The credit card only becomes evil when its usage is not controlled and repayments become increasingly more difficult. As the credit card is now easily obtained, its usage and perks open up to a world of shopping and convenience. It is most commonly used to purchase air tickets, make a booking and used to earn discounts and points for redemption. It is all glitzy and fun until the bill arrives.
Just by regretting your frivolous shopping spree will not pay your credit card bills. Before signing up for one, determine the reason why you want or need a credit card. The way people use their credit card and how they end up in debt, depends hugely on their personality as well. If your ‘personality’ wants a credit card so you can make online purchases of the latest designer goods overseas, it is best not to apply for one.
But if you feel you may need the credit card for convenience in bill payments, some discounted shopping only available online and emergencies, get a credit card with the lowest interest rate. A mere 1% difference can end up as thousands of dollars if a debt starts accumulating.
Because it is very easy to spend, discipline yourself before your first credit card. Only apply for one. Arrange with the bank for a lower limit and study the interest rates and annual fees. Also arrange for increase security to avoid fraudulent purchases. Ask the bank to add an authorization feature when making big purchases. It is also important not to be lured by the rewards and perks offered. And always pay as much as possible on your credit card bill.
If you have more than one credit card but find paying it on time challenging, cancel one of the credit cards and keep the one most suitable to your lifestyle. Some fear that canceling a credit card will affect their ratings but think of how much worse your rating can get if you fall into debt.