Most people like having at least one credit card in their wallet, whether it’s just to always have some money on hand or to have some emergency money when they need it. Not everyone is wise with credit cards though, and that “smarts” begins the moment you decide you want a credit card. You need to put it in action before you even apply.
Credit cards can be good for you or they can be bad for you. The main determining factor is how you use them. Here are some tips for finding the right card for your life.
Look At APR And Interest Rates
Start by looking at how much extra you’re going to be paying when you use your card. You may think that your interest rate is all you need to worry about, but you also want to consider your APR, as well as whether or not your card has any yearly or monthly fees (not all credit cards come free, especially if you have less than stellar credit).
You can find some credit cards that come with a 0 APR in the beginning. Make sure you check out reviews on them to find out which ones are most legit. You might even want to do a little research on any credit card company you’re considering, even store cards.
Do You Have Bad Credit?
If you have bad credit then you are going to want to be especially careful when applying for credit cards. If you apply to the wrong ones you are just going to get declined, and that is going to reflect poorly on your credit report and score.
There are credit cards out there for people with bad credit. You may have to pay a yearly fee to have one, and you might even have to put some money down on the card to get one, but they are available. Pay close attention to interest rates on these cards when you’re deciding which to apply to.
How Much Can You Afford To Pay?
You need to consider how much you can afford to pay each month on a credit card, even if it doesn’t have a yearly or monthly fee. If you don’t have the money on a monthly basis to pay off the amount of credit your card offers you, then you probably shouldn’t have a credit card.
The thing is if you are only making minimum payments on your card(s), and that’s all you can afford to do, then you are going to have interest fees continually growing. In fact, you might even end up paying double for the stuff you purchased with your card. That definitely isn’t a good deal at all.