Things To Consider Before Applying For A Credit Card

A must read for new credit card applicants

It is getting more and more difficult to get through your daily activities these days without having to use your charge card at least once, or if not a card per se, but a debit card with a card issuer logo on the front of it. Almost every single restaurant, retailer, and shop have credit card machines. There are also some transactions that require a card, such as hotel or airline reservations, online transactions, and placing orders over the phone. Owning a credit card can be a very rewarding experience for you, so here are a few things to consider before adding another credit account to your wallet.

The term too much of a good thing can easily be applied to cards. A lot of consumers carry a variety of account types in their wallets, such as; low interest charge cards, business cards, balance transfer cards, an emergency charge card perhaps, etc. The problem is that there arent really too many reasons why an individual would need any more than one to two accounts. By owning a higher number of accounts you run the risk of turning your debt into an unmanageable amount.

Just because you are getting sent four or five card offers in the mail every day doesnt mean that you are ready to start adding more accounts to your wallet. It is known that a lot of credit card issuers will actually target consumers with histories of racking up balances, so that they can rake in on the interest. It is always best to keep your credit card spending within reasonable amounts, especially if your planning on carrying a balance. It should always remain very important that you keep as much of your own money in your wallet as possible, and try not to pay too much of it in pure interest.

It is essential that you gain an understanding of your charge card companies introductory or teaser rate. A lot of card issuers will offer for example a six month 0% APR and not hit you with any interest until the end of that six-month window. The introductory period is not necessarily going to be interest free and the length of time of each offer varies with each account. These kinds of programs can be great for consumers who pay their balance off in full, especially on balance transfer cards. Unfortunately those who do not pay in full will be hit with the all of the interest accrued after the intro period is over. Be sure to check the terms and conditions closely for your card issuers rules on late payments. Some companies will end your interest free period as a penalty for late payments. Introductory rates are meant to be a very enticing marketing tool, and they are proving to be effective. Take full advantage of them and they can be great. Do not and they can turn into a double-edged sword.

Obviously the interest rate is going to be a heavy determining factor when you are considering any kind of new credit card account. Low interest cards are becoming more and more sought after these days, but too many people get hung up on APR in regards to their charge card search. Without question the interest rate is important, but it is definitely the only thing that matters. If you can be resolute in paying off your balance in full every month, then you shouldnt have to worry about APR, except of course in emergency situations. The average grace period for most credit card companies is twenty days before any interest is accumulated. This can be more or less depending on your card issuer. Always keep in mind that interest rates can always be adjusted, even with so called fixed rate charge cards.

Each card company has their own method of billing that you must get accustomed to. Some card companies will begin to apply interest to your purchases as soon as you make them. Most will offer some sort of grace period but that is something that you must know before filling out any kind of credit card application. Your monthly statement due date is also something to know, especially because some companies will send out there statements late in the billing cycle. Regardless of this, try to never miss a payment due date if possible. Late payments can lead to a number of difficulties with your credit card accounts. Your low interest credit card can see a rate hike if you are not being a responsible credit card owner. Owners of credit cards with rewards programs can have their reward points deducted or taken away completely as a result of payment difficulties. Most card issuers will work with you as long as you show that you are trying to be a responsible account holder.

The Terms and Conditions for each account is going to be the best place for perspective card shoppers to look. This is where you will find the best information regarding account fees and late payment penalties. Some credit cards require an annual fee for use, while most do not. It is not necessarily a bad deal to pay an annual membership fee, as these accounts tend to have some of the best rewards programs available.

by: Todd holliday 8402

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