Questions to ask before applying for credit cards

The ease of use of credit cards makes them the most widely used financial product, and therefore the most requested. However, even though they are easy to use, it is not always convenient to apply for them.

Answer the following questions before applying for a credit card and avoid falling into the complexity of this product.

Do you already have credit cards?

Many people have not just one but several credit cards, because of the benefits each one offers and the advantages they can receive. Although it is not bad to have several credit cards, what is bad is to have problems paying them on time, not keeping track of your expenses or using one card to pay the other, which turns into an uncontrollable chain of expenses.

In this case, the solution is not to apply for another credit card, but rather to consolidate your debts into one under a portfolio purchase.

Having several credit cards becomes a greater temptation when it comes to spending, since you have more available credit. Do the math… there are more extra expenses, such as interest, handling fees or mandatory insurance.

What options do you have to cover your payments?

If your need is to cover an emergency, validate other options before applying for a credit card. There are online credits that offer you low amount loans without even leaving your home, these will help you stabilize your finances and cover those expenses that can’t wait.

If on the other hand, you want the credit card to buy something you are longing for, you could set up a budget and save the money needed to pay for it in cash.

Are credit cards points or rewards worth it?

Many people buy a credit card just to get some of the rewards they offer, especially at chain stores. There are credit cards where you accumulate points that you can redeem on future purchases.

The first thing you should do is compare the different cards you can access and see if the ones that offer points programs charge more interest than the ones that do not have this type of benefits. In most cases, cards that accumulate points will not be worth it.

In addition, the anxiety of trying to get points can lead you to make compulsive purchases or purchases without checking prices, so try to avoid them if you don’t want to make unnecessary expenses.

Do you already have a credit life?

Applying for a credit card may be the easiest way to start your credit life. However, keep in mind that there are other less complex ways to start it, which will also give you positive reports and will undoubtedly help you learn to manage your resources; for example quick credits, telephone plans, installment payments for cell phones and other products, internet service, among others.

So, before applying for a valid credit card if you really need it and you can assume that new debt. Keep in mind that being in arrears with a credit card also generates negative reports before credit bureaus, which in the future will generate problems when applying for other types of products.




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