When you apply for a credit card, there are two main sources of information that the issuing bank uses to decide whether or not to accept your application. The first is the information that you supply on your application. The other is information that they get about you from credit reference agencies. The information that you give is important, but when you apply for a credit card, all of that information will be checked by the issuing bank, so it's important that you make accurate statements. Here are a few important things to keep in mind when you apply for a credit card.
- Be truthful
It may be tempting to stretch the truth a bit when you're filling out your credit card application - exaggerate your income, perhaps, or forget to mention one or two outstanding debts. It's never a wise idea. In the first place, lying on your application when you apply for a credit card is considered fraud, and grounds for denying your application. In addition, if you stretch the truth about your income when you apply for a credit card, you may find yourself with a credit card debt that's outside your abilities to repay. - Don't apply for a credit card that you get in the mail
Seriously. Most householders find their postboxes full of solicitations and credit card applications. The same holds true for email users and dozens of invitations to apply for a credit card that flood your inbox daily. Don't do it without shopping around to see how the offers you're getting compare to other offers for credit cards. Take the time to research offers and apply for the credit card that suits you best. - Don't apply for a credit card based just on the APR
While the APR is a good comparison point when you're comparing credit card costs, it's only one of the many things that you should be checking. You should also check to see what fees you'll have to pay, compare reward schemes and cash back schemes and take into account the terms and conditions of all the credit card offers you're considering. - Don't apply for a credit card just because you get a cool free gift "just for filling out an application"
It may be tempting to fill out a credit card application just to get that USB drive or a free hat, but you're not doing yourself any favors. If your application is accepted, you may find yourself liable for annual fees or monthly maintenance fees. Even if you're not accepted, the application will show up on your credit report and could affect your chances of getting credit when you really need it. - Always comparison shop for credit cards as you would for any other important decision or purchase in your life
Most of us don't think of a credit card as a purchase, but in reality, it is. You are paying money to a vendor for a service. Would you hire an accountant or CPA without checking his credentials? Would you sign up for a health club without checking for the best deals and facilities in your area? It's no different when you apply for a credit card. Always take the time to compare credit cards with each other to be sure that you're getting the features and rates that suit you best.
When you're ready to apply for a credit card, you'll find an online comparison site like moneyeverything.com to be enormously helpful. It allows you to search for credit cards based on features and to compare credit cards side by side so that you're always certain to get the best possible deal.
