8 Reasons Low Salary Individuals Want Credit Card

Despite having a low salary, many poor earning individuals consider getting a credit card for various reasons. Although this may seem counterintuitive, there are several factors that contribute to this trend.

Let’s explore some of the key reasons why poor income earners want credit card:

(1) Emergency Fund: Credit cards can serve as a temporary emergency fund for low salary earners. In situations where unexpected expenses arise, such as medical bills or car repairs, having a credit card can provide a safety net until the necessary funds are gathered.

(2) Flexible Payments: Credit cards offer the flexibility to make purchases and pay for them over time. This can be particularly helpful for low income individuals who may not have the upfront funds to make larger purchases, such as appliances or electronics.

(3) Building Credit History: Having a credit card and using it responsibly is a way to establish and build a credit history. A good credit history is important for future financial transactions, such as obtaining loans for a car or a home, and can potentially lead to better interest rates and terms.

(4) Online Transactions: Credit cards are often required for online purchases and transactions. Low salary individuals may want to have a credit card to participate in online shopping, pay bills online, or subscribe to various services that require automatic payments.

(5) Rewards and Cashback: Some credit cards offer rewards programs, cashback, or discounts on certain purchases. Even with a low income, individuals might see an opportunity to earn rewards or save money on purchases they would make anyway.

(6) Emergencies and Unforeseen Circumstances: Having a credit card can provide a sense of security in case of emergencies or unexpected situations. It can act as a financial cushion when there’s a sudden need for funds that their current income might not cover.

(7) Credit Score Improvement: Responsible use of a credit card, even with a low income, can contribute to improving one’s credit score over time. This, in turn, can open up more financial opportunities and better terms on loans and insurance in the future.

(8) Convenience: Credit cards offer a convenient way to make transactions without carrying cash. They can be used for everyday expenses, like groceries and transportation, without the need to carry physical currency.

It’s important to note that while credit cards can offer benefits, they also come with potential pitfalls, such as high-interest rates and the risk of accumulating debt. Therefore, it’s crucial for individuals, regardless of their income level, to exercise responsible spending habits and manage their credit card usage wisely. Seeking financial advice and education can help low salary individuals make informed decisions about whether or not to obtain a credit card and how to use it effectively.


Hi, I am Nikesh Mehta, owner and writer of this site. I’m an analytics professional and also love writing on finance and related industry. I’ve done online course in Financial Markets and Investment Strategy from Indian School of Business. I can be reached at [email protected].

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.