It’s the year 2021 and it is almost 2022. Time flies and we don’t seem to notice how much technology has improved over the years. We live in times when there are tons of different payment options, and one of them is the credit card. See a little about payment history here.
Although this is not a new technology, unlike digital currencies, and smartphone payments, credit cards are still one of the financial assets that have developed over the years. The first ones appeared in the 1950s, and since then, they have turned into a standard payment tool for billions of people around the planet.
Today, they can be connected through smart apps to our phones and we can pay with them without noticing how much we have on our accounts, and if we have cash in our hands. Everything’s digitalized and easy to work with.
However, getting a credit card means that you need to be aware of some issues that might come across after you start using it. If you’re thinking about purchasing one, you must know what comes with it, since every action means causing a particular reaction with consequences. Go on if you want to know what some of the most crucial issues you must know are.
1. You must understand that spending should be done responsibly
When you get a credit card with a poor credit score you must know that you’re getting a ton of benefits, but you’re also getting a lot of responsibility on how you’re using it. The credit card will have a ton of money on it, and your credit score suggests that you do not have unlimited power over them.
Most people with a poor credit score will struggle to repay what they borrow from it, which is why this must be your first concern. You must have this as a priority in your credit card owning. When you start spending it, you must be aware that these funds will need to be returned, and so act accordingly.
Make sure that you have a plan of how much you borrow and how will you return them. Understand all the details about what it is going to cost you to put products on your credit card, and find ways to get them with fewer negative aspects for you.
2. Every cent you spend must be returned (with interest)
No matter how positive the features of the credit card are, you must be aware that for every cent you get, you’ll need to return. More importantly, every cent will most probably come with an interest rate. Depending on many factors, the interest rate will vary from very low to very high.
Even if you get the ultimate beste kredittkort with the perfect interest rate that you won’t find anywhere else, you still must be aware that it will affect your spending. If you spend $100 on a product with your credit card, be sure that you’ll need to return more than this amount. That’s the interest rate effect.
Before getting the card, you must look through the interest rate options that various financial companies issuing credit cards offer. Find the one that will be the most suitable and affordable. If you’re working with a poor credit score, be sure that this is going to be a true challenge.
3. You can win tons of prizes if you follow the rules
Following the rules that come with the credit card application may get you a ton of rewards. It doesn’t matter how poor your credit score is, if you got approved, then you instantly become eligible for some of the rewards that are allowed with your card.
Look at what the credit card issuer offered and if you find some of the ideas fit for your spending habits, then go ahead and start spending to get rewards. Most cards offer a cashback option, which is excellent for those that don’t like getting prizes, but pure cash.
Other cards will offer points for particular products, flying miles for airplane tickets, and other stuff. It’s up to you to decide what fits you best when choosing a credit card, and see if you can fulfill some of the rules to get eligible for these prizes since not everyone gets them instantly. In general, the more you spend, the more prizes you’ll get.
4. There are lots of benefits to having one
When you get your application approved, you become eligible to use a lot of benefits that come with the kredittkort. Some of these are going to be highly useful for you, which is why you must do your thorough research before deciding which one is going to be perfect for you.
Not all of them have the same benefits. Some are better than others, while some are going to offer things that you’re fully not interested in. Search for the benefits that make you happy and are useful – these are the cards that you will find the most use of.
5. You become one of the many using it
There are billions of credit card users around the world, and millions of them have a poor credit score. These people get them to refinance their debts or other reasons, but one thing is in common for everyone – they find great use by having them.
In the US, there are hundreds of millions of users. Every American has four of them on average, while some people have a whole collection of more than 10. If you feel like one offers more benefits, you should feel free to apply, and if you’re eligible, the bank will provide one for you.
6. It’s safe holding one because it is insured
One thing that might be the most beneficial out of all financial payment tools is the fact that there’s no safer payment option. If someone tries to rob you, be sure that they are going to fail because the card is insured and all the funds on it will stay intact on your end even if a hacker rips you off.
The insurance companies are going to get your money in full, and the hackers will be then prosecuted formally. This is not your concern, of course, so you can sleep peacefully knowing that your money is safe and no one can touch them.
7. You can use it for grace period payments
Together with what we just described when we talked about safety, comes the grace period payment. Aside from having a financial benefit from you by not paying an interest rate if you manage to pull it off in time, it also has a safety feature that everyone should know.
When you get a service or a product that you paid with a credit card, you get the chance to withdraw the funds if you’re not satisfied with the vendor’s service. How? By simply informing your financial company that you’ve been provided with poor service and you’d like to hold the money until you get the right service.
Then, the vendor has no option but to come in fast if they want to be paid for what they provided. This is a form of a grace period payment that can come in handy sometimes.