Nothing makes you feel more adult than grabbing your wallet and pulling out a piece of plastic that has your name on it.
But beyond an eventful time of achievement, does it make a good idea to register an account? It depends on how you use it and whether your card meets your needs. It’s a long-term decision, as many consumers have learned the hard way.
On the other hand, it is a good step and an important start in building a strong credit history. It will eventually enable you to achieve the best possible rates on your car loans, mortgages, and many other financial tools.
Before you register, please make sure that you understand what you are getting into. These are some of the implications you should keep in mind:
1. Safety net
The opening of a credit card means access from the issuing bank to a revolving credit line. The account has a predetermined credit limit depending on the creditworthiness assessment of the issuer.
You can rack up charges as long as your outstanding balance remains within that limit.
This option for payment has its advantages in your back pocket. For one, in the event of a short-term budget problem, you will have a safety net. You can open your wallet, load it to your card if you don’t have enough money and your car requires a new set of brakes.
Of course, cards that offer airline miles based on how you spend are popular with long-distance travelers. The number of award programs has expanded in recent years, and banks give discounts on everything from hotel stays.
2. Job-related expenses
If you have occasional employment costs — and don’t have a company-issued card — the credit card can be a godsend.
It’s much easier to record, so you won’t need to delve into your money to arrange a flight to another town for a conference. Moreover, with your card, you keep any benefits that you receive.
Until your employer refunds you by the due date, your interest will not be charged. The last thing you want to do is to start paying for lunches that are not covered.
3. Create credit history
Another incentive to open your first card is to create a credit history.
When it comes to taking a car or a home loan, you will be considered as a larger risk without a track record going on.
Standard Chartered Cathay Mastercard submits the history of your payment to the credit bureaus every month. You can do wonders for your credit score if you can keep track of your due dates.
Your credit history is linked to your credit score directly. The longer you’ve got an account, the better your score.
4. Gain more flexibility in your transactions
These days, reservations for flights, buses, hotels, and foreign activities are practically online, often months in advance. Having a credit card is therefore quite important for anyone planning a trip.
By using your booking card, you are more peaceful, knowing that the quality of your accommodation or activities must be kept in check when you arrive. It’s a must-have but also a pleasant asset for everyday expenditure.
A credit card might also allow you additional freedom of financing with a higher credit limit.
You will not need to worry if funds are being held for pre-authorizations, and you will be able to cope more readily with unforeseen costs during your trip. It’s a flexible way to pay.
Moreover, the management of group bills is easy with a credit card. Pay with your Standard Chartered Cathay Mastercard twice, and check your statements and balance your costs when you are home. It will save time.
5. Travel and rental insurance
If you travel in Cathay Pacific or take more than one trip a year, it may be a good idea to get a card.
A card that includes travel insurance, especially in case of cancellation or disruption of a trip and late flights, is a life-saver.
Some credit cards also include car rental insurance. An excellent strategy to save is if you rent a car typically while traveling.
How to resolve your Financial Problems?
Nobody gets rid of financial difficulties that easily. Poor schedules or difficult times such as divorce, illness, and unemployment can make the difference. Do you need help? Here are some tips to consider:
1. Improve your credit report
Do you have poor credit? If so, you will obtain greater rates for the financing offerings. Here are some tricks to turn your bad credit into a good one.
- Pay your accounts on time.
- Keep your balance and your credit card limit on a healthy margin.
- Don’t apply for too many cards.
2. Stop taking on debt
Remember to have enough money to pay back your credit card balance and other debts. You might want to leave your credit card at home in case you tend to make impulsive purchases and regret them afterward.
How do you choose a credit card?
The easiest solution is to select one that matches your demands. There are different kinds of award programs that give discounts for travelers, cash-backs, gift cards, etc. Also, read the details carefully.
A shortlist can be made according to your lifestyle and needs. See then the annual fees and interest rates for deals in which you are interested. The number of transactions you make annually can also assist you in deciding the best option.
As long as these below points are included in credit cards, get your hands on it!
- If that manage your financial resources, bills, and day-to-day transactions
- If it allows you to make contactless payments using features like digital wallets
- Whether it allows you to safely conduct online transactions.
- If that offers some warranty and consumer protection, like travel insurance
- Lastly, it must be accepted almost everywhere in the world.
Credit cards are convenient to pay for goods and services, but they also cause many negative impacts. Credit cards should be utilized properly and responsibly. Before using them, people should consider them twice.
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