Contrary to popular perception, credit cards do not have drawbacks with them.
Credit cards are for our convenience. They are great financial tools which, if
used correctly promise a good financial future. What should one do so that the
experience of owning a credit card remains good and prosperous? If this question
is nagging you, then read on. This articles takes a look at 5 vital steps to
make sure this happens.
1. Can't you do without that credit card?
Yes, however awkward it may seem but, this is the first question that
everyone should ask himself before going for another credit card. Too many
Americans are having more than one card already. Adding one will only increase
the burden, if not used wisely. So, unless absolutely essential don't go for a
new credit card.
2. Your credit score
Every credit rating agency is obliged to give a free annual credit report if
asked to do so. By all means do it, keeping a track of your credit score will
help you gauge what the credit card companies are willing to give you. A good
credit score can get you a Gold card, while excellent can help you get that
Platinum credit card. If the credit scores are not good, there is no use
applying for highly rated credit cards. It will save you a lot of time, money
and prevent embarrassments due to rejection if you apply for the 'right' credit
3. Shop around
There are lots of credit card companies out there, and so are the number of
credit cards. At any given point of time there can be many offers, with
different features that can suit a person with a particular credit score. So, to
save time, money, and get the right credit card, it is better to compare various
credit card offers. This can be easily accomplished at various credit card
comparison websites. Comparing offers side by side will give you a correct
picture of what the credit card company is offering you.
4. Apply online
There are many benefits of applying online which save a lot of time, money
and effort. Limited or no paperwork, instant decision, no running to banks, and
doing it all from the comfort of your home definitely matters. It pays to take
the advantage of technology.
5. Repay regularly
Once you have that credit card, don't simply go out and squander your money
like hell. Remember, credit card money is a loan and it has to be repaid with
interest. The better you are on the repayment front the better it will be for
your credit report and credit score. Else, spending your life with credit card
debt is the only option.
One mistake that most people make that often costs them dearly is not reading
the credit card terms and conditions carefully. Make sure that you read every
fine print while applying for the credit card. If there are doubts, just get
them cleared before proceeding. Don't assume anything. Getting the facts
straight will always help your cause, and won't create any uncomfortable
situation later on. The simple steps mentioned above will ensure that your
credit card experience remains a good one.