Last Updated on
There are many things to consider when you are applying for a credit card. The first and probably the most important thing are to understand the terms and conditions of the card you are applying for. You should read the disclosure chart that is included with every solicitation. This is usually found on the reverse side of the offer. This will include the purchase interest rate (APR), any annual fees, minimum finance charge, transaction fees, and late fees.
There are three main types of cards that companies offer. They are: secured, reward or rebate, and regular. Knowing which kind you want will help you decide which one to apply for.
You should also know how you intend to use the card. The big thing to keep in mind is if you plan on carrying a balance on the card. For those that are going to pay the balance in full every month the APR does not matter. Those people should lean more on cards that have excellent reward programs such as cash back on purchases. For those that intend to carry a balance then obviously the APR becomes crucial. You will want to get the lowest rate possible regardless of any incentives available. Only those people with stellar credit ratings will qualify for a low APR so you should also find out what your score is before you apply.
Keeping these things in mind while you research your next credit card will go a long way in helping you find the best one.