For people who do not own a credit card before, they will be tempted to apply for a credit card.
The credit card issuing banks are running various promotions and advertising campaigns to recruit new credit cardmembers. Mind you, some of these promotion and advertisement themes are really captivating for young adults.
Gone are the days that credit card is promoted as a sign of prestige or status or needs. The current promotions and advertisement depict credit card as part of lifestyle, convenient, travel companion, avenues to get discount and necessity.
Should I apply for credit card?
You could have asked his question yourself or to close friends. The opinion of should I or should I not apply for a credit card is very personal and individual. Therefore there is not right or wrong nor good or bad in owning a credit card. This is because credit card is just a lifeless financial instrument.
Many people get into serious credit card debts not because of owning credit cards. It is more of how they control and manage their finances. Although with credit card, the temptation to overspend is there, you can avoid it if you have a good financial planning and budgeting.
In fact if you have good financial planning and budgeting, you can use the credit cards to your advantages. Some of the benefits of owning credit cards include:
1. Use it as a convenient tool.
2. Take advantage of the spending discounts at merchants.
3. Get freebies on offered as welcome gifts.
4. Use it as a emergency cash standby.
5. Accumulate loyalty points and exchange for goods and services.
One caution tip here. Do not use the credit card to finance another debt or loan or for investment purpose. This is one mistake that lead to many people to run into credit card problems.
