A credit card is a piece of plastic that lets the person who has it borrow money from a bank for a certain amount. In the right hands, this piece of plastic is a great way to handle money. It is also flexible and easy to use. Having a credit card is helpful, especially now when people shop online and over the phone. One of the many benefits of having a credit card is that it can make your life easier and give you access to a whole new world of options.
When choosing a credit card, the first thing you should do is think about how you will use it. Do you even need a credit card if you usually pay cash for everything and don't buy anything unless you have the cash in the bank? My advice would be to keep living the way you do and not get one. If you make your monthly payments on time, getting your first credit card is a good way to start building your credit score.
Before you decide which credit card is best for you, you should think about what you need from it. A credit card is different from a debit card because it doesn't take money out of the account of the person who has it after each transaction. If you have a "secured" credit card, you must have enough money in your bank account to cover the credit. Most of the time, you can get a better rate on a secured credit card after bankruptcy than on an unsecured card.
You should be aware that having a credit card is a big responsibility and that it can be easy to get into a lot of long-term debt quickly. The thing I don't like about credit cards is that the companies keep giving you higher limits, which makes it easy to get into more and more debt. Don't forget that a credit card is just a loan, so any money you don't pay back in the allotted time will be charged interest.
If you lose or have your credit card stolen, you should tell the credit card company right away. Many of us say that we need a credit card in case of an emergency, but emergencies don't usually happen when you're out shopping. If you decide that you have to have a credit card, look around for the one with the best deal, such as a low interest rate and no annual fee. It makes sense, you know.
