Having a credit card is the best way to meet your short-term financial requirements if you use them wisely. It enables you to spend from a predefined credit limit and make purchases without incurring any interest charges. However, it is worth noting that you will have to bear interest charges and other penalties if you miss your credit card payments. It is more like a hammer – it is an effective tool to solve your problems, but it can also hurt if used improperly. 

So, when you apply for a credit card, you will have to get a card that best serves your needs and preference. We have prepared the top things to consider while applying for a credit card: 

Check your credit score

Your credit score is one of the crucial factors considered to determine what kind of card you are eligible for. If you have a credit score of 750, you can enjoy reward programs, sign-up bonuses, and low APR.

Before applying for a credit card, you must check your credit score online and make sure that your score matches your issuing bank’s requirements. If you find discrepancies or errors in your credit report, immediately raise a dispute with the Credit Bureau. Rectifying mistakes in your credit profile will significantly boost your credit score, increasing your chances of availing of maximum benefits on your credit card. 

Assess your intent and determine how you will use your credit card  

After checking your credit score, you will need to determine how you will use the credit card. Are you planning to pay your credit card bills on time and in full, or do you wish to carry a balance every month? Is it for emergency purposes or to pay for everything? Having answers to these questions will help you narrow your search and find a credit card free that best serves you. 

If you intend to pay your credit card bills in full every month, you do not have to worry about interest rates. Make sure to find a credit card that comes with no annual fee and a longer interest-free period. Paying your credit card bills on time and in full will likely improve your credit score. 

Look at the interest rate 

Before you apply for a credit card, it is crucial to consider the interest rate on terms and conditions. The interest rate appears as the Annual Percentage rate, which is either fixed or variable tied to the prime rate. The best part about a fixed rate is that you know how much you will have to pay. However, the variable APR fluctuates.  

You do not have to worry about interest rates if you do not carry a balance from month to month. Paying your credit card statement balance in full every month enables you to enjoy the absence of interest.

Consider fees and penalties

Besides watching out for interest rates, you will need to pay other fees and penalties, such as fees for balance transfers, cash advances, or increasing your credit card limit. You will also have to bear penalty charges for making a late payment or going over your credit limit. So, while choosing your credit card, find one that has reasonable fees. For instance, if you wish to opt for a balance transfer, your credit card should offer no balance transfer fees and an interest-free period for at least one year. 

Consider the rewards, cashback, and bonuses

All credit cards come with reward programs, cashback, and bonuses. You can earn reward points or miles on the purchases you make with your credit card. For instance, purchasing groceries, gas, or dining at restaurants. If you use your credit card wisely, you can save significantly. 

While choosing your preferred credit card, make sure that it comes with maximum reward programs with the flexibility to earn and redeem them. Find out the limitation on the rewards points you can earn in a year and if they expire. 

Apply for a credit card online

After making your mind around the credit card you want, all you have to do is visit your issuing bank’s website and apply for a credit card online. While filling in your application, you will need to provide information like your name, contact number, address, and annual income. It is worth noting that your eligibility for a specific credit card depends on your income and credit score.

After completing your application, it would be wise to carefully read the terms and conditions of your credit card agreement. Reading the fine print enables you to avoid surprise fees, interest rates, and penalties. Make sure that you agree with those terms and conditions before signing or submitting your application. 

After submitting your credit card free application, your missing bank will run verification checks. If everything is in order, you will receive your card within 10 to 15 days.