Similar to any other banking product, getting a credit card is a serious commitment which you enter with the bank. Before requesting a credit card, you should carefully consider why you have decided to go for this option, and if this product fits your needs.

You should also be mindful of your own spending patterns and how the use of a card can affect your monthly budget. It is very easy to fall into the trap of overspending when you cannot see how many bank notes are coming out of your wallet.

A credit card allows you to ‘borrow money’ in an easy way. Naturally, since we don’t live in a fairy-tale, you will be required to pay your expenses back on a specific due date and according to specific terms and conditions that you agree to with the bank.

Make sure you read and really understand these terms and conditions. As we always say, ignorance is not an excuse!

Take the time to understand how your Credit Limit and Monthly Commitments work. Normally, a credit limit is the maximum amount of money you will be able to spend on a credit card. Before applying for a credit card, make sure that you’ll be able to meet your monthly commitments.

Repayments can be paid off completely on a pre-established day, or one can also pay back in fixed instalments subject to interest rates. When possible, try to pay more than the minimum amount of your credit balance. 

Interest Rates are a very important part of the equation. What interest rates will you be charged when using the card? If you pay your credit card bill in full every month, usually you will not pay any interest fees. If not, you will have to pay interest. Make sure you are fully aware of the interest rates in advance!

Then there are fees. Some cards charge fees such as an annual fee or a late payment fee. What fees are there tied to the product you are considering? Make sure you are aware of these fees before committing to a card. 

Furthermore, since a card is a live link to your money at the bank, they often come with security features to deter misuse. Familiarise yourself with such features and ask your bank what to do if your card gets lost or stolen.

Banks usually provide 24-hour assistance where lost or stolen cards can be reported. Moħħok hemm! Don’t leave your card lying around, even if the DJ is playing the most awesome song you and Martina absolutely love! Make sure you keep your card safe before hitting the dance floor!

Having said that, if your credit card is stolen, you will not be liable for any unauthorised payments that take place after you would have informed your bank. Still, be super careful! Misuse of your card can ultimately affect your credit history.

As good practice, you should get into the habit of checking your statements often so that you can spot any strange transactions immediately and report them to the bank.

For  a full check-list of best practice before getting a credit card and once you own one, check out the tips on the MFSA’s online consumer hub.

And once we’re here, let’s also talk a bit about Consumer Rights. What rights do I have as a consumer when dealing with a Bank? What can I do in case I receive an unsatisfactory service?

In case you are not satisfied with a bank’s service, you can submit a complaint to your service provider. Licensed banks are obliged to publish their Complaints Handling Policy on their websites. If you are not satisfied with the outcome of your complaint, you can appeal with the Office of the Arbiter for Financial Services.

Take the time to familiarise yourself with these policies and procedures as they may differ from one bank to another. 

So now you are ready to get yourself a shiny flexible friend to help you on your shopping adventures this season. 

All’s left to decide now is…

Mela, a scarf for Sarah,

Boxers for Sebastian, 

Socks for nanna…

Have you bought your Secret Santa yet?