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Top Tips Any Person Should Know Before They Apply for Any Credit Card

27 March 2013 2 Comments

ccCredit cards are the main form of payment in today’s society so everyone gets one at some point or another. But, because the credit card you choose can have a big impact on your financial future, it is important to not simply go into the process blindly, choosing the first credit card you see and not doing your research. Although credit cards all operate on the same principle, there can be a great deal of variation between those offered by different companies so there are certain things that any person should know before they apply for a credit card, no matter which company is offering the credit card. Here are the top tips to know before starting the application process.

Interest Rates

One of the key differences that you will find between credit cards is the interest rates you offer. Of course, you want to find a credit card that has a lower interest rate as if you are late on paying a bill on a card with high interest, your debt could start adding up fast. You should know, however, that while some companies will offer an amazing low interest rate, in some cases it will be only for a certain amount of time. They do this to bring in customers but to you the client, it means that when looking at the interest rate being offered to you, don’t simply look at the rate. Be sure to look at how long that rate applies for as well and what rate you will be paying afterwards. This can save you from potential headaches and debt in the future.

Acceptance

One of the most important tips a person should know before applying for a credit card is to take a look at where the card will be accepted. After all, there is no point to applying for a credit card that you will not be able to use. This is especially important for people who travel to other countries frequently as some credit cards are more widely accepted than others. Even if you will remain within the United States, you should still check where your credit card will be accepted, although you are less likely to have problems than a traveler is. Being able to use your card is important because otherwise you could find yourself stranded while on vacation or simply suffering the embarrassment of having to put items back when at a store.

Rewards Programs

When looking at various credit cards it is important to keep in mind that some will offer various rewards programs. While for some people these programs are not a huge advantage, they are generally at least a good idea to look into, especially if you travel frequently or frequently make large purchases. Different programs will work in different ways so in addition to simply asking the potential credit card company what rewards they offer, be sure to ask how the program itself works as well. Some will simply give you a discount on purchases, while others will give you cash back when used at certain locations and others will have you accumulate points in order to earn rewards such as flights or hotel stays. You should know what type of rewards will be the most beneficial to you.

First Card

If you are applying for your first credit card and you have no other credit history, there are several tips you should know before applying. The most important one is to remember that some companies will deny you if you have no credit and any rejection will count against your credit score. Because of this, it is important that if you are applying for your first credit card, you apply for a secured one that is easy to be approved for. By getting your first credit card and making all your payments on time, your credit score will improve and this will allow you to apply for other credit cards you may want, such as those with rewards programs, without fear of rejection.

2 Comments »

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