Tips On How to Get a Credit Card and its Various Benefits
In this generation where everyone seems to be paying through credit and debit cards, it only makes sense that you make yourself familiar on how to get a credit card.
There are different credit cards offered by various banks that offer different privileges and at different interest rates. Hence you must get a credit card that best suits your use.
1. Know Which Card Best Suits Your Use
Depending on your daily needs, the card you use might differ. Therefore you need to find out what type of credit card you’re looking for.
If you get a credit card just to make payments for normal shopping and for paying bills, a standard credit card would do.
You aren’t required to maintain a security deposit to prove you can pay off any debts.
There are rewards credit cards that offer reward points for any transaction made with the card.
This is suitable for people who keep using their cards for all kinds of purchasing and payments since it offers you rewards after a set limit is reached.
Business credit cards come with special bonuses that might appeal to a business owners.
2. Look at the Available Interest Rates and Benefits
Many banks tend to get a credit card to you at a very good rate but usually have loads of hidden charges that you aren’t aware off until it’s time for payment.
Hence, when you’re about get a credit card, make sure to research about the different interest rates and charges that come with each card.
Also, look at the benefits that come with the card. This is important since otherwise you might end up losing out on numerous benefits that you aren’t aware of.
Annual Rate, Annual Percentage Rate, Grace Period, Late fees, over-the-limit and Account set-up fees. These are all factors that you should compare between the different banks before you get a credit card.
3. Know your Credit Score Before You get a Credit Card
Check here on How To Improve Your Credit Score !
Your credit score is a score on a scale from 300 to 900, with 900 being the best. This number is used to express an individual’s credit worthiness or how likely you are to repay a debt in case you do get a credit card.
650 is an “average” credit score, while anything above 700 is considered great and anything below 620 is considered poor. Your credit score will affect your ability to get a credit card. Read more about how to improve your Credit Score here!
In case your credit score isn’t high enough take necessary steps to improve it even if the process is slow.
4. Check out Reviews of Previous Customers of the Banks you are Looking At
To know the genuine experience of having a card from a particular bank, its best to check out the user reviews. This is very important when you get a credit card.
User reviews tend to usually give the whole side to the story. Thus when you get your credit card, you’ll know exactly what you’re getting yourself into and what you should be expecting from them.
Make sure to read multiple reviews for each bank to truly get a complete idea of the services, pros and cons to getting a card from them.
5. Be Aware of When a Payment is Due
Avoid any fines and additional unwanted payments. So always make that before you get a credit card you are completely aware of when payments are due.
Some get a credit card that requires you to pay in full others allow payment bi-weekly and some are due monthly. Avoiding fines is an important aspect when it comes to maintaining a good credit report.
6. Locate all the Information Needed to Apply
Find what type of information to gather such as driver’s license number, social security number, work phone numbers, previous residence and referrals.
Some credit cards only ask for a minimal amount of information such as a name and identification number.
But others can have a more extensive application that would require more information from you.
7. Check that all The Information you Supply is Accurate
Many people do not reflect over what they are filling in and submit their credit card application without checking the information that they have filled in.
Always make sure that the details you enter aren’t wrong since you face the possibility of having your card rejected. This is a very common reason for why many people get their application rejected.
The application to get a credit card isn’t much of a hassle and only involves filling out an application with the required information accurately and with no errors from the respective banks.
Having a credit card is time saving and can also be rewarding if used to its full potential in the right way. Ensure that you never get a credit card for granted since this can then lead to a lot of problems along the way.
You can find me cooking up new ideas to keep myself occupied since I hate staying idle.
I also hope that one day I write something worth plagiarizing 🙂