There are many benefits that having a credit card offers, if you use them as a means of payment: you do not expose yourself when loading cash, you can make purchases online without major problem, they are comfortable, more and more establishments are they receive, in some cases you get discounts, and many other facilities if yu use them correctly.
However, if you see this instrument as the way out of all your ills, as an inexhaustible source of financing and handle it without the responsibility it deserves, you can have serious financial problems, damage your credit life and end up in debt.
Applying for or accepting a credit card should not be decided on the run or on impulse, if you have never taken one out or if you already have and are thinking of taking out a new one, Knowing More Being more asks you 5 questions for you to solve yourself and Based on the answers and your particular situation, assess whether or not it is in your best interest to do so.
Do you really know how a credit card works?
It is not a savings account or a checking account, the money you have there is not yours, it is money that the bank lends you, therefore, the amount you use must always be returned.
Of course, you can use it to face an unexpected expense, or buy a good without having to wait to make a savings, but keep in mind that if what you acquire is not paid in installment, that money will have associated interest for which it also must answer.
Do you really need it?
Maybe you want a credit card just in case, or because your acquaintances have one (or more than one), but the ideal is to have a clear purpose with it. Take advantage of it for discounts in a store that you frequent or to buy that ticket or product that you cannot buy without the card.
It is not advisable to accept a card if you are not going to actually use it, but not when it is your salvation and you are going to use it to the fullest and you will end up in debt worse than, perhaps, you already were.
Do you have income to vouch for it?
If you do not have a stable income, you do not have a job that allows you to cover the monthly payments of your new card, do not take it out. If your intention is to use it as a deferred payment method, can you respond without problems for the interest?
In case of not having or losing your job, do you have an emergency fund that allows you to meet the payments without inconvenience?
In conclusion, if you are not sure how you are going to pay for the money that you are going to use, and that it is not yours, do not use it.
How good pay is it?
Paying on time is very important. If you have more debts and are having a hard time meeting them, it is not a good idea to pressure yourself with a credit card, which is ultimately one more debt.
Additionally, if you know that a card is going to be a temptation to go out of your budget and spend more than you have (remember that the value they lend you is not necessarily your real debt capacity) you should reconsider your request and be honest with you same.
Are you clear about the benefits / costs of that card?
Ask before deciding on one or the other card what they offer you and how much it will cost.
Credit cards can have additional benefits, such as miles, discounts, points, among others, choose the one that is useful for you. Of course, before you must take into account key aspects such as: will you have to pay a monthly or annual fee for the maintenance of your card? If you make your purchases in installments, they will charge you interest. Do you know what the interest rate is? Of course, you have to compare between several entities and look for the best option.
Analyze all these points, if the answers are positive, credit cards will help and make your life easier. On the contrary, if after evaluating the questions you think that it is not the time, it is better to be honest than to earn another headache, and to apply when or when the situation or your financial habits improve. In any case, the more information you have about the card you are going to request, the better; As we have told you, it is a good product, but it carries some risks for your pocket if the handling is inadequate.