Are You Prepared To Own a Credit Card?
Though a credit card seems like another tool that helps you make purchases, however, it is much more. If used responsibly, your credit card will help you grow your credit history.
Having a credit card might be important for a young person’s to-do-list. But are you able to manage it properly?
Even then, wanting one will differ with you being prepared to manage the obligation of owning one. Are you truly prepared to own a credit card? First, learn more about credit cards before landing yourself into financial trouble of statements and exceeding credit limits.
Below are some signs that indicate you can handle this responsibility!
Are you Financially Responsible?
There are some important questions that you need to answer to help you figure out if you can handle this responsibility. Some of these questions include: Do you settle your bills punctually? Can you control your habits of spending? Do you have a monthly budget? This questions will help you know if you can manage the having a credit card and not run it up on hefty bills.
Since personal loans require discipline, it’s important that you be responsible financially. And this will help you know when and how to use a credit card. Remember not dealing with payments will eventually cost you more in fees and interest.
You have a stable job
With a steady job, you are at least more certain than doubtful regarding some things. When you are employed on a short contract or are still on probation, it’s understandable to think that your job isn’t secure.
To qualify for a credit card will mean that you have a permanent job. Several banks will even ask you to present them with an employment letter and confirmation. Even without considering the process, it is very important that you consider this carefully. This way, you will not end up jobless and have to rely on the credit card as your crutch. This will not end well for you.
You Are Creditworthy
This point is what will determine whether you get you to get an approval or a rejection for your application. Being a new entrant to the workforce; it is probable you do not hold any kind of a personal loan. This means you don’t have a payment history which makes it difficult for moneylenders to decide the type of borrower you’ll be.
But then, this does not imply you will be ruined – it is advisable you start with a basic card and ensure you have worked for about 6 months and have payslips! With this, you will start getting more attractive to moneylenders.
You understand How They Work
Do you know how credit cards work? Are you aware of how the interests are charged, what a credit limit is and how payments work? When you don’t knot the answer to one of the questions – it is best to wait as you learn more about the credit cards.
Getting any financial product implies you know what exactly it is. Another added advantage is when you also know ways to safely keep your card and ways to make the most of it. There are many tips that you can pick up by learning more about credit card use and maximization.
Helpful Tips On Using Credit Card
Shop around for various credit cards. Compare interests and other card terms since they differ greatly between several moneylenders. Also, there are different kinds of cards, like cards which are secured by borrowers depositing some money to cover purchase made. Ensure you know the type of card you want to get and what your moneylender is giving you.
Limit how many active cards you hold, this will help you avoid acquiring lots of debt. In having fewer cards, it is a lot easier to handle your finances. Also, you are able to control excessive spending. You might have to ignore those tempting offers which will pull you towards acquiring more cards and let your spending go out of control.
Look around to know the deals that each offers. Some cards offer roadside help, yet others give airline deals, such as free baggage checks. Other cards will provide buyer protections, way more than what stores offer. And based on your purchasing habits, you might find a single credit card which will offer you benefits that will best suit you.
Shred statements and old card receipts. How can you do this? It is easy to get an affordable home-office shredder for this task. Keep in mind that these statements and receipts often bear your card number, and should a dumpster diver happen to find that number, they will use the card without you knowing it.
Consider moving a high-interest card balance to one that has a lower rate. Doing so will save you some money each month. In order to pull in new business, Credit card providers give special first rates on their cards. When you choose to take advantage of these offers, ensure that you know the introductory period offer rate will last.
Just take note that even when your credit standing is not in the best shape, you still can get a credit card. Once you choose to get one, you will basically have two to select from. You can either select a secured credit card or opt to be authorized as a user on a family member or partner’s credit card.
The bottom line
As you consider getting a credit card, it’s important that you recognize it for what it really is: a financial tool. With this in mind, this card can be good or bad based on how you use it. Remember that without a user, a credit card cannot swipe. Use your credit card well and you will get the most from it starting with getting perks to growing your credit score. Once you know the above-mentioned pointers about credit cards – then you are ready to own one!