What is the purpose of obtaining a credit card?

The purpose of obtaining a credit card primarily revolves around building a credit history and managing expenses. When you use a credit card, you are borrowing money from the card issuer, and paying it back on time helps establish a strong credit score. A positive credit history is essential for future financial opportunities, such as applying for loans or mortgages, as it demonstrates your ability to handle borrowing responsibly.

Additionally, credit cards provide a convenient way to manage everyday expenses without the need for cash. They often come with features such as tracking spending and providing rewards, which can enhance budgeting and financial planning when used wisely. This option encapsulates the main benefits of credit cards, reinforcing the importance of responsible usage in achieving financial goals, rather than solely focusing on rewards or avoiding bills.