Because you’re employed in a stable company, you’ve been receiving countless credit card offers from different banks. They told you that these come at very low-interest rates and the bank can offer promos which are apt for monthly income. They even told you that if you sign up with them, you’ll be able to qualify for freebies. And while this kind of offer might be tempting, you’re still not sold to the idea. For one, you’ve known people who have credit cards, and they told you how stressful it can be once they’re not able to pay for all of the fees every month. To come up with a sound decision of whether or not to get a credit card, you should first consider its pros and cons.
First off, you can expect to experience these benefits when taking out a credit card:
1.You’ll have more purchasing options: Because of technology, you can purchase more items with the use of credit cards. You can buy items over the phone and internet if you have a credit card. You’ll never have these privileges when you only have cash.
2.Credit cards are faster to use: Unlike when you’re using check or cash, using your credit card for any kind of purchases is easier and faster. You no longer need to check for bills in your wallet or to write details on a cheque. Just one swipe of your card and you’re done!
3.You can pay in installments: This is one of the reasons why people would opt to have a credit card. When they have one, they can have the option to pay their credit card balance over a period of time. You don’t have to pay everything in full outright.
4.Your credit score will improve: When you pay your credit card fees on time, your credit score can improve over time. This is very helpful when you’re planning to apply for mortgage or an auto loan in the future.
5.You’ll have enough funding for emergencies: A credit card can be an easy solution during financial emergencies. Instead of getting any amount from your savings, you can easily use your credit card. With a credit card, you don’t need to make drastic changes in your budget just so you can finance an emergency.
6.You don’t need to carry cash: When you use credit cards during your shopping trip, you’ll be safe from thieves and other similar crimes. Since you’ll be doing everything with a credit card, you don’t have to carry large amount of money or stop for any ATM just to get money. You’ll be safer with a credit card.
On the other side of the coin, taking out a credit card also comes with a few cons, and these are:
1.You’ll be tempted to spend more than you can afford: Because of the convenience of using a credit card, you’ll be tempted to purchase anything – even with items which you don’t need and can’t afford.
2.You’ll be susceptible to debt: Purchasing too many items within terms which you can’t meet can become the reason why you’ll end up in debt. When this happens, your credit score and life can be affected negatively. And most often than not, it’ll take years for someone to get back on their feet once they’re covered in debt.
3.You’ll encounter unfamiliar terms: When it’s your first time to apply for a credit card, you can easily get confused with the terms and jargons found in a credit card agreement. Understanding terms pertaining to credit card use is crucial so you won’t end up putting yourself in too many risks.
Decisions that involve your money should be carefully thought of. You shouldn’t jump into making one just because of peer pressure, or you think this will be a status symbol. On the contrary, you should acquire something because you need it and you feel that your life will be easier with it – the same goes when you’re taking out a credit card. Even if you’re offered with the most popular credit card, if it’s no longer apt for your budget and needs, politely decline. You should only make decisions that will make your life easier, not harder. Good Luck.
About the writer: Amelia Smith believes that the key to understanding something isn’t always about how good the explanation is, but how engaged you are with the learning process. As such an integral aspect of her pieces for sites such as Go Bear is to ensure that insurance and banking concerns of her readers aren’t tackled just in a technical sense, but also in a way that they can relate to their lives.