Credit Cards - Why Credit Cards Are Your Friends

Many people balk at having credit cards because they think that by owning one, they would immediately spiral into the depths of bankruptcy. Admittedly, this may happen – but only if you are unable to control your urge to have retail therapy at every instant; and if you do not know how to take advantage of the various value-added yet cost-efficient promotions credit card companies offer their members. If you know how to handle a credit card, you may be surprised to find out that they, just like your friends, can actually make your life easier. Don’t look at your cards as potential menaces because, if used wisely, these cards can be your best (financial) friend.

Choosing Your Friends
When you make friends, you do not try to befriend the prettiest or most popular person around, do you? You normally look for someone who has similar interests as you and one who will value and take care of you (as you would do them). The same principle applies when choosing a credit card. If you are planning to apply for one, don’t get the most popular brand or the one all your friends use, select one which best matches your personality and your lifestyle. There are several brands available in the market and the best way to choose which is best for you is to evaluate what each card has to offer. It would be to your advantage if you placed cards that offer low APR and waived membership fees (upon approval of your application) on your shortlist. Once you’ve narrowed down your choices, go through the fine print and find out which of these cards can give you valuable extras which you can use and make the most of.

Credit card extras come in different forms. There are cards that have tie-ups with retail establishments and, for every dollar spent on these places, you can get a freebie, are entitled to special discounts, be given a rebate or accumulate points (or mileage) which you can redeem at a later date. Select the card which provides services that you can actually use (what’s the point in getting mileage points when you hardly even travel?). This way, paying your credit card bill would not be so much of a burden.

How Your Friends Help
When we are having financial difficulties, don’t we normally run to friends for help and don’t they deliver? The same goes with credit cards! If you think this is hogwash, consider this: Imagine yourself being weighed down by having to shoulder high interest rates on your other credit cards. You don’t want to be burdened by this anymore so what do you do? Instead of pawning all your valuables and asking “alms” from your friends, why not consolidate all your bills and transfer these to a low-interest (or no interest) credit card. All your bills will be settled immediately and you can close off those cards and forget all about them. The amount that you have transferred will still have to be paid but you will have a better payment schedule. Now, isn’t that great?

It’s Okay to Have More Than 1 Credit Card
You can have more than 1 credit card and still not fall into debt: you just your outstanding balance onto another card, it would be better if you set that card aside and not use it to make any other purchases. You’d be better off using another card (one with a smaller credit limit, or one that has pre-paid credit) for your day to day necessary purchases.

Maintaining Your Friendship
When you have found the right people to be friends with, don’t you work hard to maintain that wonderful relationship? The same is true when it comes to your friendship with your credit card. Maintaining a relationship with a credit card is really not at all difficult. All you need to do is use your card wisely and, to avoid falling into debt, spend only what you can afford to pay, and to pay the card in full at each due date. If you are able to abide by these simple rules, you are sure to have a lasting and fruitful financial relationship with your card.

Where to Find Them
If you don’t have time to collect information materials from banks and would rather review card offers and apply on line, you can do so. There are several websites designed specifically for those who are on a card-hunt. Just like online personal ads, these websites summarize all the benefits you will get from a specific card and usually, at the bottom of each, there are buttons you can click on when you want to make the connection.