Credit cards are increasingly becoming the way everyone lives their lives today. Most financial experts have even gone as far as to call credit cards the cornerstone of the American economy. As such, they have become essential to the day-to-day spending of most Americans.

With the fact that credit cards are so common, one may think that even the average person has a wealth of credit card knowledge. However, that may not always be the case. In fact, many credit card holders may not fully understand the terms and conditions of their own cards. Therefore, it is important to educate yourself before you decide to get a credit card.

Are there questions that should be asked about credit cards before you consider taking one? Of course, there are. In this article, we will discuss some of those questions and tell you where you can find the answers you need. Keep reading below to make sure you have the proper knowledge before opening a credit card account. 

Example for a credit card

1. What Is The Difference Between A Credit Card And A Debit Card?

First of all, do you the difference between a credit card and a debit card? The one that banks offer when opening an account is usually the debit card. With a debit card, you can only use what you have in your account.

Basically, you have to deposit to be able to spend from your debit card. When it comes to credit cards, however, you don’t have to put down some money for you to be able to spend. You can spend from the card if your credit limit allows and make payments later. Credit cards are, in effect, a type of lending. 

2. What Kind Of Limit Do I Have?

Now that you know the difference between a credit card and a debit card, you now need to know the limit of your credit card. Your credit limit is the amount you are allowed to charge to your card at a time before making payments.

When you’re applying for a credit card, ensure that you have a strong credit score. With a good score, your limit is much more favorable than when you have a poor score. The better your credit score, the better your limit is on your credit card. 

3. How Many Cards Should One Have?

How many cards can or should one have? That’s a question that only you can answer considering your own needs. But basically, you need credit cards that are favorable to your lifestyle. It is advisable to only open one new credit card at a time. Then, if you decide you need another down the road, you can apply for a second or third at that time. 

Also, remember that with one credit card, chances of building your credit score are quite limited. Just ensure that you can make payments on each of them or else your credit score will be negatively affected.

4. What Is Hidden Inside The Paperwork?

There is a lot hidden in the fine print when you’re being issued that card. For example, the issuer may be able to change your APR ah without informing you. That is just one of the pickles that you have to deal with when it comes to credit cards. All you can do is to ensure you thoroughly read through the paperwork before committing.

5. What Are The Rewards Involved?

The last thing you should always ensure to get answers for is the reward program of the card you intend to take. Does it offer cashback, do they have reward points; these are some of the questions you should answer beforehand. If the perks fit your criteria, then go ahead and commit.


When the time comes that you have to settle on a credit card, ensure that you have done proper research. You need to find out as much as humanly possible before committing. Thus, ensure all these questions are answered. If you want to get clear answers to these questions, it is best to speak with your respective bank directly.