What you should be aware of when getting a credit card

With the digitization of money, transactions are commonly made over electronic/online banking systems, among which the “my payment savvy” seems really popular. Almost everything is paid using credit cards today; why not, when it could financially back you up even during stressful days. Credit cards might sound exciting, but they could still pose a threat if not careful. Credit card misuse has further led to financial downfalls across nations, mainly because it indulges people in spending more than they make. There are certain things you must absolutely be aware of before getting applying for a credit card.

What’s in it for you?

Credit card payments are fast, combined with incentives and various cashback offers to encourage more users. But first, you need to qualify the adjusted criteria list the bank applied and enforced before applying for an account.

• Owning a credit card is like being financially secured
• You could finally drive in your own car or get an apartment
• Pay for all your monthly expenses; in that case, check for cards with no annual fee
• To serve you during emergencies, look for the cards with the lowest fees

Other benefits include reward point collection; flaunting a good credit score will automatically make your profile highly lucrative to most credit card companies, including emerging ones.

 

What should I be aware of?

Before applying for a credit card, you must ascertain if you need one. Having a credit card could be devastating for anyone with an impulsive buying disorder, so avoid it entirely if you do.
The key is to find the right deal to offer the safest option. You must consider The following precautionary measures when picking the best credit card.

 

How much do I need to spend?

If you’re keeping up with monthly expenses, you’d know precisely the amount beforehand. Knowing the amount will be helpful during your loan repayment period on the accumulated credit.
You have to guarantee that you can repay any loan in full within a specific period.

 
Know exactly why you’ll use a credit card such as “my payment savvy” while taking complete advantage of their reward system.

 

What happens when you leave a carrot hanging in front of a mule?

Incentives or reward schemes are often used to encourage more individuals to use their credit cards; of course, this results in a greater usage rate, thus generating remarkable profits for the bank in the long run!
Rewards can be claimed simply by using a credit card more than cash; such offers also vary between issuers, so you must be aware of their incentive policies.

 
The rewards may vary from cash back and travel miles to coupons for buffets; I am sure you have been tired of having such texts on your phone daily.

You must weigh all your options before partnering up with a credit card company.

 

How much is the interest rate or APR to be paid?

While contemplating whether to procure a credit card, you must look out for interest rates. The interest rate governs the overall usage of your card, as you’ll be entitled to pay interest upon hitting a credit limit.
You need to understand some issuers charge interest or APR at a fixed rate per annum while others may consider variable rates. You must sit down with your consultant first and thoroughly discuss possible changes in interest.