Be Honest With Yourself Before Getting A Credit Card

The road to a life with credit cards has always been paved with good intentions. Every year, people send in a credit card application with every resolve to handle it responsibly. Most of them don’t.

In fact, people promise so many things to themselves that it can be pretty funny to record them saying it and then look at their credit card history just a few short years later. What kinds of things do you usually hear? How about…

• I’ll pay all my credit in full each month
• I’ll get my card to zero balance before the teaser rate ends
• I’ll only use it for emergencies
• I won’t even use half of my credit limit
• I’ll only use it to pay for important items
• I’m never gonna use it for cash advances

As you can see, intent and behavior doesn’t always match. What about you? What kinds of promises that you’ll find hard to keep are you telling yourself?

Before getting your credit card, it’s important to be realistic about your financial capabilities. For instance, assuming you get into debt, how much can you afford to pay each month to cut it down? If you’re really serious about paying your credit in full month-to-month then it makes sense not to use your credit card for purchases above that amount. It’s one thing to have good intentions - it’s another to have the capability to actually make it happen.

Make sure you learn about the interest rate, annual fees and other key numbers as those things will have a bearing as to how much debt you’ll end up accruing. Get real for the meantime and save the “I’m-a-stand-up-kinda-guy” talk when you’re trying to impress employers into hiring you. A credit card may be more trouble than you bargained for if you don’t anticipate potential troubles and prepare yourself for them.