The Top Ten Things To Do Before You Apply For A Credit Card
By Mario Churchill
Credit cards are convenient and safe to carry. They have their own advantages and disadvantages however, and these have to be weighed before you make any purchases using your card. There are several rules you will need to follow before you even apply for a card, and these include the following.
1.Keep only, at most, two cards. This will allow you to have back up if one card does not work.
2.If you think that a new card has better incentives than the card or cards that you currently hold, wait until you can replace one of your cards before applying for a new one.
3.Check with the card company if you can have your annual fees waived. Some annual fees can be expensive, draining your wallet further.
4.If you are applying for the card online, check if the card company server is secure. You can check this by looking at the status bar of your web browser. If you see a padlock icon, this means that your information is relatively safe from hackers.
5.If you can find reports on the card company’s track record, see if they have had any major cases of identity theft. Such records should be for public use, and they can tell you how secure the card company’s resources are.
6.Determine whether you are availing of the card because you want to spend conveniently, or because you want to avail of incentives. Some card companies offer cash back guarantees on as much as one percent of your total purchases using your card. Other card companies can translate your accumulated points into airline miles. Yet other card companies can offer you gifts the more you spend using your card. In all these cases, you may be forced into spending more.
7.Check your savings account and assess if you will be able to pay your card bills in full. card companies charge high interest on unpaid debt, and, once these debts accumulate, they can force you into bankruptcy.
8.Make sure that the card company has twenty four hour customer support. This will allow you to immediately report stolen or lost cards, or contest any parts of your billing statement that should not be credited to you.
9.Study
your spending habits. Are you living beyond your means, or do you save more than you spend? Are your earnings replenishing your savings, or do you spend everything that you earn? A card should make spending convenient for you, but it can also give the illusion that you are spending nothing. If you are a natural spender, acquire some discipline in your purchasing habits before applying for a card.
10.Be prepared to disclose all information, including anything that pertains to cards that you may have held in the past. This can help the card company in assessing your standing. If you are in good standing, then your card, once approved, will have a high limit.
A card is convenient to have, and easy to use. However, it can turn big spenders into even bigger spenders, so you have to know your habits and inclinations in great detail before making any plunge. Only then can you use your card wisely, and thus enjoy the benefits it offers.
Mario Churchill is a freelance author and has written many articles on various subjects. If you looking to apply for card rewards offers or to just apply for a card online checkout his w
