Understand your need and purpose before applying for a credit card

The credit card provides you the freedom of credit limit that you can use at your own needs. This allows you to get financial benefit but do not forget that when it allows to have financial freedom, it also brings responsibility of financial burden.


Before applying for a credit card, we must think and accept the truth that we should pay it back. And in the event of failure of repayment, that brings with the additional financial responsibility and an impact on your credit history. Therefore, never apply for it on the basis of someone told you to apply for it or you just want to have it. We should first define the need of it. Why we need the credit card? Where I make spend from it? What are the current financial responsibilities that I have tackle with now? All these should be analyzed.


Credit card should never be used for the luxury purpose neither for unnecessary expenses. And before making any spend on it, we should think how we are going to repay it back. It is always a bad idea to repay the credit card by applying any other credit card or loan. So first of all, we should look at our need. Actually, we need it?


The common purposes of applying or having a credit card are;

  1. To have convenient payment.
  2. To create your healthy credit history.
  3. To use it as emergency fund.
  4. To enjoy various benefit on shopping like in retail stores, travel, utility bills payment.
  5. To track your expenses as it allows to see where the expenses were made.
  6. To manage your monthly expenses during the end of month.

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