Credit cards are so popular today that every household has one, but to have a credit card just to follow this trend is not the right thing for you to do. Credit cards can either help you with your financial life or make your life worse.
I like to compare credit cards to investments, I think that they both have their own risks and rewards and it is up to you on how you will be managing those risks and getting those rewards. It would also be great if you put some effort in educating and preparing yourself before getting your own credit card, just like in investing.
To help you determine if you are ready to get one, here are the…
5 Questions You Must Ask Yourself Before Getting a Credit Card
- Why do you want to get a credit card?
For every person, there is a different reason why they want to apply for a credit card and as an individual you must know your own reasons. You should also know where you will be using it for, this will help you determine what type of credit card to apply for. When you have answered this question, it will be easier for you to find out the credit card that would suit you the best.
- Are you prepared personally and financially to have your own credit card?
Credit cards are good for you if you know how to use it properly and if you have the capability to clear your credit card every month or stay away from accumulating high credit card debt. When you have your own credit card, there may be a possibility that you may mismanage your credit card and dig yourself into debt, turning your credit card into “debt card”. Therefore, it is advisable to assess yourself and financial status before getting a credit card.
- How do you expect to pay your credit card bills?
This is another question that can help you in identifying what type of credit card should you get. If you can clear your credit card every month, then it would be best for you to get a card with no annual fee. If you can’t pay in full every month, then you should find the credit card that offers low-interest rates.
- Do you have a good credit score?
This question can be related on what you answered in question #2, if you’re financial status isn’t that good. You might want to focus on getting your financial life better before getting a credit card. Also, your credit score will greatly affect your chances of getting approved when you apply for a credit card.
- Where are you planning to get your credit card?
Last, but certainly not the least, is knowing where you will be getting your credit card from. Many banks here in the Philippines, are offering different credit cards with different features to suit every person’s needs and expectations. If you already know what type of credit card is right for you, then you can just search for banks that has the type of card you are looking for, compare them and get the one you think is the best credit card for you.
If you think that you can handle having a credit card, then that would be great. You may visit here to know more on how you can apply for a credit card…
If you think you don’t have what it take to have a credit card, then don’t be too disappointed, you can still get a debit card, which resembles a credit card more than anything else. To know more about debit cards, you may read it here…