subject: Should You Own A Credit Card? [print this page] Author: Karl Edwards Author: Karl Edwards
Are you the kind of person who should owna credit card? This may seem like an insulting question, initially, but as individuals, there are things that we are good at and things that we arenot so goodat.To paraphrase Mark Twain, "We are all ignorant,just about different things". Quite often, however, we fail to recognizesome qualities incertain aspects of our personalities. There are a few questions that you can ask yourself though,which will help determine your suitability as a credit card owner.
Is shopping a form of entertainment for you?
Do you buy things that you do not need?
Do the words "on sale", or "reduced price"excite you?
Do you think thatthe credit card limit is actually yours to spend? If the answer is yes to allbut especially the last, then maybe you are a danger to yourself and possibly your family if youare walking about withalive credit card. It is hardto believe that some people literallythink that if they have available funds on their credit card, that they also have the right and financial ability to purchase whatever they please, but unfortunately this is a reality with the younger generation.The truth is this... The ability to repay should be the main indicating factor in whether or not a purchase can be made. Some believe that it makes sense to buy things today that they can earn the money for tomorrow and some even have paid one credit card debt withanother credit card, simply because they can.
This behaviourmay not necessarilybe down to a lack of will power or a negative character flaw, just a reaction to the times we live in. In this day and age of materialism and pseudo wealth, ittakes a certain amount ofrestraint and an understanding of how the world workstosayno to the trend ofconstantly purchasing, and if you think the temptation is too much for you thenyou are probably better off without a credit card.
While, owning and maintaining a credit cardis a good way to establish a good creditreport for when you need it, there are other ways to establish and build credit. Home equity loans, and personal lines of credit are a great example of one way to do this. This will obviously allowyou to use the equity inyour home to obtain credit. It is however important to use this credit wisely also, althoughaccessibility to these funds ismore restricted than a credit card and you also have a visible monitor of decreasing funds and rising mortgage interest payments to deter you. Statistics show that the amount of credit card debt that is owed cannot, and will not ever be paid. The idealattitude to adopt is that nothing should ever be purchased which cannot be paid for today. The realtrick is to buy what you can afford, by using a credit card, and then pay it off, in order to establish credit and keep your sanity and possibility your dignity. If you can not afford to do this, you should never own or use a credit card. People who purchase whatever they want, regardless of whether or not they can pay for it, should ask themselves, "Is a credit card for me"? The answer isabsolutely not and if they find they are unable to control spending theymight consider switching toa pre-paid card.About the Author:
http://creditwise.1stchk.com provides resources, articles and advice for people seeking financial assistance and information on credit and debt. Also provides opportunities on low apr credit cards, balance transfers, pre-paid credit cards, credit repair programs and debt consolidation.
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