Will A Credit Card Do Me Any Good?

Will A Credit Card Do Me Any Good?

Will A Credit Card Do Me Any Good?

Nowadays people swipe their card to pay for items. I am talking of course about credit cards. Everywhere you go you will find that almost everyone uses some type of card, be it debit or credit to complete financial transactions. Almost any business accepts them and you don't need to carry any change. If you are on the go and don't have cash, having a credit card makes life so much more convenient. Keep in mind that there are positive and damaging aspects of owning a credit card and how you use it.

With each charge to the credit card the funds are coming from the credit card company which keeps a record of how much you spend on that card. There is a spending limit on every credit card when it is issued. You can increase this limit if you make a request to the credit card company as well. At the end of 30 days the credit card company will total your balance and you will be required to pay a percentage of that amount with interest. The credit card company will require a minimum payment each month but you are able to make a full payment anytime you wish. Any amount left over that was not paid in full will be carried over and they will apply your APR (Annual Percentage Rate) to that amount over that period of time. The interest rate set for each credit card will vary for each person. Before credit card companies approve the card they will look at one's credit score, employment, income, ability to make payments, etc. There are times when credit card companies are releasing a new credit card along with a very good interest rate as a promotion.

With that said, having a credit card is one of the most convenient financial tools that come in handy all the time. When you need a small financial cushion credit cards can really help. If you are accident prone and you happen to find yourself in a situation where you have no cash on hand a credit card is always a lifesaver. You can withdraw cash from an ATM and most stores anywhere accept all kinds of credit cards.

With the almost necessity and usefulness of credit cards there are still precautions that one must take when using them. It may not seem like it but there are negative aspects to owning a credit card. Some people, with the convenience of having a credit card, will continue to swipe again and again. Not realizing how quickly those purchase amounts add up. Before the know it they have already maxed out their credit line on the card. With the high balance your interest payments could be quite hefty. By making the minimum required payment every time it could take years to pay off the entire amount if you don't spend any more.

Check Credit Card APR (look for 0 Credit Card APR)

Avoid the downward spiral of having high credit card debt. You can try not to spend too much on your credit cards and always try to get a credit card with a low interest rate. Your APR (interest rate) will vary depending on your inputted information on the application which will also be verified through your credit history. One of these most important factors is ultimately your credit history. If your credit record has several late payments they will not even issue you a credit card or set the highest interest rate if you were to receive one. Often time's companies are more likely to give you a lower interest rate if you have maintained a good credit history. Another tip to find the lowest interest rates is to shop around and compare prices. Low APR credit card rates are presented to you on these sites for you to go over in detail. Before choosing a credit card to apply for you also can check your credit report and score at the credit card comparison sites as well.

Having a credit card really frees up a lot of hassle and makes life so convenient but make sure to only use your credit card when necessary and not swipe on impulse. It can be high risk if you don't watch how often you are using your credit card. Responsibility is key. Remember to think things through before making a large purchase with your credit card. Plan accordingly and be financially responsible and getting a credit card may be the best thing to ever happen to you.

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