, 2X Miles at restaurants and at U.S. supermarkets and earn 1X Mile on all other eligible purchases. Terms Apply.

Apply Now
More Things to Know
  • Limited Time Offer: Earn 90,000 Bonus Miles and 10,000 Medallion® Qualification Miles (MQMs) after you spend $3,000 in purchases on your new Card in your first 3 months. Offer expires 11/10/2021.
  • Earn up to 20,000 Medallion® Qualification Miles (MQMs) with Status Boost® per year. After you spend $25,000 in purchases on your Card in a calendar year, you can earn 10,000 MQMs two times per year, getting you closer to Medallion® Status. MQMs are used to determine Medallion® Status and are different than miles you earn toward flights.
  • Earn 3X Miles on Delta purchases and purchases made directly with hotels.
  • Earn 2X Miles at restaurants worldwide, including takeout and delivery and at U.S. supermarkets.
  • Earn 1X Miles on all other eligible purchases.
  • Receive a Domestic Main Cabin round-trip companion certificate each year upon renewal of your Card. *Payment of the government imposed taxes and fees of no more than $75 for roundtrip domestic flights (for itineraries with up to four flight segments) is required. Baggage charges and other restrictions apply. See terms and conditions for details.
  • Enjoy your first checked bag free on Delta flights.
  • Fee Credit for Global Entry or TSA Pre✓®.
  • Enjoy an exclusive rate of $39 per person per visit to enter the Delta Sky Club® for you and up to two guests when traveling on a Delta flight.
  • No Foreign Transaction Fees.
  • $250 Annual Fee.
  • Terms Apply.
  • See Rates & Fees
Regular APR
15.74%-24.74% Variable
Annual Fee
$250
Balance Transfer Fee
N/A
Recommended Credit
Excellent/Good
Terms and restrictions apply. See rates & fees.

Editorial Disclaimer: Opinions expressed here are the author’s alone, not those of any bank, credit card issuer, airlines or hotel chain, and have not been reviewed, approved or otherwise endorsed by any of these entities.

Disclaimer: The responses below are not provided or commissioned by the bank advertiser. Responses have not been reviewed, approved or otherwise endorsed by the bank advertiser. It is not the bank advertiser’s responsibility to ensure all posts and/or questions are answered.