Since credit cards have come into existence many people have used and abused them thinking that they were a source of free money. They never realized that they would be paying for extravagant expenses that they made in one day for the rest of their lives! This is because they forget all about interest rates and annual percentage rates that banks charge on the different amounts that are borrowed from them.


So, if you are looking to apply for a credit card, you may have to think twice about it. Credit cards are not a necessity, but they do have their advantages. The best way to view a credit card is that it is a useful tool that you can use for special purchases. Never view it as free money that you can spend on a whim. If you are considering applying for a credit card here are some good things to consider:

1. Interest and annual percentage rate – Always check the fine print and find out what the APR and interest charges on your card will be. The interest may seem low if you calculate it on an annual basis with the assumption that the whole amount will be paid within a month of purchase. However, if you pay an amount over the period of 6 months to a year, the rate will increase because they will charge it to you every month that you delay in paying the full amount.

2. Ability to pay – Look at your own income and figure out if you can afford to have a credit card to maintain. If you do not factor in your possible credit card bills, then don’t even think about making an application.

3. Your credit score – if you already have a bad history in making payments on time, you can expect it to reflect in your low credit score. This low credit score will dictate the interest rate and APR that they will charge you. This will probably be a very high rate considering your bad credit history. The better your credit score is the lower your APR will be.

4. Emergencies – A credit card can be a very nifty thing if you are faced with an emergency. Consider getting a credit card if you only plan to use it for emergencies. If you have enough self control to maintain a credit card solely for that reason, then getting a credit card may be a great tool for that purpose.

5. Self-control – Seriously look at yourself and ask if you really do have the self control to make responsible purchases and the discipline to make payments on time. If you have the slightest doubt in that self review, then it may be a good idea to avoid applying for a credit card for the time being.