Choose your credit cards smartly

Choosing credit cards is where people get it wrong!

11:24 25 November 2014

Your credit card can prove to be a very important asset in times of needs, but still it can be very hazardous if misused. It does not matter whether you have the best credit card provider, it will not still help if you abuse your card by spending beyond your limit. Some people try to avoid having credit cards and opt for debit cards, which is recommendable. However if you know you are responsible financially it is very important to own a credit card since it is convenient and very efficient. You will come to realise that when you use your credit card you save about 1% on your utilities, which might accumulate to a handsome amount that can purchase something else. 

 

However, as you plan to acquire a credit card, always make sure you dig deep, do some groundwork, and compare all cards that the provider offers. Keep an eye out for the maximum borrowing rate offered to you. Similarly, always ensure that you get a card that will suit your expenditure. If you are reluctant in paying off debts, you should think about a credit card with low borrowing limits to avoid yourself getting into debt disasters. You should also pay much attention to the Schumer box, which with its legible layout provides information such as rates, fees and other T&C’s.

 

Ensure that the card you are looking forward to apply for offers reasonable penalties anytime you fail to repay your debt. Make sure that it offers you low rates on other types of loans and one that has no annual fees too. Some cards will offer a sign up bonus but this should not be the reason to choose that card. Try to look further into the card’s limitations as well and also risks. Since you are starting a long-term relationship with your card provider, you have to consider a card that will not bring you any problems later. Go for a credit card that you can live with.