| If you are young and just getting to grips with financial | | | | happen, and having a backup amount of money in the |
| products, you may have looked into getting a credit | | | | form of a credit card can really help you out of tight |
| card. Although credit cards are not an essential | | | | situations. Also, credit cards are more secure than |
| product for everyone, many people have at least one | | | | cash or cheques, so you are less likely to lose your |
| card, and so it pays to know about how they work. If | | | | money or have it stolen. Another benefit of having a |
| you want to know whether or not you are ready for a | | | | credit card is that it can help you to build a credit |
| credit card, then here is some advice to help you out. | | | | history. If you use your credit card responsibly then |
| When to get a card? | | | | you will show lenders you are safe, and this will help |
| Most people think about getting their first card when | | | | you to secure important financial products later in life |
| they go to University. Although some avoid the | | | | such as loans and mortgages. |
| temptation and others get cards earlier, generally | | | | Problems with credit cards |
| speaking you should look at getting your first credit | | | | Before you decide whether to get a credit card or not, |
| card from about the age of 18 onwards. When you | | | | you should know the problems that can occur. Firstly, |
| are at University or starting out a job, you are likely to | | | | having a credit card can be dangerous in the wrong |
| have more outgoings than you did before, and a credit | | | | hands. You can quickly accumulate a large amount of |
| card is a useful tool to cover some of these | | | | debt, both hurting your finances now and in the future |
| expenses. | | | | by destroying your credit rating. Also, keeping up with |
| What type of card to get? | | | | repayments can be hard, and having debts is generally |
| If you are going to University, then you should look at | | | | not a good thing. |
| getting a dedicated student credit card. These cards | | | | Are you ready? |
| do not require such strict credit checks, and you can | | | | If you think you are ready for a credit card, then make |
| usually get a much better limit than you can with a | | | | sure you know the benefits you can receive and the |
| regular card. Also, you will receive additional benefits | | | | problems that you might have to face. You should ask |
| such as discounts on books, clothes and music. If you | | | | yourself whether you really need the card, and if you |
| are starting a job, then it may be harder to get that | | | | will honestly be able to keep up with the repayments. |
| first card, although if you can prove your income you | | | | Just because your friends have one does not mean |
| should be fine. | | | | you should get one too. However, if you believe a |
| Benefits of having a credit card | | | | credit card is necessary, then make sure you shop |
| Knowing whether you should get a credit card | | | | around to find yourself the best deal, and only spend |
| depends on whether or not the benefits are real | | | | what you can realistically afford to repay. If you do this |
| benefits to you. One of the major benefits of having a | | | | then you will get the best out of your credit card |
| credit card is that it is great for emergencies. If you are | | | | without putting yourself too far into debt. |
| new to being independent, unexpected things can | | | | |