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When it comes to credit cards you have to understand that they can be a great tool and they can be an evil menace if you do not treat them properly. There are many choices out there from cards with high limits to store credit cards and some with rewards or cash back. It is really up to what you need and what you can handle with your budget.
You should never choose a card with a limit so high that if you had to max it out you could not pay it off completely within 3 months. This means that if you have a low income, you need to have a low limit so you do not end up in debt. You also need to be very strict with yourself and only use the card when you have to or pay it off each month.
Another thing to consider when getting a credit card is whether or not you want to use it for emergencies, online purchases, travel, or any other reason you might want it for. If you have a good amount of financial discipline, then you can get whatever you want and you will be fine. If you do not you need to have a lower limit and you need to tell yourself that you are only going to use the card for emergencies or something of that nature.
This can be a great tool to build credit, but you must also understand that if you carry a balance on your card that is higher than 25% of your limit you are actually going to be hurting your credit some. This means if you have a $ 1,000 limit you need to make sure your balance that carries from one month to another is less than $ 250.
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Source by Gressly Stevens
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