Having A Credit Card

Credit is the ability of a customer to obtain goods or services before payment, based on the trust that payment will be made in the future. The lender is trusting, an individual, that whatever they had purchase with a credit card, will be paid by the due date. Banks make agreements with the clients, where they explain terms, and conditions; the client is asked to sign documents to fulfill all the mentioned points. There are always two types of stories; happy ending and tragic ending. The happy ending have as protagonists, people who will remember the agreements made. On the other hand, there is the tragic end of those who forget the agreements. Here is when some people start having problems, after being approved with the credit card, their mind forgets the conditions, and this is something that should not happen. The causes of mishandling a credit card can include; poor budgeting skills, debt because misuse of credit card, and impulsive spending.

Poor budgeting skill; it takes time to get used to learn how to manage our salary. There are several different types of employment. Either those whose salary is weekly, every two weeks, monthly, or annual. On the other hand there are self employees, unemployed; credit card is a great help in some situations. Maybe they need to purchase groceries, pay a utility bill and they haven’t received their payment yet, credit cards are a good for this particular situations. Have a budget is important, because not everyone knows how to deal with money and is harder to know how to manage it. Especially this it was never taught in childhood or adolescence, get used to have priorities is not easy. For example: be aware of house rent or house payment, car payments, utilities. If the person that owns a credit card has not realize the responsibilities that this brings they will use it at any time without really knowing their financial status

Debt because misuse of credit card; it’s vital that people understand that having a credit card is a privilege, it must not be use at all times or for unnecessary purchases. When talking about credit cards it’s very important to keep in mind the word. “Interest” Because if this point is overlooked, problems will come. Be sure to know every rule, account balance, and especially the due date. Interest can be devastating if payments are not made on time. Thinking of paying everything or everywhere with a credit card is not a smart choice. Having bad spending habits will take people to debts they did not even imagine. Proverbs 22:7 the rich rule over the poor and the borrower is slave to the lender.

Impulsive spending; when it comes to; what is needed? Or what is wanted? There is a big difference. We don’t need everything is advertised for example in TV, but some people can’t resist to this, and even if not having the money to buy it they can purchase it with help of a credit card. Perhaps an individual is shopping for a birthday present, while in the store, they see a beautiful swimming suit during winter time; this is an item they don’t need!!! They just want to get. Impulsive buying is something that definitely needs to be avoided. It is difficult to judge who will be worse on this issue, whether women or men.

Priorities are what really take place when having a credit card. It is a two-edged sword, if used in the right way, good credit is obtained, if used stupidly, problems will be faces. Before singing any important documents, be sure to really understand each and every clause, is the future is being discuss, a good credit will open a lot of opportunities; for example: a better car can be purchase or a new house. A bad credit can cause the lots of belonging, cars even proprieties.