Should I get a Credit Card?
Should I get a Credit Card?
Credit Cards can be great or can be catastrophic, depending on who you ask. They have many great aspects but the Debt aspect is what scares people away! Here are 3 questions I ask myself before getting a Credit Card:
What are the Fees?
Credit Card Fees like bank fees can be astronomically high or fairly reasonable. But lookout for hidden fees such as Late Payments, Credit Usage, Credit Limit Fee, dishonoring fee, lack of funds fee, international transaction fee and interest. These are fees listed on the report but often ignored. But they can hit you like a ton of bricks if you don't take note of them.
That being said Free swiping along with other benefits can make a Credit Card more cost-effective than other accounts.
What are the Benefits?
One of the main reasons people take out Credit Cards is for the rewards or benefits. Be it Discovery Miles, Ucount, Greenback's, or EBucks; these benefits can add up!
From discounts on stores to discounted flights! Know what you can get back for using your Credit Card. Just make sure it was money you were going to spend anyway, as it can be tempting to overspend to get some of these rewards.
Why do I need it?
The million-dollar questions, well a good question none the less. Why do you need a credit card? Is it for cost-saving, for the benefits, to save, or to travel? Maybe its to split up expenses for a side hustle or for at home.
As long as you know why you are doing something, it will make sense to you!
Credit Cards don't have to be scary. I have found them to be very beneficial. Just be knowledgeable and don't spend more than you can afford. They can help boost your Credit Rating which can help with buying cars and houses in the future.
Keep smart!
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