We all know that credit cards are starting to become one of the necessities that need to be inside our wallet. It has become the basic part of consumer life that it has defined what convenience is when it comes to purchasing and payments. But BDO credit cards are still personal loans. Being a loan, there is still a need for us to be responsible for the use of credit cards. Proper use and loan management must be taken to avoid getting deep into debt. Any charges applied to a credit card can grow out of hand if we are not responsible enough for handling it. Here are a few things to keep in mind when you plan to get a credit card.
- Make sure you have a STEADY source of income
Although this is an obvious requirement, some people do apply even without a source of income. Credit card issuers do a check on requirements before they grant a cardholder the right to use and access credit from them. They are not very particular on the proof of income. It can be a bank, a tax return or even business documents to support a proof that there is income which you may get payment from. We often miss the fact that our income should be steady and stable enough to provide us a source to pay our creditors.
- You are educated about finance charges, interest rates and other topics regarding loans
Always remember that the best way to avoid having a problem is knowing how the problem can arise. In cases of debt, you should know and understand how your debt can grow through finance charges and interest rates. How penalties arise and applied to your debt. Knowing these aspects will help you avoid the pitfall of being buried under debt.
- You are disciplined
This final requirement is a very important key before owning a credit card. A credit card is there for convenience and not as a replacement for money that you do not currently have. When you use your credit card, make sure that your purchase is something you can pay with cash if you didn’t have your credit card around.