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Credit card matters

By admin
16 November 2013

Should a credit card be used in emergencies only?

A credit card can be put away and used for emergencies, but remember you still have to pay the annual card fee. Therefore, it can become an expensive way to cater for emergencies.

How do you work out if a credit card will be suitable for you?

You must decide what you need a credit card for. If it is convenient, then yes, a credit card is definitely for you. If it is for short-term loans, it is the easiest way to get access to credit, and you must shop around for the best rate.

However, a credit card is not suitable if you are not disciplined, do not know how to handle your finances and you are a bad payer. A credit card can give you the false impression that you have money when in fact you don’t. You must still pay back the money. Many people get into credit-card debt, which takes years to pay off, if they use it incorrectly.