Things to Know Before Applying for a Credit Card

It is no secret a lot of people love go on shopping sprees and using their credit card. Besides, there are a lot of benefits in having one since you don’t have to pay in cash and you can pay for some items in an installment basis. There are a lot more things to know about a credit card though. There is no reason to shop until you drop because you would need to pay for those things eventually. A credit card is basically a loan. Here are a few things you must keep in mind before applying for one:

Avoid Paying Late

When you pay on time, you can improve bad credit score. However, paying late will do the exact opposite as your credit score will take a big hit. You may need to do a credit score check after paying late. Furthermore, the interest rate is going to increase since you are going to have to deal with paying penalty APRs. When you pay late, the amount will just pile up and it will only be a matter of time before you need to apply for loans for very bad credit. When you have a bad credit score, you are going to have a difficult time applying for a credit card or a loan.

Credit Card Fees are Avoidable

Most pre-approved credit cards and fair credit instant approval cards won’t make you pay for fees. In fact, you are going to get the credit card after filling up a simple form. Yes, it is as easy as that. Also, you won’t need to pay penalties if you pay on time so better make a reminder on your phone so you won’t forget the due dates. Furthermore, there is no need to pay the foreign transaction fees if you are not going to use the credit card outside of your country. Thus, if you are going to travel, it would be better to use cash so you won’t have to pay foreign transaction fees.

Best Credit Cards aren’t for Beginners

In case you don’t know, the fair credit instant approval cards are not for those who are trying to get their first credit card. It is for those who have been working for quite a long time. Thus, you can’t expect to get a good credit card when you are just a student. You will most likely get a credit card when you make a cash deposit. After that, your credit limit will most likely be your cash deposit. Yes, you can’t blame credit card companies for doing that as they have no assurances that you will pay the credit card bills.

Check Out Fees Before Applying

There is no doubt you will need to pay a lot of fees before applying for a credit card. That is when you can do canvassing among various credit card companies to see which one offers the least number of fees. They must charge fees or else the credit card company won’t get any income out of it. Just like we previously stated, all the fees are avoidable but the interest rates are not. Some well-known credit card companies can afford to have low interest rates so choose wisely.

Avoid Being Close to the Credit Limit

When you have a credit limit, that does not mean you can always get close to it. It would be advisable to not get close to it because it can give you a bad credit score. You may end up wanting to do a credit score check more often than what you initially wanted. It would be better to not utilize your credit limit so better not use your credit card too much. For example, when your credit limit is $1000 and you have a balance of $800 then your credit score will take a hit.

The Rewards Programs

When applying for pre-approved credit cards, you’re going to notice that you are going to get offered lots of rewards. You are going to wonder where the bank have the budget to offer all those things. Of course, it came from the merchants.

Needing Income Information

The credit card company will most likely ask for your income information. They would need this so they would know how you will pay your credit card bills. Giving false information about your income will most likely lead to getting loans for bad credit score.

Remember, applying for a credit card is not something you can take for granted. It could be something that can ruin your reputation if you are not too careful. You must be sure you have the financial capabilities to pay the credit card bills when they arrive at your home. It would not make sense to apply for a credit card if you don’t have a job or nobody is supporting you financially.