The best things to do before purchasing a credit card


Credit cards have evolved beyond being simply a financial product providing the user with short term credit facilities.

Now it’s about choosing the right card and using it as wisely as possible to help you save money and get the most out of it.

The team at www.onlinemoneyadvisor.co.uk have compiled a list of the main things to consider before purchasing a credit card, so the process is much less confusing.

Check the APR or the interest rate

Clearing the full balance owed on a credit card by the due date means you won’t have to pay interest, however, for those who aren’t able to clear the balance on time, the APR is the rate at which the credit card issuer charges interest on your outstanding balance.

Compare credit limits

Your credit limit is the maximum amount you will be able to use without paying an over limit fee. It is normally determined from your annual income, your current credit score, and any additional financial assets you have.

Instead of going for the card that gives you the highest limit, check the interest rates, fees, and other charges before making your final decision.

Keep an eye out for additional fees and charges

There are many other fees and charges that can be added to the overall cost of owning a credit card, such as annual fees, cash advance fees, balance transfer fees, and transaction fees. abroad, cash withdrawal fees and card replacement fees. Make sure you know exactly the rules that come with the credit card you plan to purchase.

Check out the rewards and benefits

Many credit cards also offer rewards programs whereby using your card can help you earn points that can be redeemed for free products or services, such as airline tickets, shopping bills. and online shopping.

Ask yourself if you really trust yourself to have one

If you’re someone who splurges on the shopping spree, having a credit card might make you think you can do it more often, but what you need to ask yourself is if you really have trust yourself to have one. Yes they can be helpful, but if you are maxing out your card and not being able to pay off your balance, it can negatively impact your overall credit score and make it much less likely to be accepted at. the future. credit.


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