The financial world often seems to be quite polarized over the subject of credit cards. While some financial professionals will tell you to avoid all cards at all costs, others will encourage you to take advantage of all the credit cards you can. Like most people, we tend to think that somewhere between those two pieces of advice there’s a healthy balance. Responsible credit card usage can be a beneficial thing. You get to build credit, enjoy rewards, and it doesn’t cost you a thing. As long as you’re avoiding credit debt, you’re good to go!
Cards You Don’t Want
However, some credit card companies don’t make it easy on you. If you aren’t careful and constantly vigilant, they’ll reel you into credit debt before you know it. After all, credit debt is where the card companies make their money! The people who pay on time every month (the kind of person you are, right?!) don’t do much for the card companies.
If you’re looking to get a new card, heed these credit cautions:
- Avoid cards with astronomically high interest rates. If you have no credit score, this will be virtually impossible to do. However, get a low-interest card as soon as possible. Even if you have full intentions of staying out of credit debt, a bill due date could slip your mind, and then you find yourself slammed with high interest charges!
- Avoid cards that have fees associated with every single little thing you might want to do. Some cards are ridiculous with the number of fees they charge. You shouldn’t have to put up with this. There are plenty of other options out there!
- Another favorite credit cautions tip: don’t settle for lame rewards. If you have any kind of decent credit score you should be able to get a card that has some perks to it. If not, move along!
- Stick to reputable card providers. It makes it easier to purchase (your card is more likely to be accepted), and the bigger card companies are more likely to be better secured.