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Credit cards are an important means of establishing credit history. Using them responsibly, controlling your spending habits and not misusing them will always help the cause. Here are few things to keep in mind before you apply for a credit card.
It is always better to use a credit card which is issued in your name. The
simple reason being, it helps establish credit history for you. Use the correct
identity, and get credit card issued for proper name, social security number,
and address.
Decide what type of credit card you need and don't get impulsive about obtaining
it. Have patience and compare various offers that suit your choice.
The APR of credit card is a very important point not to be missed by any credit
card owner. There are various types of APRs, like the 0 intro APR, regular APR,
APR for cash advances, APR for purchases, APR for balance transfer etc. These
APR contro what interest you pay on your credit card outstanding balances. Get
compelte idea about the APRs that will affect you during your credit card ownership.
If you are getting a reward credit card, make sure you know how the rewards
will be redeemed and using the credit card at what locations or merchants will
help you get the maximum reward benefits. Another thing to watch out is the
limitations to the reward program. Check carefully about what limits the rewards
like minimum reward points, blackout dates, redemption locations, choice of
airlines etc.
Carefully note the billing date of credit card, the payment has to reach the
credit card company before this date. Also check out whether the credit card
company allows grace period or not.
The fees like cash advance fees, balance transfer fees, annual fees, late payment
fees are a regular feature with every credit card. Keep a track of them.
Read the terms and conditions of the credit card document carefully before
using the credit card.
These steps should help you get the right credit card.
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