Get a credit card - 4 things to consider

We see them everywhere. They arrive in the mail or email. They arrive by phone, placed at cash registers and gas pumps. It is credit card offers. It may be interesting to read all the tempting offers included in applications. Gifts, prizes, rewards and discounts abound when it comes to credit card applications, but before you reach out that pen to fill in the form, you should take a few minutes to consider four important issues.

Can you handle that?

In case you have not read the news or watch television, be aware that credit card debt is a very serious problem in the United States. The credit card debt can destroy your financial future and impact on your life dramatically. Therefore, it is important to ask yourself before signing. Are you strong enough to handle the temptation and responsibility that comes along the credit? If you are not sure, then start with a very low credit limit to test your self.

Is this the best deal?

Once you've made the decision to fill in the application, you should do your homework before getting up an offer. Shop around for the best terms and rates, as well as rewards. A great reward package that is never actually use is not as great, while some may sound very little, but can go up if you use it. For example, a discount on a car or a cruise can be great, but if you do not see any of those major purchases in the future, then why not choose a discount of gas or food in place. You know you're going to use.

What are your long term financial plans?

If you request a large loan like a mortgage or a vehicle in the near future, so be careful about how many new accounts opened. Check also that many of your credit can be a red flag and sometimes have too much open credit can also be detrimental to your credit rating. Of course, if you do not have much on your credit report, then you will most likely take out a credit card and use it a bit to prove that you can handle credit.

Is your credit card good enough?

Some credit cards will only accept new customers with high credit ratings. Some reward and low interest are also available to a select group with good credit. Make sure your credit is good to take credit card offer and will not suffer due to a credit check.

Credit cards can be a great tool, but like any tool they need to be used with caution and can be used for harm and good. Protect your financial future by asking these four important questions before completing the credit card application.

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