Friday, 28 February 2014

Things To Consider Before Applying For A Credit Card?

Are you looking for a credit card that has better terms and conditions than your previous card? Maybe you want to look for better terms and conditions than what you have already have. You may see a credit card that attracts you with its lower interest rates, better perks and no annual fees.

You should do your homework as there are so many cards available, choose a card that matches your spending habits.

Are you someone who pays your credit card balance off every month? If you answered yes then you would benefit from a card that has no annual fees. Or are you someone who always leaves balances on your card? Then your priority would be a credit card with low interest rates.

It can be tempting to apply for a new credit card when the issuer is sending you constant offers. It would definitely be worth doing your homework as it may not be the best card for you. Before you apply for the credit card make sure to compare it with others of its kind. There are many websites that have or will compare these cards at a touch of a button and where you will also be able to search for reviews from other customers.

In order to make credit cards more appealing they tend to offer lower interest rates at the introductory period. However if you don't know how it works, your introductory period will expire and you will begin paying for regular APR's. Before signing on the dotted line make sure to inquire about how long the introductory period should last and what the regular APR is.

You should also ask the provider if your credit card is protected against card fraud. Ask how your issuer handles unauthorised credit card use. You may need to state the amount you have to pay in, it would be wise to ask your issuer if they monitor your usage and shut down your card when it raises suspicions of locations and usage.

Some issuers may use your transactions against you. They may asses your credit worthiness by reviewing your purchase records which may effect your credit limit or APR. If you feel this is an invasion of privacy you will need to inquire with your issuer if they follow this.

You should find out in advance what will happen if you fall behind on your payments, Will you loose points or benefits or will you have extremely high penalty fees? Ask at what point they send your account to a collection agency, or when is the account considered charged off.

1 comment:

  1. your first credit card is very important, you need to be really careful when you choose it , because since its the first card you might not be really aware of how credit cards works, so I recommended before you applying is to read more article and learn more about the different kind of cards and which kind suit your financial plan more, you can use also some of the comparing tools online such as , which is allows you to compare the cards that you interested in and choose the most suitable for you