Related Credit Card Article

"Some tips to consider before applying for a credit card"

By admin | October 11th, 2007 | Credit Card Guide

Before applying for a credit card, check to see if the card provider is offering you one or more (and preferably all) of the following:

* Introductory Rate
* Balance Transfers
* Annual membership fees
* Statement period & interest free loans
* APR
* Minimum monthly repayments
* Loyalty Programmes

An introductory rate

Special rates of as little as 0 percent APR can be given by credit card providers to new cardholders for up to 6 months.

Balance transfers

If you already have a credit card and are looking to swap to a new provider make sure the new card provider gives you an interest rate discount or holiday for the introductory period.

Annual membership fees

Simply put – try not to pay them. Also, with so many credit card providers fighting over your custom, there should be no real reason why you should have to pay these and excessive APRs.

Statement period & interest free loans

Time it right and you can get anywhere from 25 – 90 days of free interest on any purchase you make on your credit card. This interest free loan period, however, depends upon the system the issuer has in place – so check the small print to see how long the average period is between you charge an item and it appearing your statement: the longer the better!

APR

Comparing APR had always been the most reliable way of telling which credit card issuer you should apply to – the cheaper the APR, the more likely you were to apply for that card. However, with the introduction of balance transfer periods, introductory rates, statement periods and annual membership fees, APR no longer plays the pivotal role it previously did in helping cardholders to decide to apply for that card. Nevertheless, the APR percentage rate should still factor high on the list of reasons why you apply for a particular credit card.

Minimum monthly repayments

There is not set minimum monthly repayment and so different card providers require cardholder to make different minimum repayments. If you are going to be the type of cardholder that only makes the minimum repayment, this is likely to factor high in your list of considerations of which credit card provider to apply to.

Loyalty Programmes

Almost all credit cards now offer loyalty programmes, with some tailored to cardholder’s particular interests; for example, the World Wildlife credit card. Although it should not necessarily be the overriding reason why you apply for a credit card, the provider’s loyalty programme can be a consideration.

Tags: credit card tips, Credit Cards

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