Saving is the cornerstone of any strong financial budget. But, no matter how much you save, you will need credit at some point and this is what you should know about getting it.
Credit Cards — An Index to Credibility
These are the times when “plastic money” comes into the picture. This innovation of the financial world has two major forms- Debit card and Credit card. Whereas the former is just an easier way to carry bulk money from one place to another, the latter literally supports you in times of need with the money.
This feature of Credit cards makes them a rage among the youth who are always looking for ways to support their extravagant lifestyle. However, this financial adjunct can be as disastrous in its consequences if misused as it can be a respite if used wisely. ‘Credit score’ and ‘Credit report’ are the fulcrum around which the whole big credit world rotates.
So plan your credit with few precautions in mind to avoid messing up your credit history. Also your credit history most of the times goes hand in hand with your professional reputation which makes it even more necessary to keep it free of any blots. Before you jump to any offer of owning this ‘wonder’ money, make sure to have a secure job with a regular influx of salary that entitles you to a savings account in a respectable bank.
It is important to ascertain the magnitude of the need before using credit card and so refrain from going for any and every offer to own one. Also restrict the amount of credit you raise through these as sooner or later you have to not only pay back the principal amount but the interest too, constantly piling up. Nevertheless, if worse comes to worst and you have to resort to it, keep the credit limit within the payable limits and repay it at the earliest either in instalments or lump sum to avoid any over the top interests. Study the features of the different types of credit cards and the various lenders offering it before you make up your mind on one.
1. Credit cards can be your financial aid in riding over the bumps in life.
2. Do not mistake it for easy money. Do not go for more than one credit card.
3. Respect your credit limit and the deadline for repayment.