So it’s pretty easy these days to get targeted for a credit card, usually with pre-approved or pre-selected offers. But does this mean it’s actually a good idea to apply for these cards? We have to be really honest with ourselves, especially if we’ve had no history of using a credit card before.
Before you go ahead and apply for that credit card you got the offer for in the mail, check your financial fitness! You wouldn’t go from couch to marathon would you? You have to make sure you can run a lap first, and then a 5k, and then maybe a 10k, then a half marathon, and so on.
Emergency Financial Plan
Credit Card Literacy
1 This includes events like taking a pay cut, losing your job, losing your source of income
2 This includes actions like reducing your rent by moving to a cheaper apartment, cutting cable, spending less, free balance transfers with no interest
If you checked off everything on this list, I think it’s a pretty good indicator that you’re financially fit enough to open a credit card! If you haven’t, you can see where you need to put in a bit more work! With this list, I really tried to capture the responsibility, planning, and awareness of financial decisions that would make a responsible credit card user. I would love to hear anything else others may think are important indicators of good financial fitness that they’d like to see included!