Credit Cards Are Life Changing
Credit cards can change your life, if you let them. They can also ruin your life if you allow that as well, but today we will talk about the many ways that credit cards can help you entirely. People think that the boost of serotonin they get from shopping is like a natural, safe way of elevating their own consciousness, but if anything, it can be a dangerous trap.
You have to consider the fact that great power like plastic money can provide you with many tools, tasks and responsibilities, and as a result, you have to consider those tools carefully. Where can we get this type of financial freedom that can actually boost our mental health but also damage us if we are not careful?
This is why mindfulness should be number one on our priority list when we are considering what type of financial instruments, we want to invest in. You really should click here to learn more about what credit limits are, and how we can get mired in their complexity if we do not think carefully.
If we have any leeway, we should always think about the various ways we can get in trouble if we over invest without thinking critically about the money we have to lose. Can you afford to take a financial hit of several thousand dollars?
If you can, then you should consider a higher credit limit on your credit card because paying it off will not be difficult for you. If you cannot, then you should consider a much lower credit limit.
The credit limit is not the place that should make you shake and shiver at night, that would be the interest rate and Annual Percentage Yield. These figures are going to determine just how much you will end up paying back in the end, especially if you were not planning to go into serious debt.
Take on the debt you can handle in the moment you are thinking of applying for a credit card and not anymore. Yes, the bank will charge you money for accessing money they gave you in the first place via this piece of plastic that you can utilize all over the world and online.
Also, you have to plan for contingencies in the event that you lose all your income, and you have to live on your savings or on this very credit card itself that you have procured.
What Do You Need To Know?
Be mindful of the trap doors that exist within the world of financial instruments, as there are land mines everywhere that might interfere with your ability to make a clear headed decision. This is why there are websites like kredittkortinfo.no/ to help you compare and contrast the plastic that you are offered by different banks.
It is key to analyze the credit limit alongside the interest rates and APIs before you choose which institution to go with. People keep forgetting that these banks are designed to enrich their investors and board of directors and trustees.
Us individuals who walk into banks are not at the top of the bankers priority list, as there are more lucrative contracts that they could be pursuing instead of focusing on us small time customers.
As a result, thinking about the existing holdings of a bank is also very important. There are enormous banks that are essentially conglomerates of multiple institutions held together under a massive corporate umbrella, and there are smaller family owned banks that go back generations in a smaller town.
Going with an institution that is too small could be risky as the FDIC insurance for the institution might not be enough to sustain any major crashes or problems that the market might see. Going with an institution that is enormous may have more fiduciary protections, but will that bank have your best interest at heart should there be a massive collapse as well? Will they choose their more valuable clients over you when there is money to be redistributed across millions of homes in America?
You also have to think about the points and perks that you will get from your credit card. There are many people who think they have earned millions of points to fly on the airline of their choice, only to discover that there are blackout dates that they cannot use to travel when they really want to.
Imagine you used your credit card for five years straight and saved up your airline points because you thought you would be able to enjoy a cruise at Christmas. You go to book your points and find out two major developments — you cannot cash your points in to travel around Christmas time, and you cannot cash your points in for tickets to a cruise, even though when you got the card five years ago, that had been advertised!
What Are Your Options?
That is how quickly these cards can actually end up making a major turn in what they offer you, as opposed to what was advertised when you first invested in the plastic. You have to ensure that the items you thought you were getting with the card are going to be in existence for the duration of the card itself.
Also, if the card itself starts off in a regular tier, you should be able to enjoy the mobility and flexibility of joining a higher tier of card if you want to. And as a result, you may be able to enroll in a flexible payment plan for the line of credit you take out with each and every institution you focus on.
This way, you can enjoy some mental relaxation while you grow your credit with a specific institution that offers you many options in how you can improve your credit score via their instruments.
Also, people really do need to think carefully about the credit score they will end up with after they have invested in a particular credit card. Will the combination of the API and interest rate result in such a high yield for the bank that you are unable to pay it off in time?
Will you end up paying double or triple the amount you borrowed in the first place? This is a credit card, not an unethically insecure student loan foisted upon two generations of innocent students in the United States of America!
Therefore, you should be able to secure yourself a credit card that does not put you in the kind of debt that requires you to end up on a game show to try to cobble together every extra penny you can grasp.
How much money do you want to have in savings at the end of this process? Hopefully enough to handle the entire batch of bills you will have once you are in a different place financially.
Do you have the money to stay within the budget you are putting forward for yourself, especially if the purchases you intend to make are incredibly expensive and beyond your own ability to save.
If you cannot save enough money to put yourself in the place you need to be, that credit card can save your life if you are certain, you will have the income to offset the debt you will put yourself in.