How To Take Credit Card Off Itunes On Iphone

Whether or not Credit Cards are Worth Getting

CC0/TheDigitalWay/Pixabay

Whether you are looking to apply for a new credit card or are just starting out, there are a few things to know beforehand. Here we will look at what exactly a credit card is, what the benefits and detriments to having one are, what first-timers should be looking for, and other options available if credit cards don't seem like a good fit.

What is a Credit Card?

A credit card is a wallet-sized plastic card that is issued by banks and retailers which give the owners the ability to purchase whatever goods they want within their given credit limit, even if they don't have enough money. They essentially borrow money from the bank for the time being, which the owner will, in turn, have to pay back within a given time frame, usually within 25-30 days. Easy, right? Hold on. Before rushing out and finding numerous credit cards that you want to apply for and going on a crazy shopping spree, there are a few things to consider.

The Credit Card Cost

Depending on the individual and the amount of research done ahead of time, credit cards can come at a costly price. Some credit cards may have an annual fee ranging from $30-500 that is automatically taken from your account. The gold and platinum cards will have these higher fees as they also come with more benefits, but even some of the entry cards will have annual fees. Research beforehand what they may be, and if you can apply for a free credit card rather than one that is full of fees.

Always look at the Annual Percentage Rate (APR) as well before applying. According to Consumer Finance, the interest rate is the price for borrowing money which is known as the annual percentage rate (APR). Paying the APR can be avoided though if your balance is paid in a timely manner each month.

Why You Should Get a Credit Card

Having a credit card is great in that it is safer than carrying a large amount of cash, easy to cancel if it is lost or stolen and helpful as it allows you to purchase large items immediately rather than having to wait until the cash is available. You then just have to pay small amounts each month. When you apply for a credit card you also build credit, which can be useful in the future if you are looking to take out a large loan or mortgage. By proving you can pay your bills in a timely fashion, future lenders are more likely to give you the loans.

Those that have a high credit score are more likely to be approved for a gold or platinum card which offers more attractive rewards such as extended warranties, limited purchase protection on items that are lost, damaged or stolen and 5-6% cash back on items such as groceries and gas. If you have a strong credit score, it is worth looking into what perks various credit cards have to offer as all credit cards apply different terms and conditions.

Why You Shouldn't Get a Credit Card

There are also some downfalls to having a credit card if it isn't used properly Once you apply for your credit card online, make sure to keep a close eye on when balances are due. Just as using a credit card can be great for one's credit scores, it can also be detrimental if balances aren't paid on time. It is also very easy to lose track of how much is being spent so be vigilant to when payments are due as late payment may hurt you in the future.

First Time Applicants

For those that are first-time credit card users, apply through your bank and see what offers they have. Often it is much more difficult for first-time applicants to receive low APRs as they have no credit history to prove they will reliably make their monthly payments. But there is no time like the present to start creating a good credit score. If you are still having trouble getting your first credit card, look at potentially applying for retail credit cards as they are usually easier to get approval for but have a much higher APR and low spending limits. Another idea would be to get a secured credit card which would require first giving a cash deposit, making it safer for the company. If you aren't a big shopper and are still having trouble, see if you can find a co-signer, which is usually a family member. This would mean that if you don't pay your balance, the co-signer is responsible for it.

Debit Card

If this all sounds too risky, skip getting a credit card and apply for a debit card or pre-paid debit card instead. One of the great things about debit cards is that they won't allow you to spend more than what you have, which is the main risk of credit cards. They also don't have monthly payments you need to worry about nor interest rates. One thing to consider though is that this won't have any effect on your credit history which may be frustrating for some, but good for others.