Some say that getting a credit card is part of being an adult. But are they necessary to have these days?
Credit cards make cashless transactions fast and easy. If you have good spending habits, it might be advantageous for you to get one. Otherwise, stay away from it or risk getting into debt.
If having a cashless transaction is your sole purpose for getting a credit card, why not try a debit card instead? With a debit card, you only use the amount of money available on the linked bank account. You get to spend just what you have and avoid borrowing money which you have to settle later on.
Credit cards are expensive that you can even compare them to a licensed moneylender personal loan in (Smart Loan – The Premier Loan Directory). Still, credit cards offer some great advantages if you know how to handle them properly.
Taking advantage of a credit card
Before you get a credit card, take a good look at your lifestyle and ask yourself whether you’re spending your money wisely or not.
Start looking at your regular expenditures and self-control in spending. If you know your limits, find a credit card that fits your lifestyle so you can maximize the offered benefits without putting yourself into deeper debt.
If you love food, look for credit cards that have tie-ups with some restaurants. Some credit cards offer twice the reward points for dining in select establishments, while some offer 1-for-1 deals. If shopping is your thing, look for a card that has excellent cashback options.
For frequent flyers, some cards offer discounts on flight bookings and hotel accommodations. As you use your card more to purchase tickets, you collect more flyer miles which you can redeem later on for possibly free flight tickets.
It doesn’t matter whether you prefer rebates, discounts, freebies, or reward points. The important thing is to select a card that would get you the most out of it based on your spending habits.
A strong reminder to everyone: avoid credit cards altogether if you don’t have good spending habits. Missing a repayment date might not look like much until you notice your debts piling up one after another. A debit card might be a better choice as long as you don’t spend all of it in one go. Whichever your choice is, always remember to be responsible in handling your hard-earned money.