Things to Consider before Getting a Credit Card

Do not think that when you have a credit card your lifestyle will change for the better or you can spend freely. In fact, when you don’t manage your credit card with care you will end up as a bankrupt 

Consider the following before acquiring a credit card:


1. For convenience and not for credit: Don’t think that you can increase your spending power by just paying the minimum amount and roll the balance to the following month and continue to spend in this way. A credit card is for convenience and not to obtain credit or to incur debt. The outstanding amount has to be settled fully and promptly when you receive the monthly statements

2. Take advantage of credit card benefits: You can take advantage of your credit card to reduce your normal expenses such as petrol and other grocery items. For certain cards, you are given rebates for the purchase of these items.

3. Simplify your life: You can arrange with the card issuer to pay for all your utility bills and insurance premium. Life is easier when you don’t have to issue too many cheques and go to too many places to settle your monthly bills and commitments

4. Self-discipline: Are you able to control your spending according to your budget?
Are you not an impulsive spender? You can keep a credit card if you follow closely your monthly spending pattern with or without a card.

5. Track your spending: You can use your credit card as a tracking tool to monitor your spending. Review the monthly statements to trim unnecessary expenses.


When used correctly, a credit card is an asset and not a liability.