To Have Or Not To Have A Credit Card

Posted by Nick Niesen on October 29th, 2010

Even students are now allowed to get their own credit cards, provided that they comply with certain requirements. Being qualified to get a credit card however doesn?t necessarily mean you?re ready for one.

Will You Be a Responsible Credit Cardholder?
Responsibility is the most important value that credit cardholders must have. Without a strong sense of responsibility, it?s easy for an individual to lose sight of what?s right and what?s wrong and be affected with the swiping disease: once you swipe, you just can?t stop.

Ask yourself the following questions to determine your suitability to have your own a credit card:

Do You Have a Steady Source of Income?
If you?re not working, are you receiving allowance from your parents? Can you say with all certainty that your allowance will be continuously given? If the money flowing into your account is irregular at best, this may not yet be the right time to get a credit card.

Are You Addicted to Shopping?
If you are, you?ll have an extremely hard time once you?ve gotten hold of your credit card. Credit cards are wonderful objects but they tend to make individuals spend more than what they can afford.

Can You Exercise Control of Your Expenses When Necessary?
It?s okay to spend the total limit of your credit card, but be sure that you?re ready and able to meet the consequences of your actions. A higher credit card balance automatically means higher monthly payments. Are you able to tighten your belt for a number of months until your finances are back to normal?

What You Need to Get Your Credit Card Application Approved

In the event that you sincerely and honestly believe you?re capable of being a responsible credit cardholder, here?s what you should do next:

Select the credit card that appeals to you best.

Prepare all the necessary documents such as photocopies of your birth certificate and other valid ID cards, your Social Security number, and proof of employment and income.

Check your credit rating. If your credit score is below average, consider joining a credit counseling program or hiring the services of a credit repair firm to improve your credit standing. Apply only when you?re back in every financial institution?s good graces, credit-wise.

How to Choose the Right Credit Card for You
Although credit cards may seem only to differ in colors and credit card limits, there?s more to choosing than a credit card than one that offers you the highest amount of money to spend for the lowest interest rate.

Student Credit Cards ? These credit cards are specifically designed to satisfy the wants and needs of students. Requirements are adjusted to students? levels and discounts, incentives, and other benefits offered are also specifically chosen to appeal most to students. Expect however to pay a higher interest rate.

Reward Based Credit Cards ? This type of credit card allows credit cardholders to accumulate points every time they use their credit cards. These points can be converted to equivalent prizes any time. Rewards offered differ depending on the type of credit card you apply for.

Low Interest Credit Cards ? Instead of offering rewards, some credit card companies simply allow their clients to enjoy comparatively low interest rates for their purchases.

Whatever credit card you end up choosing, just make sure that you spend wisely. Never forget to save for the rainy days!