First of all, you have to know for what purpose you intend to use the credit card for. Credit card use is not limited to just getting money when you fall short or purchasing basic needs such as food or medicine when you have no cash for them. It still works by allowing you to use an amount of money at a pre-set limit but due to competition and the proliferation of bad credit, more and more credit card companies have found other useful ways of encouraging good creditors and assisting people who do not. Balance transfer from an existing card with high interest to a card with lower interest is an example. Just be careful and try to keep from layering credit upon credit.
Credit card use is still need based. The difference perhaps is what one person considers as a need in their particular lifestyle. So before you apply for a credit card, take time to consider what your lifestyle is because that is where you need to base your application. For example, if you are constantly travelling, a credit card that offers rewards or frequent flier miles will be ideal. If you’ve got a small business you can use the credit card as a tool that will help set a limit to company expenses. With rebates, cash back and low interest for people or institutions with good credit rating, you may even find yourself saving some money or get added perks with continued use and up to date payments.
You need to know the numbers involved in using a credit card whether it is your first time or not. Familiarize yourself with annual fees, membership fees, APRs, penalties and the like. These thing need to be taken into account so that you will have a clear idea of what you are paying for when your bill comes. Otherwise, you’ll get quite a shock when you look at your bill and find yourself paying more for what you charged. Being responsible for what you spend on and how you spend are still very important. Unfortunately, a large number of credit card holders are not that mature and get caught up in the credit trap. In recession hit countries, the lure of the credit card is even more appealing but the credit card holder will run the risk of getting deeper into debt if he or she is not careful.
Whether you are a student or employed, a businessman or a pensioner, having a credit card can be very useful especially if you arm yourself with the necessary information before you set to go and get out your first one, a new one or another one. What ultimately matters is that you use the information you gather to place yourself in the best position to enable you to pay off your debt before you apply for a credit card.