How To Know If You’re Ready For Your First Credit Card

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Getting your first credit is something that you may hesitate about.  Perhaps you’ve heard stories about people getting themselves stuck under mountains of debt and you aren’t sure if that appeals to you.

Since you’ve never had a credit card before you may find yourself wondering what all of the terminology.  You may wonder what all of the acronyms are and what a credit card means for your financial future.  

In order to get you started to determine whether you should set out to get your first credit card here are the following questions, you should ask yourself first.

Determine Whether You Really Need It

It’s important to look at your entire financial picture and decide whether you really need it or not.  A credit card is useful for buying something which you would like to pay off in installments rather than put down the cash for in one purchase.  Many people use their credit cards for purchases such as buying a wedding ring, buying a computer, or even going on a vacation.

However, you will end up paying more for an item if you buy it with a credit card because of the interest that’s attached.  So if you have the cash to pay for something then you may want to consider buying it outright rather than with a card to avoid extra charges.

Can You Commit To Paying It Off

If you make a large purchase with your credit card, it’s important to be honest with yourself about whether you have the self-control to pay it off as soon as possible.  

The reason why so many people are in over their heads in debt is that they lack the discipline to be able to put their debts first.  

It can be easy to start looking at all of the immediate gratification that you can have when you possess a credit card.  Your debt can turn into thousands quickly and you may find that paying for your other living expenses can become a challenge as a result of this new card.

Take a Look at Interest Rates

When looking at new credit cards for yourself it’s important to look at what kind of interest rates they offer.  If you are looking at something over 20% this is considered on the higher end and may be risky to get yourself into.

However, if you find something 15% or lower this may be something appealing to you.  

Some credit cards offer an introductory rate of 0% APR which means that you won’t have any interest to pay for a certain period of time after opening the account.

As long as you pay your charges off within that set amount of time you may find that it’s a great opportunity for you.