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Have you been thinking about getting a credit card lately? Even though these little cards do sometimes get a bad rep, there are some reasons why you might want to sign up for one. For instance, lots of banks try and entice new credit card customers by offering them various benefits with their new account. But do all of the benefits really make it worth it? Well, it usually depends on your own situation. Here are some questions that can help you figure it out.

Can You Afford The Repayments?

When you buy something with a credit card, you won’t need to pay for it straight away. That’s because you are using credit from the bank to purchase it with. You then need to repay this credit at the end of the month. Some banks will split up repayments over a set number of months. First of all, before you decide to take out a card, you need to work out if you will be able to make all the monthly repayments. If not, you will only end up getting quite deep into debt, which could be very difficult to get out of.

What Kind Of Rewards Can You Get?

Now, it’s time to look at the rewards and work out if they are really worth it. Cashback is one of the most beneficial rewards that you can get with a credit card. This just means you will get some cashback with every purchase. However, most cash back credit cards come with a limit as to how much cash you can get in the month. Another popular benefit is store credit if you purchase a shop’s own credit card. It’s important that you weigh up the pros and cons of each benefit that you are offered, though, before you make a decision.

Would You Be Better Suited To A Different Type Of Credit?

Of course, credit cards aren’t the only credit option available to you. Your personal situation might mean that you are better suited to a different type of credit. For instance, if you just need a short-term boost of cash then you might prefer to go for a payday loan or a bank loan. As you need to use a credit card for a minimum length of time, you might not want to get tied into monthly repayments if you just need some short-term help, for example.

What Is The Fee?

Don’t forget that the majority of credit cards come with a fee. You need to take this into consideration when you decide whether or not to take out a card. Can you afford it along with the monthly repayments? Also, it’s important that you don’t forget about the card’s interest rate Interest will be added onto your monthly repayments, so you also need to remember this when you are figuring out if you can afford a card or not.

Credit cards aren’t for everyone, so make sure you use these tips when you try to figure things out.


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