At Southridge Capital, we try to educate our customers on the proper way of doing things. Our education extends to those who already have a credit card or are thinking about applying for one.
1) You should plan on paying a little more than the minimum payment required every month. That is how the credit card companies will get you. They want you in a constant state of “revolving credit card debt.” That is the only way you will get it paid down sooner. Plan on making purchases you can afford. That is the only way to avoid that trap. You should not spend money you do not have. I had to learn the hard way.
2) Do you want to use the card on a more frequent basis? You should get one without an annual fee. Those who cannot pay off their total amount when it is due will get slapped with a nasty charge. These charges can amount to as much as $300 a year. You need to be smart about that.
3) You are signing a legal contract when you get one of these cards, even one of ours. The contracts are binding. Read everything before you sign. The company can get you on anything from APR to credit limits.
4) Shop around before agreeing to a specific card. I used to hock Kohls cards when I worked there. You will have a lot of pressure on you to sign on the dotted line when you are checking out. Head my advice. Take your time with this.
5) You should understand the benefits before you sign up. Some cards have a limited amount of benefits for purchases. Any purchase you make from a particular store may only give you a small amount back. It may not be worth your while to have the card, especially when you spend a lot of money.
To learn more about how our cards work at Southridge Capital click here.
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