Posts Tagged ‘credit cards’

Do You Think You Should You Have A Credit Card?

Jan 27, 2009 Credit Card Dept

Some people look at credit cards with an evil eye and they wouldn’t dare use a credit card for anything. In the past they may have had bad experiences with credit cards and there are several reasons why someone may not like them. If their past experience with credit cards was one that included a large amount of credit card debt, they would not a repeat of this experience. 

They may have had it drilled into their head not to have a credit card from their parents who have experienced the woes of credit cards, or they may just see no need for them and would rather avoid the mess altogether.

There are some people who are on the other side of the equation, they have a large stack of credit cards that take up a lot of room in their wallet. Very few people who have several credit cards they use on a frequent basis, actually pay off their balances every month, so this means that they are borrowing at a very high interest rate.   

Have you forgotten what a dollar bill looks like because you charge so many things, or do you avoid using credit like the plague?. If you’re reading this article, you are probably somewhere in the middle, or most likely you don’t have a credit card but you are thinking about applying for one.     

Your individual personality and how you react to financial matters will help determine whether you decide to get a credit card or not. If money could be managed perfectly by everyone, it would be nice, but this is not happening.

If you have trouble budgeting your money, getting a credit card should not be your top priority, because you have to be ready for credit. When you are able to stay on a monthly budget, put money into savings each month, buy what you need only and pay your bills on time, you may be able to handle credit. If it has been possible for you to stay away from being in debt, a credit card may work for you, but first think about exactly why you want a credit card in the first place.

Is it because you can’t afford the life you want to live and want to borrow money to buy what you want?. In this case, you should NOT get a credit card and you also need to seriously reconsider your financial situation.        

If it is because you just want to be able to swipe your card and go when you are shopping, you can easily use a debit card from your bank the same way. When you are asked if it will be debit or credit, and you choose credit, you will just sign and go on your way just as with a regular credit card.

When you have confidence that you can always pay your balance off every month, a credit card that earns points, such as a airline credit card, may be right for you. These cards will only be worthwhile if you always pay off your balance, or else you’d be canceling out the amount you receive from the rewards and still owe more in interest charges.

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