What would life be like without credit cards?

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Credit Cards have become one of the most important aspect of your financial life, isn’t it? The impulsive buyer in you uses credit card for online shopping and what not. Even when you don’t have cash you don’t consider it a big deal, since you just need to swipe your credit card and do the billing. Credit cards have slowly and steadily become an indispensable part of your life. Imagine what would have happened if credit cards weren’t invented at all? What would life be like without credit cards? This might be a little difficult for you to digest properly since you are so used to credit cards. But let’s ponder how our life will be impacted if credit cards don’t exist.

Use cash for all kind of transactions

Imagine if there are no credit cards, you will have to make payments in either in cash or through your debit card. This will be a big blow to the entire idea of ‘India going cashless’. You will also have to worry about standing in a queue for withdrawing cash from an ATM. Given that you are an office goer who gets off only once a week, you will face quite a few problems.

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 No more over-spending

The credit card in your pocket invites you to spend more than what you have in your wallet. What if you have a credit card with a large limit? You might be tempted to buy something which ultimately will make a hole in your pocket. Paying through cash will only ensure that you buy what you can afford at that time. No credit card would mean no over-spending.

No dependence on credit cards till you get your salary

It happens many times that you don’t have much cash left with you to meet your daily expenses and you need to survive the entire month. You look forward to your credit card to act as your savior for rest of the month. But what if credit cards are discontinued from tomorrow night? This might turn out to be a big problem if you end up spending all your salary and don’t have a penny left. Now all you will have to do is save, save and save.

No companion in times of emergency

Suppose you need to go urgently to your hometown for a family emergency. What if you have no cash either in hand or your bank account. How will you pay for the flight tickets? A credit card at least gives you a breath of relief that you can book the flight tickets through it and pay the amount later. But in case credit cards don’t exist you have to make savings every month. In short, there will be no sense of financial security since you won’t have funds in the middle of night.

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No proof to show your strong credit history

Usage of Credit cards plays an important role in determining your CIBIL score. In case you have a credit card and you pay the dues on time, then you will be able to manage a good track record with the Credit Information Bureau of India. Since you already make the payments on time you will be bound to have a good CIBIL score. Having a CIBIL score above 750 always increases your chances of getting a loan from the bank. If there are no credit cards, banks will find it difficult to get your credit history. This will affect your chances of getting a loan.

No more exciting offers and discounts

One of the benefits of having a credit card is that you are entitled to some exciting discounts, cashbacks and offers depending upon the amount of purchases you make. You get some rewards for every particular amount of money you spend. Without credit cards, you will have to forgo travel discounts, discounts from your favorite store and even the free air miles.

No unnecessary calls or junk mail from credit card companies

There have been times when you might have received calls and junk mail from different credit card issuers. In case credit cards don’t exist your inbox folder will be free from any junk mails or offers asking you to avail the services of a credit card. This is definitely going to please you.

All said and done, you have to agree that credit cards have become an indispensable part of your financial life. Imagining your life without them would seem difficult and that’s the reason why you must value them. Use your card judiciously but don’t misuse them.

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