How good would it be to look at a list of credit cards, pick one and stick with your choice knowing that the plastic that you have chosen is the one that you will have for the rest of your lifetime?
“Wish it was that simple” I can sense what you are all thinking, because we all know it isn’t and the older and wiser that we get, the more chance there is to switch from our original credit card, in search for a better deal.
Most people when the thought of getting a credit card, usually find that they turn to their bank or building society, when a credit card is on the agenda, this means you are jumping into a credit card, that either you are buying into because you have an account with or the bank or building society offer you one because you are already a customer.
This will lead to you having a credit card that doesn’t suit your needs, with a high interest rate, this could lead to you max-in out the card if you are in a low paid job and you may turn to having the plastic of a few different card issuers in your purse/wallet.
It doesn’t have to work that way and the best thing to do if you feel that in everyday life you need a credit card, then sit down get as much information on all the credit cards that are out there and make sure that you pick the one that suits you and what you need it for in the first place and don’t take a credit card out that only suits the card issuer.
The card issuers also change little things like raise your credit limit, hoping for you to spend even more on the credit card, as you will feel that you have more spending power and giving you the thoughts that they have raised my limit, therefore they must think that I can afford to pay. Be careful as it only sucks you further into debt.
Payment protection is also advised by the card issuer to take out to protect you for illness or loss of employment, but always check out the small print on this cover, as much of it may not cover you anyway and you will be paying for an extremely expensive payment protection that cant work for you.
Credit card companies will say that they start first time credit card owners on small fixed limits (£200-£300) to try to teach them how to keep from getting to far into the debt trap, but in reality a few months down the line and a quick check of your credit card statement and you will notice a marked difference in the amount that is available to you to spend.