Seven Things You Need To Know When You Apply For A Credit Card

With so many credit cards to choose from, deciding which one best suits your needs can be a bit daunting. What makes one offer better than the hundreds possibly thousands of others you've seen? Here are SEVEN factors you need to consider when looking to apply for a credit card:

#1. Do You intend to transfer a balance from another credit card?

If so, then you need to be looking for a card with a low APR rate on balance transfers or better still 0 APR credit card. APR (Annual Percentage Rate) is the cost of credit, expressed as a yearly interest rate. This is a fantastic way to save on interest and make bigger payment towards your principal sum. You must keep an eye on when the offer will end as normal rates will kick in.

#2. Do You intend to Make New and Large Purchases?

If so, then it is important to pay close attention to the APR rate for purchases. This is usually different to the one for balance transfers. You should also look at what kind of grace period different cards offer, so you don't end up paying interest on your purchases straight away.

Without a free period, a charge from the date you use your card or from the date each transaction is posted to your account can be imposed by the card issuer. If your card includes a free period, the issuer mails your bill at least 14 days before the due date so you'll have enough time to pay.

#3. Are You a Student?

If you are, then it is better to apply for a student credit card. The best action would be contact the bank where you have your student account before you do anything else.

#4. Do You Pay Off Balance Every Month?

If you have a lot of money or you only keep a credit card for emergencies, then you might just pay it all off each time you get the bill. You are in a position where you obviously don't need to worry about the interest rate much at all, since you won't be paying any interest.

#5. Which Reward Program Suits Your Needs?

You may wish to consider the card that offers you the best reward programs or frequent flyer points for your needs.

#6. Need Good Customer Service Support by the Issuing Bank?

This can be an critical factor especially in situations of lost card or a charge that you wish to dispute. If so then you need to choose a reputable bank that has friendly and helpful call center.

#7. Annual Charges of Extra fees?

Especially for low APR credit cards, many issuers charge annual membership or participation fees. Also, some issuers charge a fee if you exceed your credit limit, use the credit card to get a cash advance, make a late payment. Some charge a monthly fee whether or not you use the card. Thus this is definitely a factor to consider

To conclude, though there are plenty of offers of credit card deals and "pre-approved" credit card application forms available to you, it is important to take the time to shop around for the credit card that best suit your needs.