Many people already have credit cards but there are some people that do not and may wonder whether they should take one out or not. This is because they may have concerns about the card. It is well worth addressing these concerns so that they can then make a decision as to whether the card will be worthwhile.
- In is insecure – some people worry that their credit card could be stolen and they could then lose money. This is not an unreasonable concern as it does happen. People do steal cards or card numbers and use them to buy things. However, these is also this risk with a debit card as well. Credit card companies also have departments that deal with this. As soon as you report your card as stolen or notice transactions on there which you have not made, they will start investigating and they will repay any money to you that has been stolen.
- It is expensive – there is an expense associated with all borrowing. This includes credit cards. However, there is a way of using a credit card and not paying for it. This is that you can use the credit card and then repay it in full when you get a bill. If you repay it all by the date they give you, then you will not have to pay anything in interest but you will have borrowed money for a short period of time. If you choose just to repay the minimum amount or any amount less than the full balance, then you will be charge. This charge will vary depending on the lender and the amount that you have borrowed.
- It can lead to debt – it is of course possible that using a credit card will lead to you getting in debt. If you spend all of your credit limit and then only repay the minimum amount you will owe money. This might be useful to you in a way, if you need to buy something and would not otherwise be able to afford it. However, you will have to pay interest on the money that you owe. If you are aware of how much this is and have decided that you are happy with paying that interest then that is fine, but otherwise you will need to try not to let it lead to debt. This is easier for some people than others. You can set up a direct debit to repay the credit card in full each month and then you will never owe money and you will be safe. However, some people will not do this and might see the credit on the card as money that they can spend and that they can treat themselves to things and this could lead to problems with debt. So, think about which attitude you are likely to have before you take out the card.
It is also worth thinking about the advantages of having a credit card. You can buy things now and you will not have to pay for them until you get your bill. The bill may come after you are paid so it could mean that you can get a few things that you would not normally be able to afford. It is also good to think about the fact that credit cards offer some insurance. If you buy an item online and it does not turn up or it not fit for purpose and you have no luck getting a refund, then the card issuer will refund the money to your credit card and pursue the claim themselves.