Things You Would Need To Consider Before Getting a Credit Card

Things You Would Need To Consider Before Getting a Credit Card

Credit cards are just the right amount of convenience the fast paced generation needs. Waiting for things till you save up for them is a concept that no longer exists. It is a now or never generation, and credit cards are a befitting mode of purchase. 

Here is what you may need to consider before getting a credit card

  1. Know the purpose – Consider why you would need a credit card in the first place. What is it that your credit card may come in handy which your debit card cannot? Once you know your purpose of getting one, using it becomes a more frugal process. 
  2. Consider the credit limit – There are no free lunches. And if a credit card makes you feel so, you might need to check your credit limit, lest you exceed it by a huge margin. Avoid maxing out your credit limit, as it can hurt your credit scores in the long run. 
  3. Know when you would be fined – There are innumerable ways in which a credit card issuer can make money off you. There are penalty charges if you pay your bills late, or if you exceed your credit limits. Understand all the terms and conditions before you actually get one for yourself. 
  4. Stay clear of very lucrative incentives – Quite often, credit card issuers offer reward programs to customers to lure them into getting a credit card. Look for a programme that benefits you in the long run. Be mindful and take note of reward expiration dates. This way, you would be a vigilant customer; too hard to fool. 
  5. Interest rates – Check out whether your Interest rate is a fixed rate or a variable rate. A variable rate can fluctuate, thereby disrupting your budgeting estimates. 
In summary

Using these pointers, you would be a tough nut to crack. Be alert and stay clear of scammers. Know that everything comes for a price, and someday or another you would have to pay it off. Remember to bite only as much as you can chew.

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