How To Choose and Apply for a Best Credit Card

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Holding your first credit card in hands is surely an exciting feeling, but when it comes to choosing a best credit card, you need to give extra attention towards it and should apply with complete care. In this article, you will get to know about how to choose the right credit card along with how you can successfully apply for a credit card, and what you need to do if your application gets rejected?

How To Choose a Perfect Credit Card-What Factors to Look Out For

When it comes to selecting or choosing a best credit card, it would not be wrong to say that it means digesting a lot of information as well as numbers. Moreover, this thing becomes much easier, if you completely know what parameters or factors to look for.

Below are the key parameters that you need to consider for choosing a best credit card:

Pay Attention on Annual Percentage Rate (APR)

APR basically gives you the information that how much your lender is charging from you for the credit. It usually includes your actual rate of interest and your annual or monthly fees. More to the point, the APR  completely depends on your purchase element which does not include your cost of the cash withdrawals as well as balance transfers.    

In addition to this, the way APR has been worked out is generally laid down in law, and it’s only the figures that the providers use in their advertisements. This is because, you can easily compare the different rates being offered by these providers.

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Moreover, the APR helps you with comparing the different credit cards, and the best part is that they vary a lot. Yes, different lenders provide you with different APR. One provider might offer you 13%, while other might give you 29% APR.

Furthermore, the lower the APR is the better it is for you, but you also need to look how much it will cost you. Well, this thing might be different depending on how you will use your card.

Look Out for Representative APR

There is no denying on the fact that what you usually see in real life is not you get always. Many banks or credit card providers consider your credit history so as to decide your interest rate. These providers generally advertise with the representative APR-the one that is being offered to most of the people. However, if you are having a poor credit history, you might be eligible for higher rate of interest.

Watch Out for the Fees

You should always compare the charges such as late payment fees, if you will exceed your credit limit, and last but not the least the returned payments. Compare different card providers to check their fee structure.

Check Introductory Offers

Plethora of banks these days come up with many lucrative offers so as to grab the attention of their customers. For example-the most common lucrative offer is to provide the 0% interest on things that you buy using the card or if you transfer your balance. This 0% introductory offer is one of the best ways to grab the eyeballs of many customers. So, instead of being trapped in such offers, do the through research before availing this offer.

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Keep an Eye on Balance Transfer Offers

Balance transfer simply means that you are moving your debt from one credit card to another card of yours. In order to lure you, banks or lenders offer plenty of amazing balance transfer offers. Once you avail such service, you might not realize that you need to pay a fee for it somewhere nearly around 3% of your balance. So, always compare first and do your proper research to know which bank is charging you more for availing the service of balance transfer.

Ask Yourself Do You Really Need the Benefits?

Many credit cards these days come with many features and benefits such as free travel insurance, air miles, dining, cash back or concierge services. It is you who need to decide whether you actually want these benefits or not. Depending on your needs or usage, you should decide which card is best for you among many available in the market. You need to decide that are these benefits worthy for you? Will you be able to use these benefits completely?

Now, that you know what key parameters are important while choosing the credit card, hence it becomes easy for you to decide which card would be best for you.

Once you have decided which credit card to choose, the next thing comes into play is-how to apply for it?

What are the Most Convenient Ways of Applying for Credit Cards?

There are the two most convenient ways that allow you to apply for credit cards.

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Online

You can easily apply for a credit card while filling up the form available online. Follow all the instructions carefully as mentioned on the site, and fill your online application form.

In-branch

You can also visit the branch near you so as to apply for a credit card. In order to make this process more convenient, you can book an appointment earlier, and fill the application form to apply for credit card.

 What If Your Credit Card Application is Rejected?

There are various reason on the basis of which your credit card application  can be rejected. Few reasons are-low income, poor credit score, multiple EMI’s running and many more. But, there another reason and i.e. CRA check. Yes, if your application is rejected on the basis of CRA check, you can ask your lender the reason for rejecting your application, and you can even ask for the copy of your credit file from the agency by just paying a small fee.

  • You credit file includes:
  • Repayment History
  • Financial Problems like Defaults Registered Against You
  • Previous Credit Searches
  • Electoral Roll Details

However, if you find something wrong, you can even directly talk to the CRA as well as the bank so as to correct the errors and update the correct data.