Applying for a credit card seems like the norm nowadays. It’s a privilege that many people are dreaming of. Unfortunately, one privilege can turn into a major disadvantage if it causes more problems than rewards. If you don’t want to bite the risks of a credit card, there are other alternatives that you can try. While these alternatives are not perfect, they are – by far – better than a credit card that will drown you in a pool of debt.
E-wallets or electronic wallets are the modern representation of what technology can do for finance. If you have a smartphone, you can download an e-wallet app and start sending funds to your friends and relatives. You can also use e-wallets to pay for various services and products. With e-wallets, you don’t need to bring your cards physically. However, you’re still at the mercy of the company. If the e-wallet platform breaks down, you won’t be able to use its service.
Many people have been using gift cards for decades. And over time, companies are changing gift cards policies to match the spending capabilities of everyone. Gift cards are convenient, and they allow you to get perks, rewards, and incentives from time to time. If you’re tightening your budget, you can use gift cards for your purchases. They can even function as giveaways in certain events. The only downside with gift cards is that they can’t be reloaded. Once you’ve used up a gift card, they’re potentially useless. A reliable gift card strategy is to collect as many as you can within a month. It’s like a modern treasure hunt because excellent gift cards can be difficult to spot!
The charge card is the distant cousin of the credit card. There is almost no distinction because you can use charge cards in the same way you’d use credit cards. What is the difference then? Well, credit cards are revolving debt instruments. You have a choice not to pay your balance in full (bad idea!). Charge cards, however, don’t allow this. You really need to pay the balance after every billing cycle. If you don’t, the charge card provider will hound you with collectors and legal pursuits. Also, you need a favorable credit score before applying for a charge card.
Even though a credit card is appealing enough, make sure that it doesn’t have an outrageous interest rate. Read the fine print before applying so that you won’t have regrets later on. More importantly, you should be aware of credit card new and economic trends. This way, you’ll be a more responsible card holder.