Getting A Credit Card? Here’s What You Need To Know
Plastic money undoubtedly provides people with various advantages. However, such conveniences could also be made into an opportunity to create problems. It is for this reason that you should read more about credit cards before signing up for one.
It gives you the convenience of not bringing cash with you. With the rising cases of theft and other similar criminal offenses, bringing cold hard cash wherever you go can be nerve-wracking, not to mention dangerous. Most cards can also be used internationally for a minimum fee thus making it the perfect companion for people on the go.
Fees, fees and more fees
A credit card only becomes a source of problem when one abuses it. For one, these financial products work by getting interest on people’s unpaid and overdue bills. There may also be financial charges that come with the use of the card.
Furthermore, there is sometimes a one-off annual fee incurred on a yearly basis. Such fees are what you might want to consider prior to getting a card yourself.
Each account also has what they call a credit line or credit limit. This is the maximum amount you can charge on your card. Banks have different rules when it comes to credit limits. Some give bigger credit lines to cardholders who have higher salary or fixed income. There are also programmes wherein good credit standing and loyalty to the bank enable cardholders to have higher credit lines.
Cardholders could also earn points when they use their cards. The number of points accumulated for a certain period enables the cardholder to get rewards, freebies, and discounts. Again, not all banks offer such programmes.
Prepaid credit cards
Aside from traditional ones, you could also opt for prepaid ones. These functions like a debit card. Not all banks offer such products, but for those that do, you can reload the card at particular branches.
There might be fees for the transactions but they are generally very minimal. People who want to build their credit score usually get a prepaid one that offers credit rating improvements.
You should note that identity thieves are always on the lookout for preys. It is for this reason that you should practise precaution, especially when shopping online. Never divulge important information such as your card number, PIN, and other personal details to unverified websites or online shopping sites.
Also, never transact with people that you just met over the Internet, or businesses that don’t have credibility. It’s likely that identity thieves are lurking, waiting for their next prey. Look for stories of identity theft victims on the Internet. You’d notice that most of them stemmed out from divulging confidential information to unverified merchants.
It’s not hard to get a plastic card to spend with. Some banks even give pre-approved ones to selected individuals. The only challenge lies on how you would avoid the temptations of getting things you don’t have the budget for.
Look at it as a challenge to ingrain more discipline in the way you spend.