Credit cards are a useful tool that makes our life easier and reduces financial stress. You should get a credit card as per your situation and spending habits. Thus you get the most out of your experience. A credit card provides you with access to a personal line of credit to buy your favorite goods and services. There are various types of credit cards available out there. But not every card will be a perfect fit for you.
When banks try to convince their customers with maximum benefits and attractive offers, you must be aware of the fine print linked with a credit card. If you use them properly, credit cards can be an excellent financial instrument. Though many people make mistakes when choosing a credit card, it results in debt or damage to their finances.
So are you looking to apply for a credit card? If so then there are a lot of things that you need to consider before choosing a suitable credit card for you. Here in this post, we will discuss 6 basic questions that you need to ask yourself before applying for a credit card. Such questions are;
Why am I opting for a credit card? What will I get from it?
While you are applying for a credit card, the first thing that should come to your mind is why you need a credit card and how you will use it. Usually, credit cards have different purposes. For example, you can use it to buy households. You can get great reward programs with an airline, hotel, or online travel agent. You can do a lot of online shopping with a credit card. You must choose a credit card according to your spending pattern and append categories.
What are the interest and other charges on the card?
The next question arises about the interest charges and other fees related to credit cards. A credit card is an unsecured loan. You don’t require any security to get a credit card. You can get a credit card as per your income and credit score. However, it results in higher interest rates and a lot of other charges.
You need to pay the joining fee, late fee, annual fee, cash withdrawal fee, and any other fees linked with a credit card. These charges are not fixed and depend on the specific amount you utilize on your credit. So the more you will use the credit card, the more will be the charges. Therefore, having a clear idea about how much the credit card will cost is vital when you are choosing a credit card.
Can you repay your balance each month?
The next concern is will you be able to pay off your balance every month? If you don’t want to pay your card off in full each month, then you should get a low-interest card such as the VISA PLATINUM CARD.
But if you decide to pay your card off in an eerie month, the APR is less vital. So, you can focus on other features like earning points with a VISA PLATINUM REWARDS CARD.
Do you wish to clear debt with your card?
If you are looking for a low-interest card, then a VISA PLATINUM CARD will be your best choice. Before transferring your balance, there are a few things that you need to consider. Such points are;
Is there a fee for transferring the money and can you afford it right now?
Are your other credit cards capable of transferring to the new card?
In such conditions, you can use Canara bank credit card EMI calculator to get an overall idea.
Are you desirous of earning rewards?
If you love to collect points as you spend, then you must have a VISA PLATINUM REWARDS CARD. It means that you can earn points with each purchase. Besides, you will have a great low APR. Before signing up for a rewards credit card, consider the following things;
Check whether your card has a list of qualifying purchases and make sure your frequent expenses fit into the list.
Make sure your points won’t get expired before you redeem them.
Make sure to get a simple card so you get the most out of it.
Are you just starting your credit journey?
It is a vital point of concern before applying for a credit card. Maybe you have never wanted a credit account till now. In any case, everyone needs to build credit somewhere and a VISA STARTER CARD is appropriate for that. Before choosing a credit card, you need to consider a few things;
Search for a credit card with no annual fee or hidden charges.
Starter cards may have a slightly higher interest rate.
When you get your next credit card, try to keep your first card open. It helps to boost your credit score.
So, these are the basic ways that you can follow to get a credit card. Just before applying for a credit card make sure to ask yourself these six questions to yourself and get your preferred credit card.