Having a credit card in your wallet gives you the power to make purchases, pay bills, and other transactions. Some people fall into deep trouble for not using their card responsibly, but there are others who reap more benefits than using cash.
The truth is, credit cards are helpful in making transactions secure and convenient. Simply hand the card, swipe, and get it done. Some cards also have a rewards system, making every transaction a rewarding experience.
The question is, what are bad reasons for getting a credit card? In this article, we’re going to discover the impractical reasons for opening a credit card account. We’re also touching on the best reasons to get one. Read on to learn more.
If You’ve Maxed Out Another Card
This is pretty common among some consumers, that’s why they accumulate credit card debts over time. While there’s nothing wrong with getting a new card for access to credit, you don’t want to be in deep waters trying to pay all your debts.
Maxing out another card is okay, but if interest piles up and you can’t even wipe out balances each month, you’re only adding more bumps into your credit history. Settle what you owe first, start anew, and see if you really need a new credit card.
Plus, you can always request a higher credit limit in case the existing amount isn’t enough. If you have a good credit standing, the issuing bank can grant the request. If not, then you need to get it together and wipe out card debt before opening a new one.
If You Have Recieved an Offered
A lot of people open a credit card just because they’re offered by a bank representative. Analyze whether you need a card or not, then see if the annual fee’s worth it.
Some cards with good rewards program charge an annual fee, and you don’t want that to add to your expenses if you don’t need the reward.
The key here is to distinguish whether opening a credit card account is necessary and if you can maximize the card’s perks and features. If you’re simply getting a card just because someone offered you, it’s a bad reason.
What could turn things around is to study the card’s features and see if it can help you at some point. If the answer is yes, then you can apply for a credit card.
If You Are Trying to Get Through a Financial Problem
Credit cards don’t provide free money. It haunts your credit history and eventually ruins your profile if you don’t handle it properly. Remember, whatever you use the card for, you must pay it off. Because credit from cards is considered debt.
If you need access to money, try other bank products like loans. It’s more practical to borrow using a loan than a credit card.
Good Reasons to Get a Credit Card
While there are bad reasons to get a card, there’s also a bright side to applying for one. Having a credit card lets you build your credit history over time.
If you’re responsible and you pay what you owe in time, it shows up in your history. Therefore, apply for a card and use it responsibly. Countless legitimate perks are accessible when you have a credit card.
For instance, if you’re a frequent flyer, some travel credit cards allow seat upgrades and many other perks. Meanwhile, you can also get a cashback for every minimum purchase.
Credit cards aren’t free access to money because you need to pay for the balances each month. Therefore, it’s crucial to be a responsible cardholder and get a credit card only if you can afford it. Otherwise, you’re only creating more dents to your credit history.