Getting a credit card is one of those things that I typically never suggest to anyone, because it usually leads down a very bad path. However, I can understand if you want to have a credit card, because you never know when an emergency could arise. If you’re thinking about getting a credit card, I’m going to outline some things that you should know about them.
#1. Check Out Credit Card Comparison Websites
It can be tough to find the credit card that is right for you, because there are so many options out there to choose from. Therefore, I would highly suggest that you take advantage of one of the many credit card comparison websites out there, so it can make choosing the perfect card much easier for you. For instance, Credit Karma, the site that allow you to check your credit report anytime you want, has an excellent credit card comparison tool. You can find the card that will suit your needs and also help you save the most money. For instance, if you have credit card debt right now, Credit Karma will help you find a card that you can transfer your balance to, which could save you hundreds, if not thousands of dollars.
#2. Take Note of the Protection You Get with Your Credit Card
Different credit cards carry different protection programs. For instance, there are some credit cards that will protect against fraudulent charges, theft, non-delivery and some will even enable you to receive extended warranties on items. It’s important that you know what type of protection you have. I’ve actually had people get hold of my accounts before and make fraudulent charges. Lucky for me, I was protected and the money was replaced.
#3. Ignore the Gifts
A lot of credit card companies out there will offer people some sort of gifts or special 0% APR for a short term. These things are usually perks that will entice you to sign up for a credit card. Remember, you don’t want short term benefits if it’s going to cost you more in the long haul.
#4. Beware of Rewards Cards
Rewards cards are excellent choices, but only if you plan to use a credit card responsibly. What I mean is that you should never carry a balance. When you make purchases, you should make sure to pay off your balance every single month. That way, you take advantage of the rewards and you’re not going to have to pay any interest fees. The reason I say you shouldn’t carry any debt with a rewards credit card is because rewards credit cards typically have higher interest rates.
#5. Negotiate
Credit card companies are typically willing to negotiate with you. Therefore, if you’re ever late on a payment, you can usually talk with them and they’ll wave the late payment fee and they won’t even put a mark on your credit report. Also, you can usually negotiate with them to lower your interest rates or monthly payment. Therefore, never be afraid to negotiate.