Finance

Applying For A Credit Card? Here Are Some Dos And Don’ts

Having a credit card with you is more than essential in this generation. With a number of things happening on a daily basis, a credit card can prove to be useful in times of unexpected situations or emergencies. If you are of legal age and do not have one as of yet, then it is high time that you consider applying for one as it can be your saving grace. Moreover, it helps boost your credit score – a very important financial part of your life that will definitely come in handy in the future.

Here are some useful tips when applying for a credit card:

Dos

Applying For A Credit Card

(1) Do Take Into Consideration Your Finances

First and foremost, state your actual income – do not fake your income by increasing it to impress your credit card company. In the same way, do not report less than what you actually make – this may limit your choices along the way. Make sure to state just the right amount that you are making every month – including payments from all other freelance activities that you are currently engaged in.

(2) Do Take Your Time And Be Patient

Do some thorough research before committing to the responsibility of having a credit card. There will be many lending institutions that will offer you credit cards along the way – but start off by choosing one that offers you the best deal in terms of interest rate. Since you are new to the credit card game, you will need to get the hang of using one first. For this reason, choose one that will not be that big of a financial burden to you.

(2) Do Know Your Credit Score

Knowing your credit score is important as this will help you determine whether or not you should be applying for a credit card in the first place. Moreover, it will help you determine which card you should be applying for.

If you think you have a high credit score since it is your first time applying for a credit card, you may be in for a surprise. Knowing where you stand with regard to your credit score helps set your expectations closer to reality.

Don’ts

(1) Don’t Forget Your Lifestyle

Quite simply, choose a credit card that is best suited to your lifestyle. If you want to get a credit card for grocery and other shopping, then choose a card with highest possible cash back for those categories. If you travel frequently, however, then choose a card with no foreign transaction fees as this can prove to be very expensive when used abroad.

(2) Don’t Spend Beyond What You Can Afford

Do not make the mistake of spending more than what you can spend. Hold back on spending if you have a number of expenses coming up – even if your card has a high credit limit. There is nothing worse than credit card debt – the longer you hold off on paying your debt, the higher your payment will be because of killer interest rates. Hence, keep track of your spending and pay it off before your bill is due.

(3) Don’t Hand Out Authorized User Cards For Business Purposes

If you would like to hand out authorized credit cards for business purposes, then why don’t you consider handing them a debit card instead? Ask yourself: “Do they really need it?”

Having multiple people spend on one card may seem smart because you can earn maximum rewards while monitoring their expenses. However, they can also use the card for their personal interests if not monitored properly. For this reason, give them a debit card or cash instead – in this way, you can be at peace knowing they will not spend more than they are given.

Want more tips on how to get approved for a credit card? Vist applyforcredit.cards. You can also browse through the handy tips at http://www.unl.edu/smmc/How%20to%20Find%20the%20Best%20Credit%20Card.pdf
Want to get approved for a credit card? Our experts at applyforcredit.cards give you some useful tips to up your chances of approval.

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