Before you get another credit card….

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A few things to consider before you get another credit card…. As a partner with a credit card comparison site, we know that users love to compare credit cards to see the different credit card rewards, credit card travel miles, credit card perks, credit card fees, and credit card rates, before applying for a new credit card. With that said, we like to challenge our users to consider whether or not they need a new credit card at all. Now, if everything is on track and you can pay your credit card bill every single month without incurring any credit card interest, you may find that the credit card travel miles, credit card regards, and credit card perks may be beneficial in some cases.

However, Trouble arises when your employment or financial situation is precarious and things such as emergencies, medical issues, home repairs, car repairs, lay-offs, firings, or other stints of unemployment cause you to rack up credit card debt and in turn, you only making minimum payments on your credit cards for a period of time and end up paying a lot of credit card interest. Or even worse, you can’t even make the minimum payment on your credit card and you end up getting late fees, penalties, and an even higher interest rate due to your delinquencies. This is where people get into trouble with credit cards. Credit cards can cause people to have to sell off items to pay their credit card bills or deal with charge-offs, or even bankruptcy in some cases. With that, it’s important to ask yourself a few questions beofre you get another credit card (or a first credit card).

First, it’s important to take a look at your work situation and ask, “Do I feel that my work is stable, reliable, and will be there for the new future?”. You should also consider if your income will go down in the near future for any reason. Additionally, you should ask yourself “Do I see any unseen expenses that come my way?”. You see, if you don’t have a credit card, you may possibly make better decisions when financial pressures arise, such as taking another job or working extra hours to pay for an unseen expense. When we have easy credit as our disposal, we’ll too often take the easy route and just throw these bills on a credit card instead of making the better financial decision of either working more or cutting back on other expenses. If we don’t have a credit card, we may even sell of some personal items to pay for an unseen expense, but again, when the credit card is in our wallet, too often we just reach for it to cover these unseen expenses.

Credit cards may seem like an easy way to cover an unseen expense, but that is where we get into trouble and we see interest pile up. It may be wiser to cut back, sell something, work more hours, or even take on an extra job or side-hustle when these unseen expenses arise, rather than use a credit card. Everyone’s situation is unique and there’s no one answer to all of these issues that could arise, but it’s often best to avoid racking up debt if you don’t have to. Another question people should ask themselves before getting another credit card or even a first credit card is, “Are my spending habits in check or am I impulsive?”. Impulsive spending while shopping at the mall, local stores, restaurants, bars, or or taking impulsive vacations can cause trouble in one’s finances, EVEN if you’re not using a credit card, but especially is you are using a credit card. Make sure that your spending habits and impulsivity are in check beofre getting another credit card or even a first credit card.

As always, the rule of thumb is to use debt wisely (or not at all) and always use credit cards wisely or not at all. Credit cards can cause a lot of problems with peoples finances and even relationships, but they also can come in handy and be helpful if used appropriately and conservatively. Some people earn free flights from credit card reward miles, without paying any credit card fees or interest, because they are in a stable financial situation that enables them to pay their credit card bill off withing a few days after using it. Ask yourself if you’re in that stable of a financial position before getting another credit card. Always be careful when using credit cards and always spend wisely! Additionally, you may be interested in visiting our banking products comparison page or investing services and tools page. Comparing credit cards may be okay, but saving and investing can lead you to a more stable financial future if done correctly. Stay safe and have a great week, everyone!

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