Almost every household owns at least one credit card. And it’s little wonder why: credit cards are a powerful financial tool with great benefits. Whether you want to apply for the first time or add another card to your collection, it is essential to do some homework. The following factors will help you prepare to apply for a credit card.
Understand the Benefits
One of the greatest benefits cards offer is convenience. If you need money quickly, cards allows you access to more funds than the bills you carry in your wallet. When your car breaks down or unexpected health costs come up, you’ll be prepared.
A credit card can help you budget expenses. Your monthly statement will itemize the different purchases you made. A quick glance at the statement will show how your money has been spent.
When you apply, you have a chance to improve your credit score. After you receive the card and start using it, you leave a trail. This credit history shows your spending habits and ability to pay back your debts. Having a good credit score can help you secure a loan in the future.
Another benefit when you apply is that it offers theft protection. If you lose cash, there are very few ways to recover the money. However, if your credit card is lost or stolen, you can report it. The issuer will investigate the fraud and issue you a new card.
Know what to Look For
If you think there are an overwhelming number of options available, you are right! There is an offer for almost everyone today. Finding one that suits your lifestyle is key to making the most of your card. There are a number of points to consider before you apply.
First, check out the annual percentage rate (APR). This measures the cost of credit and is written as a yearly interest rate. If you plan to carry a balance from month to month, you may want to get a card with a low interest rate. Some offer low introductory rates. Be sure to check what the interest rate will be after this initial period. You’ll want to have an APR that will work well for you in the long term.
Next, look into the attached fees. Some cards have an annual fee. Many include other finance charges. Read the fine print to help you understand what is all involved with the card. These fees may or may not weigh into your decision, but it is important to understand them.
You will also want to consider any rewards included. Many cards come with cashback rewards, travel benefits, or other award options. If you have good credit, this is a great way to make the most of your offer.
It has never been easier to apply. You can do so online in only a few minutes. When filling out an application, be prepared to give basic personal and financial information. You may be asked questions regarding your monthly income, savings account, living situation, and employment status.
Credit cards offer excellent benefits and rewards. So what are you waiting for? Apply today to enjoy this powerful financial resource.