Sensible Advice to Heed Before Getting a Credit Card

Irrespective of whether you’ve just decided to get your very own first credit card, or have several others in the card-holder section of your wallet, there are several things you need to bear in mind. While also being incredibly convenient for everyday use, a credit card also comes with a great responsibility on your part. Sure, paying your bills, paying for your groceries and getting your shopping done at the mall will become easier than ever. You will find it easy to make payments online or over the phone, but you will also be potentially exposing yourself to several financial risks. Before signing any contracts for a new credit card, no matter the institution you are signing with, you need to be educated on how to choose from among the best credit cards Read on below for some brief, commonsense pieces of advice on how to handle this situation.

One Card Too Many

How many credit cards do you have already? If you own two or more credit cards, then perhaps you would be best advised not to take another one. After all, selectivity is usually the best option, especially in an uncertain economic climate. If you tend to use a particular card for a particular type of purchase or service, then you basically don’t need more than two cards. Before getting another one, or even before getting your first credit card ever, figure out how you are going to pay for it and what you would be using it for. After all, with too much credit on your hands, you would be basically setting yourself up for a lot of trouble—excessive debt and spending, financial decisions that are insufficiently thought through and various other types of problems. Remember that credit cards are meant to make your life easier, not further complicate it unnecessarily.

Keep Your Spending in Check

If you receive lots of credit card offers in your inbox or mailbox, you might easily be tempted to believe that you can afford it. This is not necessarily the case, especially if you already have several credit lines up and running. As a matter of fact, lenders tend to market their products to people who already have credit cards, as they believe that they stand to make the most money off you. Their theory is that, if you can afford to be so lax with your spending habits as to take out more than one card, then they’ll have no problem charging you with astronomic interest rates.

Careful with Special Offers

As with every other field, credit cards that become available on special offer are worth reading the fine print for. If the special offer includes a zero interest rate, for instance, you can bet your bottom dollar that this type of interest will only be offered for a limited range of time—typically between six and twelve months. The point lenders make here is that, once you’ve been lured in, they can afford to send the level of the interest rate through the roof. Choose a credit card with a fixed, low interest rate, since variables are rarely profitable for debtors.