Many people have credit cards, but there are some people that do not have them for a variety of reasons. However their reasons may not be justified and so they may be perfectly safe to have a credit card. It is good to have a think about possible reasons that credit cards may not be safe so that you can decide whether you should have one or not.
Can I use it online?
Many people get worried about spending money online and they are justified I feeling like this. We do hear about various problems occurring where people either have their identities stolen or money taken as a result of using a credit card online. However, there are ways to protect yourself against this sort of thing happening and therefore to make it a lot safer.
Making sure that you have a virus checker that is up to date and running can help. Then make sure that you are visiting trusted sites. Check that the address of the website starts https which shows that it is secure due to the ‘s’. It should also have a padlock. Also check that the web address is what you expect it to be as if you click through an email. Advert or even search engine there is a chance that you will get redirected to a fraudulent site.
Are the cards secure?
Credit cards can be used if stolen up to a certain limit. With contactless now being available in many shops it means that if someone steals your card then they could spend up to £30 in a lot of different places. However, for amounts higher than that they will need your PIN which means that unless you leave it with your card they are unlikely to be able to take more money.
The credit card company will also notice if they feel that the card is being used in a way that is not typical of your normal spending pattern. This means that they may freeze the card if they suspect it has been stolen. They will also reimburse money spent on the card once you report that it was stolen.
Will I spend too much?
Many people do worry that they will spend too much money on a credit card if they get one. It can be difficult to keep track on what you are spending and then you can end up spending lots of money and finding that when your bill comes you cannot afford to pay it. However, there are some ways to make sure that this is not a problem. You can write down every purchase that you make on the card and add up each one so that you know how much you have spent. You can also set up online banking and check your balance online to keep a track on how much you are spending.
Of course, even with keeping track on it you may be tempted to use the card to buy more things than you need. Some people get into the mind-set that a card will give them money to spend so they will spend the credit that is available on it. This can be hard for some people to control and you may know if this is likely to be the case for you. If you are worried that your spending will get out of control then it can be best to avoid having a card at all.
Will I pay it on time?
It is important to repay the card on time. You will be sent a bill and you will be expected to repay the minimum payment by a certain date. If you want to repay the card in full, you will be given a date to do this by as well. If the minimum payment is made or any payment which is not the full amount owed, then interest will be charged on the remaining balance. This means that you may be keen to repay the whole balance wen required so that you can avoid this charge. Otherwise you may be keen to make sure that you pay the minimum balance so that you avoid any fees.
There are ways that you can easily make sure that you do this. Just set up a direct debit to either repay the full balance or the minimum balance on the required date. The credit card company can organise this direct debit for you so you have no need to worry about making sure that it is paid on time. However, you will need to make sure that you have the money available to pay it. It is best if you can arrange the direct debit so that it comes out of your bank on or just after the day that you are paid if possible so that there is money in the account to pay it.
So as you can see there are quite a few reasons to be concerned about having a credit card. However, there are precautions that you can take so that you can protect yourself from the problems that might happen. It is important though to make sure that you do not spend more than you can afford to repay on the card, that you check you are using it on genuine websites and that you repay it on time. You will know whether you can trust yourself to do this or not and whether you want to take the risk. Credit card debt can be expensive and so it is worth making sure that you are happy with the idea that you need to either pay it all back on time or that you will be prepared to pay the interest charges that go along with it. These charges can soon add up and so you will need to keep calculating how much you can afford to repay if you want to make sure that you avoid them.