How badly do you need a Credit Card?

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Credit Cards

Credit cards today are one of the most popular financial tools. The use of credit cards has now become synonymous with status and ease. But credit cards tend to be a pretty explosive financial instrument to own, used correctly these cards have the potential to make you save on almost anything and everything that you buy. However, if not used with care, credit cards can lead you to vicious cycles of debt or bankruptcy.

The ultimate position of any credit card is decided by the user who puts it to use for purchasing various goods and services. Nobody can deny the ease and convenience that Credit Card Offer. The idea of paying hefty bills and making with just a single swipe of a piece of plastic sounds too cool and to be ignored. Credit cards can act as a boon or bane depending upon the care taken in using them. There are several positive reasons why availing a credit card is an important and useful part of of a customer’s financial portfolio. But whether you as an individual have the right reasons to apply for a credit card is a matter that demands closer review.

Things to tick off before you apply for a credit card

Here are a few checkpoints to go over before you decide on getting a credit card.

Your creditworthiness

Your credit history or overall credit score plays a very significant role in deciding whether you are eligible to avail a credit card. All major banks and lending institutes disburse credit cards and their corresponding credit limits by looking at the borrowing history of customers. This includes various types of borrowing along with their payback tenure. However, in case you do not have any previous borrowing history in terms of loan etc. then it can both be good and bad. Good since your credit history cannot go wrong and bad because it means you do not have a credit score. In such a scenario the most basic beginner’s credit card is the one you should start with.

Stability of current job

Banks generally look at your job stability if you are applying for a credit card. This is because credit cards generate regular monthly bills which need to be paid and as such a source of regular, stable income becomes crucial for obtaining credit cards. Banks ask for employment letters and salary slips when you apply for a credit card.

Financial responsibility

Credit cards come with a certain amount of financial responsibility. If you are a person who pays his/her bills on time and makes budgets for monthly and yearly financial expenditure, then you could very well be ready to shoulder the responsibility of owning a credit card.

Understanding the way credit cards work

It is extremely important to not think of credit cards as just some cool financial tool that keeps financial hassle at bay. Although credit cards are great financial instruments to hold, their cons, if not watched out for, can be detrimental to both your credit history and score. You should use your credit card well and it will serve you well with various benefits, discounts and deals across a host of shopping outlets.

In case you have ticked off all the above listed points, then you are surely ready to get your hands on your first ever credit card. However, you have to realize the end use towards which you wish to apply your card. Decide between card categories like shopping, entertainment, travel etc. depending upon your need. Also, look for cards that offer greater benefits at lower annual fees. This will ensure maximum profit at minimum cost. So, go ahead and enjoy a world of amazing offers and deals with your credit card!

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