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What To Do When Applying For A Card

Before applying for a card

There are a lot of factors to be considered before you apply for a credit card. The first and foremost factor is for what purpose do your require a credit card. Do you want the card for your monthly or weekly expenses or do you want to keep your card only for big emergency expenses? In fact credit cards let you choose how much you borrow subject to an upper limit and how quickly you pay back the borrowed funds. The other factor to consider before buying a credit card is to find out what types of credit cards are available and which companies are offering them. You can compare the different credit cards from the same company and also the same type of credit card from different companies. When you compare the different types of credit card offers, you get a broader picture of which type of credit cards will suit all your requirements. The reason why people prefer credit cards is that they are very convenient to carry. Once you have a credit card you can simply shop for goods without applying for a loan at that time. Off course at the end of the month you have to pay your dues along with the interest rate applicable. There are a lot of companies selling credit cards in the UK. The most notable amongst them are VISA, American Express and MasterCard. There are several smaller companies as well that sell credit card services in the UK. However, it is preferable if you get credit cards from reputable organizations as they are more professional and trustworthy.

Points to be considered before applying for a card

Charges This is the most important point to be considered when applying for a credit card. Your monthly dues consist of your monthly expenses plus any balance carried forward from the last month plus interest charges payable. In case you pay the whole amount then there is usually no interest charge. Hence if you pay the full balance every month, then credit cards give you interest free credit for a maximum of 56 days.

APR APR is known as Annual Percentage Rate. An APR takes into account the interest that you pay, any annual fee you must pay and when and how you pay the interest and the fee. The APR shows the cost of borrowing on a standard basis and you can compare the APRs of different cards. The APR does not take into account charges you might have to pay, such as charges for missing your monthly payment.

In case you pay only the minimum amount of the dues each month then it will take a long time for you to pay your full bill. Also the interest rate increases as more and more unpaid amount gather in your account.

Items in Small Print
Do read carefully the items in small print like the period of free credit, from when is the interest charged, is there an annual fee, and what are the consequences if you cant pay the minimum amount.



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