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Barely
a day goes by without getting an offer to apply for a credit
card, either by the traditional mail service or online. If
this is something you are considering doing, there are
several key issues that you will need to understand before
you decide what card offer is right for you. All card offers
will offer benefits. Finding the one that fits your needs is
the key. Let's discuss a few of the things you should be
aware of before you do any applying.
What Do You Need The Card For?
This is the first and most important question you should ask
yourself. Your answer will help to decide just what type of
card and what incentives will work best for your needs.
For example, if it is for business use, look for a card that
offers a cash-back for business purchases or membership to a
discount buying club. Most companies will offer a low
introductory rate for a specified amount of time but you
need to know what it jumps to when that said time has
expired. It may work best for your business if you find a
long-term, more moderate interest rate than be stuck
changing cards every few months to keep your interest in
check.
If the card is for personal use, decide why and for what do
you really need it for. If you plan on using it instead of
cash and checks throughout the month but plan to pay it off
each month, know what the card's grace period is and what
happens if you miss it. Pick a card that offers reward
points even if you don't carry a monthly balance. This can
be a great way to rack up the frequent flyer miles as long
as you're disciplined enough to use it this way.
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Credit Card Information
»Credit Card
Information
»Types
of Credit Cards I
»Types
of Credit Cards II
»Various
Features
»APR
Explained
»Choosing
a Credit Card
»Credit History
»What
is a Credit Report
»Credit
Card Numbers
»Expiration
Date
»Application
Process
What to do When...
»Your
Credit Card is Stolen
»Your
Application was rejected
»You
Have no Credit History
»You have Credit
Card Debt
»You have to pay your bill
Business Owners Section
»How
Credit Cards are Processed
»Accepting
payments online
»Accepting
payments offline
»Protecting
Your Business From Fraud |
Know The Interest Rate
Many card companies will offer an initial interest rate that
is quite low, sometimes even 0%, for a designated period of
time. This rate usually applies to both transferred balances
and new purchases. What you need to know is what happens
after the introductory phase has ended. Will the interest
then skyrocket? Will the interest rate be more moderate as
long as you have a good payment history? Look for hidden
costs such as an annual fee or a cash advance fee. These are
important to know if you plan on using your card
effectively.
Incentives
Many cards also offer a whole list of incentives with their
application request. Although many of these are nice,
usually you have to use your card a great deal to get them.
This can become a kind of trap. You know, buy more to save
more. If you're going to use your card anyway, then you
might as well have something to show for it. Look for cards
that offer incentives that interest you and you would
actually use.♦
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