Credit card seemed to be a status symbol for some but it does not mean that you are rich if you have one. Make sure that you do not get ahead of yourself or you will end up buried in debt. The bank will let you have a credit card if it deems that you are capable of paying, it is a double edged sword as it can be a great tool and also it could be your financial downfall.
Before you sign up for the credit card ask yourself about some simple facts.
It is a need or just a want?
Take some time and think about the real reason that you have to get a credit card. If you only want it because you thought you can buy anything you want with just one swipe, then that is obviously the wrong way. You might end up buying too much than you can pay for.
Also, evaluate yourself. If you can use cash, debit card or check to cover your daily expenses and the bills, then a credit card might not be needed. Credit card is great when you need to buy something but you can only pay it in installments. You can also use it for emergency. Do not just get a credit card because of the rewards, promotions and rebates. Make sure that you really need one.
Does it fit in your lifestyle?
If you decided that a credit card is a need, the next step is to evaluate your lifestyle. Can you control yourself when you go shopping? Can you buy just the things on the list? Of not, then it could be dangerous to have this card in your wallet. Always remember that when you get something with a credit card, you are putting yourself in financial debt. Can you control yourself when shopping?
Can you handle a debt?
In every swipe of the credit card, you put yourself in a debt. Are you ready to pay the bills each month with interest? If you can’t pay for this month the bill will be carried over for the next month, making it even bigger. If you are just considering to pay the minimum each month, imagine how long you will put yourself in debt, each month bills will come in showing what you bought and also with the interest.
Can I pay it?
Those who have credit cards are the ones who usually have stable income. Work is the primary source of money and if you have a credit card, it will change the way you receive and spend money. You will have to make a good budget plan to slip it in your expenses without sacrificing your own needs.
How will you use the credit card?
A good use for credit card is when you pay for a new house or when you buy appliances that you need in your home that you can pay in installments. You can also used the card for credit history or get perks and points when shopping or flying in a plane. Know the best card that suits your need well.
Do you have an organized financial situation?
It may be risky to have the card when you have a lot of financial obligation. You might just putting yourself in debt, if you do not have an allowance in your budget, then maybe it is not yet right for you to have one. Evaluate yourself if your budget is already tight, if you have complete control in your finances and if you have self control.
Before you get a credit card, ask for some advice of those you know who have a credit card, read news and blogs in the internet and be sure that it will be a gool financial deal, not a spade to dig your own debt bed.
