Nowadays it has become the biggest necessity that at some point in our lives we ought to borrow money. The online shopping convenience allows users to own a credit card account plus it turns out to be an ultimate time saver. Whether you want to buy things online or a holiday package or simply to pay bills, getting a credit card is very easy these days. However, before applying you need to consider a few key points to choosing the best credit card as per your requirements.
When searching online you will come across tons of credit card companies so you just need to find the one that suits your needs. To find the right card depends upon the purpose of use, probably you need to answer yourself why you need a credit card. Whether you are applying for the first time or use it for business or pleasure or want to use it overseas. All these factors will help you compare the credit card offered by different companies online. Moreover, your choice of credit card widely depends upon whether you will pay off your debt monthly or spread your repayment over a period of time.
3 Things to Consider While Applying For a Credit Card.
#1. Checklist to consider when choosing the right credit card and a company that’s offering it.
Borrowing on a credit card can definitely bring in easy and quick cash when buying expensive things. There are many factors that you must remember when you are finding the right credit card company. So, you must look through this checklist:
- Look for cheap APR (Annual Percentage Rate)– The cost of borrowing money is APR cost that you have to pay if you don’t pay off monthly. Compare APR, fees, charges, and incentives to select the cheapest.
- Find out the minimum repayment amount. If you fail to pay the full amount of borrowed money each month, you can repay a minimum amount. This is usually 3% of the balance.
- Must know how much is the annual fee. Some credit card issuers charge a fee per year. This fee is then added to the due balance. If you can’t repay in full, you will be charged interest on the fee and on your spending.
- Carefully check your agreement with credit card issuer about other charges. Some cards charge you for exceeding the credit limit, or for using it overseas or paying after the due date.
- The introductory interest fees are usually on 0% or very low rate of interest. This introductory 0% interest rate increases up to 30% after a certain period of time such as maybe 6 months. You must consider the time period to get the best out of this 0% rate offer. While selecting the card compare for highest period of introductory rate offer.
- You get loyalty points or rewards depending upon your items and how much spending you make. Carefully check how and where you will get rewards or points.
- Find out the terms and conditions on the balance transfer. Some companies offer 0% charge on moving your debt from one card to another but for a very limited period of time. Go for good introductory offers that last longer.
- Some card issuers refund your money, therefore look for options in the agreement. Check if you qualify for the cash back.
- You can get various benefits such as air points, free travel insurance or a concierge service. Check beforehand, if these are really worthwhile.
#2. Ways to apply for a credit card
Thinking about applying for a credit card, you require knowing various best ways to apply for a credit card.
- The most common way to apply is via online. It requires you to fill the form through the internet and ready to send and sign extra papers through e-mail.
- Another simple way is to apply by post. Get ready to fill in a hard copy of a form manually and get that from the bank that’s offering the card.
- In some cases, you can get help from in-branch banks with the application. So, get ready to make an appointment. In many other cases, you can even apply by phone.
The banks or institutions must provide you pre-contract credit information. They will ask you to sign a credit agreement either on paper or electronically. The credit card companies are liable to explain adequately the key terms and conditions. You must ask questions if in doubts. Read carefully the FAQs on the website and ask the lender if something you don’t understand.
Be careful when you fill in the application form for a credit card. Make sure to provide correct information. If you are not sure about anything ask credit card providers for help. Any false information provided will lead to fraudulence.
#3. Further key information you need to know
1) As a credit cardholder, you can apply for an additional credit card. There is no restriction on the number of credit cards one should hold. The company that invented risk score, myFICO.com, recommends an average consumer can have nine credit cards.
2) In order to increase your chances of getting a credit card, your name must appear on the electoral register with your current address. Moreover, companies want to know how much credit you have available, so cancel all unused cards. Your previous repayment history and credit score or any previous financial problems will make a big difference to qualify for getting a card.
3) In case your application is refused due to low credit score, you can always ask the reason for refusal. The vendors cannot refuse your application because of discrimination in race, religion, sex, disability or where you live. You have all the rights to get a credit card if you prove your eligibility.
4) Learn about how credit card companies decide about accepting your application. Visit credit to know if you will be given credit.
There is no secret to applying for credit card wisely, just compare the websites for a low-fee account and maximum reward programs.
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