The Kinds of People Who Should NOT Have Credit Cards
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Even if you really want a credit card to enjoy the discounts, perks and reward points that come with, it may not be a good idea if you bear similarities to the people on the list below:

1. People Who Are Impulse Buyers

Impulse buyers have difficulty sticking to a budget and purchasing only necessities. Thus, an instrument with a seemingly unending supply of cash such as a credit card (shopaholics can be bad at recognizing limits) may be too tempting in the hands of these people.

The Kinds of People Who Should NOT Have Credit Cards

The Remedy: If you are an impulse buyer, you may still be able to swipe a credit card without going overboard by simply setting a lower credit card limit. But if you just can’t trust yourself, go with a debit card instead and practice healthy spending habits before you ‘graduate’ to credit cards. FYI, cashback credit cards are the best choice for ‘fresh grads’ who love shopping as the cards help you to save by giving a certain percentage. of your expenditure back.

2. People Who Don’t Completely Understand How Credit Cards Work

Don’t scoff at folks who don’t have a thorough understanding of how credit cards function as two-thirds of Americans don’t know – and about 64% of the Gen-Y crowd in Malaysia lack an understanding of financial products. This means that the majority is spending without grasping the severity of their swipes, potentially leading to greater debt.

The Remedy: If you too are in the dark about credit cards, simply take the time to learn more about them before signing up. Call up banking customer service lines and ask about the products you are interested in. You can also check out our many credit card articles online to ensure that you get the most out of your card and not the other way around!

3. People in Heavy Debt

Racking up a large credit card bill will only push persons in heavy debt further into it, especially if they have a spending problem. And the more in-debt one is – the closer one gets to bankruptcy; a credit card will only compound the issue in these situations.

The Remedy: The first thing to do when you find yourself in such a circumstance is to start paying down the debt with highest interests and eventually work your way into clearing them all off before you seek a new credit card. Another option is to consider if a (low-rate or zero-percent) balance transfer is right for your situation; it could help you consolidate your bills and save on interests.

4. People Who Don’t Pay Bills On Time

Your credit card bills unequivocally need to be paid on time and if possible, in full before the grace period expires. If you constantly space on paying your phone or cable bill, you might be the kind of person who forgets your credit card bill as well.

The Remedy: The good news is that there is a simple remedy to this problem – just set up an automatic payment from your bank account. A direct debit can be used to pay your credit card bills in a timely fashion; do check on your bills before the debit date to ensure no fraudulent expenses are being charged. To help you manage your bill easily, why not opt for zero annual fee credit cards?

Become More Creditworthy

There are tonnes of benefits to having credit cards and you should not have to forgo them. Thus, if you find yourself resembling the people who (probably) shouldn’t hold a credit card – you can certainly make changes to your financial habits and become creditworthy. This way, you too can enjoy more value for money as well as the security that comes with a credit card.

Here’s a quick recap on how to improve your chances of getting approved for a credit card in the future:

  1. Practice good spending habits with a low-limit credit card or debit card first.
  2. Check your credit history and clear all debts.
  3. Learn more about credit cards, interest rates and other related topics.
  4. Set up automatic payments to avoid late charges and penalties.

If you are indeed ready for credit cards i.e. with stable earnings, good credit history and well-organized financials, then head on over to our comparison page to discover the perfect card for your needs.

 

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