A Small Story About Credit Card – Short and Simple
I have a job now should I get a credit card?
The question popped in my head six years back, when I started my first job. Now, I got suggestions, warnings, and encouragement. But what I was looking for then was a piece of honest advice. I missed one then. Now that I think about it, I am kind of happy.
Today I want to share my credit card story and hope that it might help someone who is facing the dilemma I faced back then. I will keep it A Small Story About Credit Card – Short and Simple
When to look for a credit card?
Even though the idea of getting a credit card is tempting given all the possible promotional activities going around in this field. You should always let your money grow for a steady amount of time, now that will happen when you work for about a year or so. This will make it applicable to choose from the best available credit cards in the market. Also, you will not hit debt straight away. Since you have money saved to pay for your credit card bills.
Read About – Top 7 Benefits of Opening Zero Balance Account Online
Know your requirement
This is a vital thing to consider before buying a credit card. Thankfully in today’s market, there are various options to choose from, when we talk credit cards.
Some of the most common credit card variants available:
- Reward credit card – you avail reward points on every purchase
- Fuel credit cards – your fuel recharges through these cards will win you cashback or credit points
- Co-branded credit card – when a card is partnered with a certain brand, shopping from that brand with these cards will be extra rewarding
- Cashback credit card – as the name suggests you get various cashback offers on using a cashback credit card
Also Read: Online Shopping For Women – What & Why Do Today’s Women Prefer Buying Online?
Advantages of having a credit card:
A credit card comes with a predetermined credit limit based on the bank’s assessment of your creditworthiness. Remember: Credit cards usually have a high-interest rate when compared with other loans.
Cashback benefits – In recent years the number of reward programs has skyrocketed, with banks offering discounts on every possible purchase.
Building a credit score – if you can build and maintain a steady credit score, your chances to avail of a car/home loan in the future becomes easy. Your credit history has a direct relationship with your credit score. The longer you hold onto an account, the better it’ll be for your score.
Substantial purchase power – with a new job in hand, we tend to fulfill our dreams lurking in our heads for a long time. A credit card can come to the rescue.
Convert to EMI (Equated Monthly Instalment) – you can convert your cc bills into monthly easy instalment payments as per the bank’s internal guidelines.
Credit card risk factor:
Things to remember –
- Only responsible usage of your cc will help you to improve your credit score
- Two main factors to define your credit score are payment history and the borrowed amount
Always consider your purchase power keeping aside the credit card and ask yourself, how long will it take me to pay back. If you are satisfied with the answer, then tally it with the facilities you are getting from your card.
Use your card responsibly, try not to miss a repayment date, this will impact your credit score adversely in the long run.
Finally
Ask yourself what credit cards should I get? Do some online research then decide to opt for a card. Use your card regularly and responsibly.