Applying for a credit card is straightforward. Many people are able to key-in the required details online, submit the application and then wait for the provider to send their cards. However, credit card applications go beyond filling out biometric information. The choice of credit card you end up with can make or mar your financial outlook. You cannot afford to make these first-time credit card application mistakes.
Several Applications Over a Short Period of Time
If you have applied for several credit cards over a few days or even months, card issuers will be reluctant to approve the application. You need to ensure your credit card applications are properly spaced to increase your chances of securing approval and keep credit card debt down.
Going with The First Credit Card Option You Se
Going with the first card you see in a commercial or one that you are preapproved for isn’t the right approach to your application. Keep in mind that there are dozens of credit card providers in the market, with each one offering multiple credit cards. The most attractive sounding jingle doesn’t always equate to the best possible card. You need to look around for several options and several providers. Draw up a list of the best credit card options and go with one that ticks all the right boxes for you from a reputable provider.
Ignoring Card Terms and Conditions
Many people do not read terms and conditions generally. However, you can’t afford such liberties with your credit card application. Issuers are mandated by law to display all information concerning the card in the terms and conditions. The onus lies on you to read the information provided to find out about interest rate and fees to work out what the card will cost you.
Looking at Only Initial Benefits When Choosing a Card
Introductory interest rates, double rewards, signup rewards bonus, low or zero annual fees in the first year and many more are some of the offers used to lure in new customers. You could be walking into a financial problem if you don’t look beyond the first year. Such offers are provided with the hopes that you will be around for the second year where the providers often aim to recover any benefits. No matter how enticing the first year credit card perks sound, look at the second year offers before making a decision.
Allowing Your Situation to Push You Into Accepting Poor Terms
Generally, you would want your credit card to be low interest, with no annual fees. However, people with bad credit may not be able to get the best deals. If you are in this position, you are still under no obligation to accept poor terms. Regardless of your financial situation, you should be able to keep a lid on what qualifies as acceptable terms to you. If you are unable to find a credit card, consider other forms of borrowing.
Credit cards are useful when properly used. To reap the benefits and steer clear of the dangers, you need to avoid these mistakes.