Why do I need to apply for this card?
First and foremost, you have to ask yourself why you are applying for the card. Definitely, you need to look for a card that has better terms than your previous ones. It could be a card that has lower interest fees, better perks, or no annual fees. You should choose one that matches your spending habits. For example, if you are used to paying off your balances every month, then you might not exactly need a card that offers lower interests, but rather one that offers no annual fees. On the other hand, if you always leave balances, then your priority definitely is a card that has the lowest interest rate.
Is this card any better?
It could be hard to resist the temptation of applying for a card when the issuer sends you an offer. However, it’s worth knowing that the only card you were shown may not be the best one for you. Before applying, make sure you compare the card against the others of its kind. You can easily search online for reviews and customer complaints.
What is the Regular APR?
Most cards may offer lower interest rates during the introductory period, which can make it appealing if you don’t know how it works. However, after this introductory period expires, you will begin paying for regular APR’s, which is the real deal here. Always inquire what the regular rate will be and for how long the introductory period should last.
When are Rewards Revoked or Reduced?
This is particularly an important point if you’re getting the card because of points or rewards. It pays to know that some rewards are revoked if you got late on payments even for one day, so you definitely have to sort it out.
Can my Transactions be Used Against me?
Some issuers may assess your credit worthiness by looking at your purchase records, which can sometimes affect your credit limit or APR. If you view this as invasion of privacy, you have to inquire whether the issuer does this.
Can I get off the Account if I Cosigned for Someone?
If you cosigned for a college student, for example, you have to determine if you can get off the hook if the minor turns 21. In addition, you have to find out if you can get out by yourself, or you need the cooperation of the other party.
Am I Protected Against Credit Card Fraud?
You have to inquire how the issuer handles unauthorized credit card use. You need to determine the maximum amount you have to pay in liability, and if the issuer monitors usage and will shut down your card when it detects suspicious charges and locations.
What Assistance Should I Get if I Run Into Financial Difficulties?
It’s wise to know in advance how you will be treated if you fall behind. Will the issuer slash your interests temporarily, will you lose points or benefits, or will you have skyrocketing penalty fees? Ask when do they send the account to a collection agency or when to consider it charged off.