With the digitization of money, transactions are commonly made over electronic/online banking systems, among which the “my payment savvy” seems to be really popular. Almost everything is paid using credit cards today; and why not, when it could financially back you up even during really stressful days. Credit cards might sound really exciting; however, 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 to spend more than they actually 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 applied and enforced by the bank before you could apply 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 turn your profile extremely lucrative for most credit card companies, including the emerging ones.

What should I be aware of?

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

How much do I need to spend?

If you’re keeping up with monthly expenses, then you’d know exactly the amount beforehand. Knowing the amount will be useful during your loan repayment period on the accumulated credit.
You have to guarantee that you are financially capable to repay any loan in full within a specific time period.
Know exactly why you’ll be using a credit card such as “my payment savvy” for 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 into using their credit card; of course, this results in 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 instead of cash, such offers also vary between issuers so you must be clearly 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 every day.
It is important to weigh in all your options first before partnering up with a credit card company.

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

Whilst contemplating to procure a credit card or not, you must look out for interest rates. The interest rate governs the overall usage of your card as you’ll be entitled to pay interests 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 are required to sit down with your consultant first and discuss thoroughly regarding possible changes in interest.