Introduced just before World War II by individual corporations in the US, credit cards helped company personnel go on business trips without spending personal money. The pioneers in credit cards were Diner's Club and American Express. Today credit cards are in use by the young and old. Credit cards are a convenience when used correctly and have over time become a representation of a person's credit worthiness. There are a great many advantages as well as disadvantages to using a credit card. The card is useful if you are careful not to fall into debt by spending more that you can afford. If you are unable to clear the bill accrued on the card each month then the interest payments alone will be phenomenal. A card can help you travel and shop without carrying rolls of cash and is useful in times of emergencies like hospitalization. A credit card is offered by banks and financial institutions only after checking the credit worthiness of the applicant. To be eligible for a credit card one needs a great credit report and score. Before issuing a card the bank or institution will take into account: the number of credit cards owned by the applicant and the amounts due on each; the loans availed; payment defaults; late payments; ownership of house and car; whether there has been a judgment for unpaid debts or a filing for bankruptcy; the monthly income and sources; and financial burdens. Credit cards come with many advantages. Many offer discounts on travel, gas, and shopping. Others carry a bouquet of offers like cash back, reward points, and flying miles. A credit card properly managed means easy sanction of loans, lower interest rates on mortgages, car loans, and personal loans. The market is flooded with credit cards of all kinds so it is important to learn about each and choose what will benefit you the most. Never accept the first offer made by a credit card company and always read the fine print. Most credit card companies are market savvy and make attractive promises to consumers. To be eligible for a credit card you need to get a credit score and report ready. Sit down and study the two and find out whether you need to improve them. Read as much as you can about the world of credit cards and the pros and cons of owning one. Find out which kind of card will be most suitable. When in doubt ask your bank manager for advice. Factors you must consider are: annual percentage rate, fees, grace period, transaction fees and other charges, special offers, and customer service. In order to apply for a card you need to be over 18 years old, have a regular income, and have on hand all the documents required including a credit report. If you do not have accredit report you should obtain one form a reputed agency like Equifax, Experian, or Trans Union. Before applying for a credit card, you must weigh all the pros and cons so that you do not take on more than you bargained for. And use a credit card wisely. Never spend more than you earn. Budget your finances and a credit card will work well for you.
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