What to Look for Before Applying for a Credit Card?
A credit card can make it easier for you to make some important purchases without paying for them in full right away. These days, you can apply for a credit card from your preferred card provider online, right from the comfort of your home. You can even check the credit card application status online.
But before you get to any of these points, you need to first take into consideration many important factors. That way, you can make an informed and smart decision about your credit card.
Here are some key things to look for before applying for a credit card.
1. The Credit Limit
Your credit limit is the maximum amount you can borrow on your credit card. Before you apply online for a credit card, you need to check your credit limit. Generally, a higher credit limit is good.
However, you need to keep in mind that it is not advisable to use your entire credit limit. Experts recommend keeping your credit utilization ratio to around 30% for a healthy credit score. So, look at the maximum credit limit you are eligible for.
2. The Interest Rate
If you pay your credit card bills on time, you need not pay any interest on the amount. However, if your bill remains unpaid past the due date, the interest charges come into play. Credit card interest rates are quite high, and can range from 2.5% to 3.5% per month.
So, if you are interested in getting a credit card, apply online after checking the interest rate on the card you are planning to get. You need to pay your dues on time to avoid interest and late payment charges.
3. The Grace Period
The grace period for a credit card starts at the end of the billing cycle and goes on till the next payment due date. This period can range from around 25 days to 55 days. During this period, there will be no interest charged. So, you can get the funds ready and pay the amount before the due date.
A longer grace period is generally better, since you will have more time to meet your dues. So, take a look at the grace period offered by the card before you apply for it.
4. The Fees and Charges
Credit cards also come with a variety of other fees and charges such as joining fee, annual fee, foreign transaction charges, cash advance charges and transfer fees. You need to check all these fees and charges before you apply online for a credit card.
5. The Rewards Offered
Lastly, credit cards also offer a number of rewards and benefits like cashbacks, credit card miles and reward points. You can redeem these points for specific benefits like unique experiences, travel and even on some gift products.
Once you check out the rewards offered by your preferred credit card, apply online for the same and submit the required paperwork.
Once you have applied for your credit card, you can check the credit card application status by online method to know when and if your application has been approved. This way, you can ensure that you receive your credit card on time. Also remember to factor in the above aspects before you choose a card to apply for.