Yes: If you’re able to manage your finances properly

No: If you’re not very disciplined with your finances

But, let’s get into the actual details so you can decide for yourself

Pros of Getting a Credit Card

• Safety: Carrying large amounts of cash, in my opinion, is more dangerous than carrying a piece of plastic card. Prying eyes are going to get more attracted to a thick wallet filled with cash than a thin wallet with just a couple of cards that can get cancelled immediately should the wallet get stolen
• Convenience and Flexibility: Credit cards offer unparalleled convenience, allowing you to make purchases both in-store and online. They can also be a lifeline in emergencies, providing immediate access to funds
• Builds Credit History: Responsible credit card usage can positively impact your credit score, which plays a crucial role in securing favorable terms for financial products, including life insurance. This comes in really handy when you’re trying to apply for a loan
• Rewards and Perks: Many credit cards come with reward programs, offering cashback, travel benefits, or discounts. These perks can be a valuable addition to your financial toolkit when utilized wisely. If you’re already gonna spend the money, why shouldn’t you get rewarded for it?

Cons of Getting a Credit Card

• Potential Debt Accumulation: Mismanagement of credit cards can lead to debt accumulation. High-interest rates and late payment fees can quickly spiral out of control, impacting your overall financial health. Coming back to the introduction, if you’re not disciplined with your finances, avoid getting a credit card
• Risk of Identity Theft: Online transactions and credit card usage pose a risk of identity theft. It’s crucial to adopt secure practices and monitor your accounts regularly to mitigate this risk
• Impact on Credit Score: Late payments and excessive credit card debt can negatively impact your credit score, potentially affecting your ability to secure affordable life insurance rates. This includes forgetting to pay on time

Other benefits, such as insurance

Depending on the credit card that you’re getting, here are some perks that you may be able to enjoy:

• Lounge access: Some credit cards give you access to airport lounges across the world, giving you additional comfort while waiting for your flight
• Travel insurance: While other credit cards may provide you with a complimentary travel insurance if you book your flight with it
• Cashback: Cashback specific cards will pay you back a certain percentage of the amount spent for things such as groceries, petrol, etc

A more uncommon one in Malaysia but started seeing across the world – insurance:

• Car insurance: Recently (as of writing), we started seeing a new product being introduced where ladies get to enjoy a discount when renewing their car insurance. But to add to that, if they have a strong credit score, the discount increases
• Life insurance: Similarly, there are products not yet in Malaysia (as of writing) that rewards citizens with a good credit score by giving them a discount on their life insurance premium

Conclusion

A credit card can be a good addition to your lifestyle, if you have good financial discipline. Getting rewarded for spending money on the things that you’re already going to spend on can never be a bad thing. However, you know your level of financial discipline better than anyone else, you’ll have to decide whether or not a credit card would be a good addition to your lifestyle.

If you’re thinking of getting rewarded for living a healthy lifestyle by means of a lower insurance premium, we may have what you’re looking for. Get your life insurance quote now!