Having a credit card isn't the same thing as having credit card debt. If you have your money spending habits under control, having a credit card is a money smart thing to do, here are three reasons why:

1. Buying power. These two little words can mean a multitude of things. When you have buying power your emergency fund is that much larger. Home owners especially should use this power as when things go wrong with a house, it usually takes a large sum to fix it.

2. You have a extra sense of safety because you don't have to carry cash when you travel or use a debit card on the internet.

3. It helps you establish credit. Your credit is very important when you want to buy a house, buy a car, get loans for college, etc.

4. The ability to withhold payment on an item or purchase over a dispute. Some credit cards offer this service and it gives the consumer the power to get what they paid for - or not pay for it.

5. Life has many bumps in the road, not to mention it's winding paths. Should you hit one - not have any cash on you and you're out of gas or you're in the emergency room and they are demanding $50 co-pay - you will have the ability to fix that problem.

While there are pitfalls to having a credit card that money smart people strive to avoid, the overall benefits outweigh them.