However, it is important to have a month or two of savings in the bank for emergencies. Bonds have traditionally lagged behind stock as a long-term investment. Compare and contrast various types of life, health, and other insurance alternatives. This means credit card purchases are much more expensive than those paid in cash. Credit cards are important to have even if they are rarely used.
Some merchants require credit cards as form of identification.
It is difficult to buy certain goods or even rent a car without a credit card. Credit cards are more convenient. If you do use a credit card, pay the balance in full each month. Choose a card, like Discover, that pays you cash back or gives you frequent flier miles. You can pile up debt to the point when you can't pay.