A credit card is a form of borrowing that many people use. It can be really useful but there are some people that get into a lot of debt with one. Therefore it can important to decide at the right age when you are responsible enough to use one. It is worth thinking about a number of factors in order to help you to make your decision.
It is worth making sure that you have a regular income before you get a credit card. You will need to make regular monthly payments against the card, whether you choose to make the minimum payment or more and so you will need some money in order to be able to afford to do this. It is wise to pay back everything that you owe on the card each month because then you will pay no interest or other charges for the card. If you plan on doing this, you will need to make sure that you have enough money to always cover those payments. Having a regular income is essential for being able to do this. You may also find that without a regular income you will be declined when you apply for a card because your credit rating will not be very good. Lenders like to see that you are capable of repaying a card before they let you have one. They will also give you a higher credit limit if they feel that you are earning enough and regularly. If you can only get a card with a very small credit limit, you may not think that it is worth having.
It can be worth only getting a credit card if you have had experience of budgeting in the past. With a credit card you will need to get into the habit of checking how much you are spending on it regularly to make sure that you will have enough to pay it when you get the bill. It may mean that you will need to budget to make sure that you have the money that you need to be able to do this. If you have had prior experience of doing this then this will allow you to know how to do it and you will know whether it is something that you feel confident in doing.
It is worth thinking about any previous experiences you have had with loans. This may be your own personal experience or that of a friend or family member. If you have had bad experiences, either yourself or someone close to you getting into trouble with not being able to repay a loan and struggling as a result this could help you. It could have allowed you to see the consequences of bad debt and mean that you will be more sensible when you are using your credit card and not get into that situation.
If you have had debt yourself before, you will know what your attitude towards debt is like. You will know whether you are likely to spend more than you can afford or budget carefully and manage it sensibly. You will also know whether you will be able to pay everything off before you get charged or whether you are likely to keep the debt hanging on and pay more than necessary for it.
Need for a Card
It is also worth thinking about whether you have a need for a card. A credit card is useful because you get insurance on items you purchase so if they are not satisfactory and the retailer will not refund or replace the card issuer will refund you. Also if you use it online and you get scammed there is a higher likelihood that you will get your money back compared to using a debit card.
You may also want a credit card so that you can manage your money more easily. It can be much easier to buy everything on the card through the month and then pay it off when you get paid. This will mean that you will not have to keep checking your current account to see if you have enough money in there to cover the cost of things and you will know that there will be enough money to pay the card at the end of the month.
So it is not really about age, when you are considering getting a credit card. Consider whether you have a need for the card, whether you feel you are responsible enough to use one and if you have a regular income that will allow you to pay for it. As well as this, you need to take a look at different cards and see which you think will be the best for you. There are different types of credit cards and they have different rates. You therefore need to compare them and think about which will offer you the best value for money.