4 Things To Consider Before Getting a Credit Card

So you’ve got your first job and now you’re wondering how you are getting all those credit card offers that claim you have been pre-approved for a credit card. The question is are you taking these offers and do you really need a credit card right now?

Credit cards nowadays are starting to become more of a necessity rather than a want. Credit cards are now being used in almost any platform of purchase and can even be efficiently assist you in your online transactions. Some websites even require a credit card for you to register as a member. Here are 4 things you need to consider when you decide on getting a credit card.

  1. Check the interest rates.

Always remember that any form of credit and loan entails a cost of borrowing the money from a licensed money lender  which is represented by an interest rate. If you miss out payments and roll over your outstanding balance, these interest rates are the amount you pay for the amount that is borrowed. Remember to compute for the APR for each card offer you get or the credit card issuer you are planning to get from. Also learn about the fees that come with the use of your card.

  1. Learn about the loyalty points and bonuses.

Most credit cards now offer loyalty points and bonuses for the use of the card. Learn how they are used and how you can take advantage from them. They can help you purchase a need at a discounted price or even for free. While the points add up while you are using your card, make sure you are also planning on where to use them.

  1. Make sure you understand how charges work.

Credit card issuers have their own set of terms and conditions. Most terms are common across banks but certain terms and conditions such as charges differ. Charges may also be different between different types of cards issued by the same bank.

  1. Check the minimum payment due.

If you cannot help but roll over your credit, you will need to pay a minimum amount due. Know how much your minimum payment should be to make sure you choose a card with the lowest minimum amount percentage due.