Around this time of year in particular, credit cards can become suddenly very popular as a means of making those frequent and large purchases. If you are thinking about getting yourself a credit card, whether for the first or the fifth time, you will want to make sure that it is genuinely the right move for you to make. It is not something you should do lightly, as even at the best of time it is still going to be something that can quickly get you in debt. Regardless, you should be able to make the most of it and keep yourself safe so long as you are asking yourself the right questions first – and that is what we are going to look at today. In this post, we will go through three questions which you might want to ask yourself before applying for a credit card, to make sure that you are doing the right thing.
Can You Afford It?
You will need first to determine whether you are going to be able to pay back your credit card month after month, as if you can’t then it is not an option which you should pursue. If you are struggling to know whether or not this is the case, that probably means that you are not budgeting yourself strongly enough, and you might want to take a closer look at your finances to see whether you can make this work. If you can, then you will be able to get a credit card – but think carefully about the limit, and start it off small at first. Most providers will let you raise it later on, should you need to, so the safest bet is to start with a low credit limit and increase it later if necessary.
Is It Secure?
Not all credit cards are made alike, and you will want to look deeply into the question of whether or not a particular provider has a reputation for being secure. This is hugely important, as the last thing you need is to end up with debt because someone else has had a shopping spree at your expense. If you look deeply into the institution offering the card, you should be able to determine whether or not it is likely to be a secure option. You might also be able to give yourself an extra layer of protection by using something like Lifelock. This is a service which can help to protect you against credit card fraud, and it might be a good idea – but first look into the question of is Lifelock worth it and whether it is a likely option for you personally.
What’s My Borrowing Plan?
One of the worst things you can do when borrowing money is to do so without really thinking about it at all, and yet the vast majority of borrowers do precisely that. This is likely to land you in trouble, so what you want to do instead is to consider what kind of borrowing plan you might want to follow. That means knowing how much you are going to borrow, and when you are likely to be able to repay it in full.