You think you need a credit card. Think again. While credit card can help us especially if we do not have cash, it can be very destructive if you are unable to handle the urge to spend money. Here in Singapore, according to statistics released on April 22, 2014 by the Credit Bureau, the number of credit card membership dropped in the last 4 years. 

What does this tell us? Singaporeans are thinking of cutting their expenditure. This is bad for the credit industry. However, in the consumer side, this is a positive development. You should think hard before you get a credit card. Here are the things that you need to consider before getting a credit card:

• Check the terms: You have to check and read the terms. Do not ignore the terms or sign without reading it. You should check the terms especially those that are related to late payment and its charges. You should also consider the penalty rates and the interests.  

• Look for cards with grace period: It is crucial that you know how you will be billed. You should search for cards that offer grace period without giving interests. Do not forget to read about the terms included in grace period.
• Read disclosure and credit contract: It is imperative that you read the disclosure as well as the credit contract of the company before signing anything. You have to carefully read and review everything. Make sure that you know all relevant information.

If you still pursued despite everything, you should still be careful. When you have the card, be sure that you do not overspend or not be greedy. The first year may be cheap but expect that the succeeding years to be expensive.