Is it a Good Idea to have a Credit Card?

A credit card is something that some people just take for granted and always have. However, there are others that are rather more cautious and perhaps do not have one because they are worried about them. There are different possible reasons why people might have concerns. It is worth addressing some of those so that people can think in more detail about whether they feel that their concerns are warranted or not.

Not being able to repay

There are many people that get worried about repaying loans such as credit cards. This is understandable but there are things that you can do to make sure that it is easier to do it. Firstly, always set up a direct debit so that the whole of the credit card is repaid when the bill comes. If you do this then you will not get charged anything and you will know that there is no outstanding debt. You will still get up to six weeks of interest free credit on the card, but by paying it all off on time, you will not pay anything for that. However, you will of course need to make sure that you have not spent too much on the card. If you have spent lots then you could find that it will be too expensive for you to repay it all or you will not have enough money left to pay for everything else you need to buy if the amount is too high. This means that it is important to monitor what you are spending. Most cards will allow you to check the balance online so you will be able to do that to check how much money you owe. If you do not have online access or do not like the idea of banking on line because of security fears then you could just note down what you are spending on the card. Then you will still be able to check that it will be affordable.

Spending too much

Some people worry that because they have a card with credit on it, it could mean that they will just use it to buy lots of things and spend too much. This could happen as well. Some people will think that the money is theirs to spend and that they will go out and treat themselves and then they will have to find the money to repay it. With a credit card, you will have the option of repaying in small instalments and this can make the loan much more manageable. However, interest will be charged and this can mean that the loan will end up being really expensive. If you think that you are this type of person and that it is likely that you will overspend on the card, then you have two choices. You could ask for a really low credit limit so that you can only spend an amount that you can afford to repay or you could go without a card entirely. You will need to think about which you think might work the best for you.

Security issues

Some people worry about the fact that their credit card or credit card number could be stolen and that they will then have money taken form them. This is something that does happen but credit card issuers are aware of it. They will all have fraud departments which will deal with problems like this and the chances are that any fraudulent activity will be sorted out and you will not have to pay for items that have been purchased after the card was stolen. They even monitor activity and if they see anything strange they will block purchase son the card to protect you. You can protect yourself as well. Make sure that you do not leave your card behind in a payment machine or carelessly lose it. If you fear that your details have been stolen then report it right away so that the card can be cancelled to prevent any further spending taking place on it and the issuer will set about refunding your account with any purchases that you did not make.

So, whether a credit card is a good idea for you is a very personal issue. You will need to think about whether you think that it will be useful to you. Consider the benefits of having a card and then decide whether you think that those outweigh the negatives. Some people find their cards extremely useful and never pay anything towards them but others are constantly owing money and pay high interest charges so you will need to decide what type of person you are likely to be and therefore whether the card will suit you. Be honest with yourself and then you can be confident that you are making the best choice.

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