Should you get a Credit Card? by Samantha Asher

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Some people look at credit cards with an evil eye. They wouldn't dare use a credit card for anything. Why? There are several reasons why someone might not like credit cards. They may have had bad experiences with them in the past. If they got into heavy debt they wouldn't want a repeat experience. They may have had it drilled into their head not to have a credit card from their parents who have either experienced the woes of credit cards or are super-savers and understand the consequences that often come with them. Or, they may just see no need for them and would rather avoid the mess altogether.
Then there are the people on the complete other side of the spectrum. These people have a large stack of credit cards taking up most of the room in their wallet. They charge everything and anything they can to their credit cards looking for the reward points they are promised. What is the problem with most of these people? Very few people with multiple credit cards used frequently actually pay off their balance every month. This means that they are borrowing money on a very high interest rate.
Which one are you? Do you avoid credit cards like the plague, or do you charge so often that you can't remember what color a dollar bill is? If you're reading this article, you are probably somewhere in the middle, or most likely you don't have a credit card but you are thinking about applying for one. Should you get a credit card?
This all depends on who you are and your personality. Are you financially responsible? Everybody would love to say they manage their money perfectly, but it's just not the case. If you have trouble budgeting your money, getting a credit card should not be your top priority. You have to be ready for credit. Do you budget monthly? Do you put away money into savings every month? Do you pay all your bills on time? Do you buy only what you need and do you only buy stuff you want when you know you can afford it? Have you been able to always stay out of debt?
If you can honestly answer yes to all these questions, a credit card might be okay, but first think about why you want a credit card in the first place. Is it because you can't afford the life you want to live and want to borrow money to buy what you want? In this case, you should NOT get a credit card. You need to seriously reconsider your financial situation. Is it because you just want to be able to swipe your card and go when you are shopping? In this case you can easily use a debit card from your bank the same way. They will often ask you debit or credit, and if you choose credit you can sign and go just as with a credit card.
Do you want a credit card to earn points? If you spend a lot of money out of necessity and are confident you can always pay off your balance in full every month, getting a card for points might work out. Let's say you get a credit card that gets 2% back on most purchases. If you charge about $1,000 a month, you could be getting back $20 a month from rewards. Other cards offer reward points redeemable for frequent flyer miles or hotel stays, and this would work best for people who use these amenities often. Again, this will only be worth it if you always pay off your balance, or else you'd be canceling it out and still owing more after interest. Also, if you do charge that much, make sure there is no limit to the percent you could get back or at least that it's not too high.
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