Having a credit card means being responsible and being disciplined in managing and maintaining your responsibility for debt. Although your credit card will not contain any outstanding balance unless you charge anything on it, the fact that you have the ability to charge anything at any time requires discipline.
Once you have decided that a credit card is what you would need and what you would want, you will need to address a few questions that you can ask yourself to help you manage holding on to one.
Here are a few questions you may want to reflect on:
- Do I have enough income or savings to cover the total credit line?
Having a credit card means you can borrow money at any given time. With the technology rising, you can use your card through a computer or mobile phone. Make purchases at midnight and charge meals even when dawn is about to break. If you do not monitor your card properly, most likely you will be charging and reaching your maximum limit on your credit. In these cases, you need to make sure that you have enough savings to cover this. Being unable to pay a huge amount of debt will only bring more debt.
- Do I need more than one credit card?
If this is your second card or if you have been approved to more than one card, you need to ask yourself the need for the second one. If you can’t find a reason for the second card, avoid getting it. It will just be an additional part of your debt that you would need to pay. Getting a second card can be an additional obligation than being an advantage.
- Am I liquid enough to pay the total amount due every month?
Pay your outstanding balance in full. This is something that needs to be advised repeatedly. Avoid rolling over your credit as it only entails additional interest rates. You need to ensure that you can pay off your obligations and maintain debt free as much as possible.