Credit card debt has reached astonishing levels since the convenient little plastic card was first introduced in the 1950’s. This has had an enormous impact on the economy of the country and the way we look at money and credit.
Do you reach for a credit card more often than you reach for cash? Do you know how important one late payment is to your credit report? In schools today we are not taught the importance of establishing good credit. Credit cards are important and can be used as a positive tool in establishing and maintaining good credit.
Before getting a credit card or applying for a second card, you should learn about the different types of credit and the pros and cons is using credit cards, how to manage your debt load effectively and know how much credit you can handle. Read the fine print as this can have a dramatic effect on your debt.
With so many credit cards available today, sit down and determine some facts about your personal credit card needs. Compare different companies and get the lowest interest rate available. Ask yourself the following questions.
- how much credit do you need?
- Do you travel worldwide?
- Will you be paying off your balance monthly?
- Do you have savings or disability in place in case you lose your job?
- Are payments flexible?
- Do I get travel benefits and insurance?
- Can I transfer in balances from other lenders?
- Can I get a larger line of credit?
- Is my card secured online?
- What happens if my card is lost, stolen or used illegally?
- Do I get Internet access to review my account?
- What is my annual percentage rate and does it ever change?
- Can I pay bills online with my credit card?
- Can I get cash advances?
- What are all the fees associates with set up, late payment, cash advances etc.?
- Can I get a spousal card?
Credit cards today are convenient and versatile and offer security and peace of mind. In case of emergencies they are a lifesaver. Every company has different rates and benefits so take the time to do some research and get the best card available to best suit your needs.
