Are You Ready For a Credit Card

While growing up I used to wonder what all those cards my mother had in her wallet were. I used to pretend to have a wallet full of important looking cards and I couldn’t wait for the day when I too could walk around purchasing things using this tiny piece of colorful plastic. When I was old enough to apply a credit card I was no longer sure that I was ready to own a credit card. Why? For the simple fact that I was still in college and had no real means for paying back any balance that I was likely to incur on the credit card. Knowing whether you are ready to own a credit card involves knowing yourself and how well you are able to control your finances and spending impulses. Are you able to save your money and make cash purchases while still maintaining a substantial bank balance? Are you looking to start building your credit history? Do you have a steady means of income that can help you make monthly payments? Are you currently living beyond your means? Depending on how you answered these questions will reveal whether or not you are ready to own a credit card. In general someone should have a steady stream of income before they starting looking to own a credit card. Actually having a job is a must. Credit card companies need some kind of reassurance that you will be able to repay your debts. Being able to manage money is also imperative since it is all too easy for credit card debt to get out of control. Having the discipline to know exactly how much you can afford to put on your credit card so that you do not have a problem paying off your monthly balance is also crucial. Otherwise, instead of creating a good credit history you will rack up negative remarks that can harm your chances of securing loans for big ticket items later on in life. Overall, you will know when you are ready for a credit card – so long as you know yourself and understand that credit is a big responsibility that can be a boon as well as a bane.