Having a credit card eliminates the risks associated with carrying cash and eliminates the need to go to the vendor. Online shopping provides a problem free shopping experience within the confines of your own home or business.
Let’s take a look at the risks and benefits before you apply for a credit card to purchase goods and services.
0% Interest Credit Cards
Where the card holder has exceptional credit, he or she may qualify for 0 interest credit cards.
This really is a misnomer inasmuch as it really means that the cardholder will enjoy the benefit of a 0 balance transfer period. This is used to encourage the cardholder to transfer higher interest balances to the new card.
So, new cards may be interest free for a period of time, but they are far from interest free credit cards.
Risks Of Having And Using A Credit Card
Beware of the temptation to overspend. It is human nature and it does not take much to easily indulge this activity where there is a credit card available.
However, the thrill is soon gone, leaving only that sick feeling that comes when the bill arrives and the worries associated with not being able to make payments, damaging your FICO score and not being able to obtain credit in the future.
Are You Eligible To Apply For A Credit Card?
You must ensure that you have enough income before you apply for a credit card. You also have to decide on the credit limit you wish to request on the credit card application.
Will you be able to withstand temptations and resist the urge to overspend? Will you be able to make your payments on time and protect your credit score?
If you are not sure of your answers to these questions, it will be better to opt for 0 credit cards – period.
O Credit Cards Not An Option?
It is hard to maintain the lifestyle without access to credit. However, it is just as easy to find yourself drowning in debt if you don’t handle credit responsibly.
So, be honest with yourself before you apply for a credit card, and you will make the right decision before you ever sign that credit card application.
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