Tips for Getting a Credit Card

Credit cards can be your savior during tough times, but they also can be your worse enemy if you're not careful. Some people think of credit cards as a way to keep bills paid on time when the unexpected happens, while others look at it as if it is a lottery ticket. Either way you look at it, before you apply for one you really need to understand a few things about them.

Credit cards can be life savers, but what we must understand is that the money we spend off of them must be paid back, plus interest. Most credit card companies allow you to pay a portion back of what you use through monthly payments, but they also add a percentage on to the total amount borrowed.a The more money you use, the more money you will be paying back, and using too much money at one time can cause you to incur high monthly payments that will be too overwhelming to pay.

Even worse, when you don't pay them on time, some companies continue to add a fee each day that it is late. Things happen and we can't always make payments on time, but if you pay them too late you may end up paying triple of what you actually borrowed. They may cancel your credit card until the balance is paid in full and you may get negative marks on your credit.

Applying for a credit card is not a totally bad idea, but those who do should be responsible enough to avoid abusing such privilege, because it can have a negative effect on your credit. Credit reporting can be a plus if you make your payments on time, because you could help your credit score jump a few points.