Credit Card Basics
A credit card is a thing to behold. When you don`t have one and aspire to become part of the crowd that swipes, there are things you need to know. Firstly and most importantly, the credit card is only for those with the discipline to manage it. This means that when you buy something on credit, the item is not yet paid for. It will appear on your statement at the end of the month and then payment should be made, preferably in full but at the very least, the minimum amount.
If you chose to pay the minimum amount only, you will pay interest on the balance and that is not exactly how you should be allocating your hard-earned cash. Many credit cards have annual fees. Remember that fact when you decide to apply for one. If you were not really going to use your card it would not make sense to pay the fees.
When you apply for a credit card, the most important thing that you must have is a good credit rating. Poor credit score = no credit card. So, take care of your finances and manage them carefully.
You must also be over the age of 18 before you will be considered for a card. The credit card issuers also require a certain minimum income amount before you will qualify for a card.
Once you have your card it will be necessary to handle it with care. If you lose your card or it gets stolen, charges can pile up and you will be responsible for it. As an alternative you can take out card protection insurance, albeit at a small fee.
Do not under any circumstances allow other people to use your card. This is one card that you want to control yourself. So, keep the card to yourself and do not make the number known to your friends, not even in an emergency or on a rare and special occasion.
Student credit cards are available for those of you who are still studying. Go online and read up about the benefits and costs involved. Many cards offer cash back or rewards when you shop at selected retailers. These awards can be redeemed the next time you shop or you can keep the rewards to use for a bigger purchase sometime in the future.
Even if it is a drag, it makes sense to read the fine print. Consultants or online sites tell you the essence of what you need to know but it will be to your advantage if you start to read all documents pertaining to financial matters carefully. Ask questions – you have a right to know.
The world economy is in dire straits at the moment and every one of us is watching our finances. Take care to make the right choice with regard to your first credit card and make sure to protect it as well as your credit.
Even if you are considering going to the institution where your other account(s) are held and asking them for a credit card, you should also look at what else is available, such as the Virgin credit card.
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