Each and every day we hear about the latest and best credit cards out there, we will see adverts on the television, receive emails and also get letters through the post. We are sometimes pre-approved for credit cards with out even applying. The market is now so competitive between card companies, this competitiveness works in favour of us, the consumers. The consumers benefit from the increasing incentives offered with each card. It is fairly straight forward to get a credit card these days, but before you apply for your next credit card you need to consider some key points; using your credit card wisely, choosing the card that is going to work best for you such as interest free credit cards or one with incentives etc, you should always be the one benefitting and not the companies. These are simple tips, below are 3 great pieces of advice before applying for your next card.
Be in control
When you are choosing the right credit card for you it is always best to be proactive rather than reactive. You will always get plenty of offers through the post, these are a good place to look at what there is available but it is definitely not your only option. You should definitely not only rely on your post to find the best credit card for you.
Good places to look for information about the credit cards on offer are online, finance publications and in newspapers. You can of course contact the banks directly to talk through the options that are open to you. There are plenty of comparison sites online that you can look at when you are comparing the cards on offer. You can also find places where people (just like you) have reviewed their cards; the rates, service and benefits.
Understand the terms, fees and APRs
It is key that you understand all of the terms that are related to the card that you will choose. You can find this, it’s usually all the small print, on any leaflet or on a link if you are looking at the card online. Here in the terms you will find useful information such as the interest rate on purchases you make, the annual fees, the finance charges, transactions fees and very important, the late charge fees.
Understand the credit card features and how they are relevant for you
You need to decide what type of rewards you prefer; travel rewards or cash rebates? Better rewards or lower rates? Here are some great questions to ask yourself before choosing your card:
– Which type of card do I qualify for? Will you succeed in applying for a secured, regular and reward or a rebate card?
– How will I use y card? Will you always owe money on your card or will you clear the balance in full each month? The reason for this question is to find out if interest rates will affect your decision – if you pay your balance off in full each month then you don’t need to worry as much about the interest rates on offer.
– Which features will benefit me most? If you travel a lot then obviously you should look for travel rewards. If not, then look at cards that offer cash rebates. Always remember that these cards usually come with an annual charge, take a look at the charge and weigh up the benefits for you.