You must be one of them who are crazy devotee with the idea of using credit cards instead of money while buying anything! There are many people who can’t even think about their life without their plastics. But, don’t forget that, these plastics can easily leave a long list of credit card bills if you use carelessly.
Remember, having credit card debts can lower your score. Fixing credit score is not that easy. So, you need to organize your finances in best possible way first. Moreover, in case you incur credit card debts you need to pay off the outstanding bills which is very hazardous. There are many professional organization available to provide you debt solutions. Remember, they charge a big amount to solve your financial issues.
4 Things a new borrower must consider
If you can be careful before choosing your new credit card, you can avoid such problems as well. Here are some useful guidelines that you should know before opting a card.
1. Be sure about the credit limit
Try to evaluate the exact credit limit that may be sufficient for you. You’re the one who knows better how impulsive shopper you’re. Your credit limit will depend on your personal credit history. It can be any digit ranging from hundred dollars. Try not to create the situation when you’re close to your credit limit as you may pay higher fees when you over-exceed. Asses your credit limit beforehand to become a creditworthy borrower.
2. Be sure about the interest rate of your credit card
While you take out a credit card, you should check the interest rate that appears as the APR or the annual percentage rate. This can either be a variable rate card or a fixed rate card. If you take a fixed rate card, you can be sure about the monthly debt payments but with a variable rate card, the rates may fluctuate with time.
3. Analyse your spending obsession
If you’re a regular shopper and impulsive shopper, you should think twice before getting your credit card. If you love to shop and quite wealthy, then you need to pay attention to the credit limit, and the fees that they may charge you if you cross the credit limit. If you’re the one who pays their balance in full every month, then you need to work on the interest rates. You need to negotiate with the issuer in order to get lower interest rates.
4. Stay away from the late fees and penalties
The credit card issuer have many tricks to suck money from you. One of the most common charges are cash advances, transactions and over the limit charges for exceeding the credit limit. You need to negotiate or bargain with the lender in order to get a credit card with reasonable charges. The late fee penalties should also be taken into consideration by the credit card borrower.
Conclusion
Lastly if you’ve decided to shop a new credit card, then you should take into account the above mentioned factors so that you don’t incur high interest debt in future. You need to investigate the reputation of the credit card companies so that you don’t become a victim of scams as well.