How many credit card offers do you get in the mail today? With all of those offers you might be thinking about getting a new credit card but before you do there are a few things you should know before you get one.
In this article I’m going to cover some of the things you should be aware of before you sign your name on the dotted line.
What Is Your Real Rate?
First off we need to know what kind of rate the card will carry. A lot of times they get you interested by saying that this card only has a rate of 10.99%. That sounds great and all but in reality that rate is only for those who pay off their card in time.
So what happens if you don’t pay it off in time? You’ll get slapped with what is called the default rate and that be as high as 33%. In fact since the new credit card laws have gone into effect some companies have raised their rates as high as 80% to make up for the cost they are losing on the other fees.
What Rewards Does It Carry?
Next what rewards do they carry? Cards like the zero percent credit cards sound like a great deal but they do this so you’ll rack up a lot of debt and once the 12 month 0% period is up you’ll get slapped with the a huge interest rate.
The same goes true with other rewards like airline rewards cards, point’s cards, and cash back rewards cards. Rewards are designed to get you to spend money and hit you up with the interest down the road.
What The Statistics Can Tell Us
Today statistics tell us that people who have credit cards will spend 30% more than if they didn’t have one at all. I personally admit how true this is. Since owning two credit cards, a month has never gone by where I haven’t made a payment of some type.
The reality is Americans have become addicted to credit cards and the amount of debt that is being accumulated is staggering. Of the top 10 credit cards available today not one will benefit you by building up huge amounts of debt on it. They are designed to get you in debt.
Should You Get Another Credit Card?
So should you get a credit card? My best advice I can give you here is that if you still plan on getting one is to pay off the card every single month. Otherwise you will run the risk of getting into debt up to your eyeballs. This is a personal experience I’ve gone through several times and never want to do again.