5 Things to Check Before You Apply for a Credit Card

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5 Things to Check Before You Apply for a Credit Card

Credit card issuers are obliged by law to disclose specific terms, such as fees and interest rates to the buyer

Monday December 30, 2019 3:31 PM, ummid.com News Network

Best Credit Card

Getting a credit card may seem like a significant achievement in life. Using it, you can manage your finances and regular expenses easily. Plus, there are several benefits of having a credit card as well.

You might be responsible enough to handle the credit card and already have a sense of how credit cards work. However, there are certain things you should know before applying for a credit card, such as:

Your Eligibility

If you have ever borrowed a loan from any bank, then you must have a credit score. The banks that issue you a credit card need an assurance that you are trustworthy and earn enough to repay the credit card bills on time. They check your credit history to determine whether to give you a credit card or not.

In general, if you have a credit score of 750 or above, then you don’t have to worry about the rejection of your application. So, it is essential to check if you are eligible for a credit card before you apply for it.

Card Fees, if Any

Credit card issuers are obliged by law to disclose specific terms, such as fees and interest rates to the buyer. Some banks may charge you annual fees for using a credit card, while others don’t.

Late payment fees, interest rates, foreign transaction fees and annual fees are some of the things that you should be aware of before you apply for the credit card.

Rewards and Cashback

Many credit card issuers tie-ups with diverse businesses to attract new consumers. If you are foody, then you may find a credit card that has tied up with some food company more attractive. Similarly, if you have an interest in cars, then you should go for credit cards that come with rewards on a car purchase.
So, check for the cashback benefits you get before you apply for a credit card.

Repercussions, If You Don’t Pay Your Bills on Time

There are repercussions to everything if you don’t deliver things on time. The same goes for credit cards also. Before you apply for the credit card, make sure to get aware of the penalties you might have to deal with if you don’t pay credit card bills timely.

Given below are certain things that may happen if you don’t pay your credit card bills on time:

• You have to pay interest on the money you owed, which means you’re going to end up paying more than you spent using your credit card.
• Not compensating your bills can lead to a reduced credit score and may hurt your chances of more credit cards in the future.

Bank's Reputation

This is an important thing to consider before you apply for a credit card. Do the background check on the bank. Some banks offer credit cards at a lower fee to attract buyers. A bank’s reputation also matters in the sense that you can get reliable customer services as and when required while using your credit card.

Make sure you don't fall into any credit card-related trap by making a well-informed decision. Consider the things mentioned above and even take advice from the professionals before you apply for a credit card. Many reputable banks, such as Axis Bank, provide you with safe and secure credit cards. Make sure you check their terms and conditions before you apply for a credit card. The right choice of a credit card will help you pay for things in an easy and worry-free way.

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