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Should I get a credit card?

Credit cards have become an integral part of our financial lives, offering convenience and flexibility for making purchases. However, before you rush to apply for one, it's essential to consider various factors to determine whether a credit card is the right choice for you. In this blog post, we will explore the key aspects to ponder before getting a credit card, the potential benefits of owning one and the risks associated with credit card usage.

What Should I Consider Before Getting a Credit Card?

Cost Comparison

One crucial aspect to consider is whether a credit card is cheaper than taking out a loan. Credit card providers typically charge higher interest rates compared to loans, especially if you carry a balance from month to month.

However, paying off your credit card balance in full each month can help you avoid incurring interest charges altogether. Some credit cards also come with an interest-free period, so you don't need to pay interest on your borrowing for several months while still reaping the benefits of the cash in your bank account.

Overdraft Accessibility

Some individuals prefer credit cards over using the overdraft that comes with a debit card because they find them easier to use. While overdrafts may require approval and have associated fees, credit cards provide instant access to funds up to your credit limit.

However, using this feature responsibly is important to avoid accruing unnecessary debt. It can also be difficult to get a credit card if you have a poor credit rating.


Before obtaining a credit card, assess your financial situation and credit record carefully. Evaluate whether you have a stable income and a budget that allows for responsible credit card usage.

If you are already struggling with existing debt on your credit file or have a history of financial mismanagement, it might be wise to hold off on getting a credit card until you are in a more stable position.

What Will I Be Able to Use My Credit Card For?

One significant advantage of owning a credit card is the potential to improve your credit score. By using your card responsibly and making the minimum payment on time, you demonstrate your creditworthiness to lenders. Positive credit history can open doors to favourable loan terms, such as lower interest rates, in the future.

Credit cards often come with enticing rewards programs. These rewards can add value to your spending as long as you pay off your balance in full each month to avoid interest charges and build a good credit history. Depending on the card, you can earn cashback, accumulate points for flights, hotel stays or other travel perks, and even transfer existing debts to take advantage of lower interest rates.

If you are struggling with debt, you can apply for a balance transfer where you place the debt onto a credit card with a lower interest rate or an interest-free period. There is usually a balance transfer fee that comes with this.

What Are the Risks of Getting a Credit Card?

Debt Accumulation

One of the most significant risks associated with credit cards is the potential to accumulate debt. Failing to pay off your balance in full each month can result in high-interest charges, making it challenging to get out of debt. It's crucial to exercise discipline and only borrow what you can afford to repay.

Negative Impact on Credit Score

Responsible credit card usage is vital for maintaining a healthy credit profile. Missing credit card payments or carrying high balances relative to your limit can lead to a poor credit history. A lower credit score can limit your ability to obtain loans, secure favourable interest rates or even rent an apartment.

In conclusion, whether or not you should get a credit card depends on several factors. Consider the costs, accessibility of funds and whether you can afford to repay your borrowing in full each month. Credit cards can provide benefits such as improving your credit score and offering rewards, but they also carry risks of accumulating debt and damaging your credit history.

Ultimately, it's important to approach credit card ownership with caution and responsible financial management to make the most of this financial tool.

More Information

Credit Line vs Credit Cards

The Pros and Cons of Using An Overdraft

How does cashback work?

Check out our other great content in our Info Hub, with articles about the different types of credit products, money management tips and help with saving money!