In this modernized era, the demand for credit cards has been increasing day by day among individuals. Everyone wants to have a credit card in order to achieve financial stability and to make their spending experiences more & more rewarding. But, not everyone has a successful credit journey; some people end up having poor financial health due to their irresponsible behavior towards credit card usage. At the beginning of your journey, there might be many questions coming to your mind and you might find it really confusing to understand your card’s terms & conditions. If you are thinking of starting your journey with credit cards and have already decided which card you are going to start with, there are some questions that you must ask your card issuer or try finding their answers on your own. Keep reading to know what those questions are and why it is so essential to ask them:
1. Do I need a credit card?
The first and foremost question to ask yourself is that do you actually need a credit card or you are just applying for it as a status symbol? Answering this question will really help you before making a decision in a rush. Applying for a credit card is a big step and the decision must be taken after reviewing all the important aspects.
2. Will credit cards help in building strong financial health?
The next thing to ask yourself is that will a credit card help you in building your financial health or lead you to a worrisome state. You should only apply for a credit card if it helps you in building a strong credit history that can help you in the future while applying for a loan.
3. Do I meet the minimum eligibility requirement?
The next thing comes is whether you meet the minimum eligibility requirement or not? Chances are if you do not meet the minimum requirement your credit card application will be disapproved. So check thoroughly before applying for a credit card.
4. Do I have sufficient income to pay off credit card bills?
Another important aspect you need to keep in mind is that whether you have sufficient income to pay off your credit card bills or not. If you do not have sufficient funds then there are chances you will be caught under heavy debts thereby leading to poor financial health.
5. Do I need a good credit score for applying for a credit card?
Since all the card issuers check the credit history of all applicants, your application will also be screened on this aspect. You are required to have a credit score of 700-750 which is considered a good credit score by credit card issuers. Your credit card application may or may not get rejected on this factor.
6. How much will it cost me?
Before applying for a credit card you need to compare all the credit cards and see how much are there joining and renewal fees. You can also check the credit card reviews while comparing them. Choose the credit card that compliments your financial health and that can help you in maximizing the credit card benefits. You are also required to read the most important terms and conditions of each credit card so that you will be well aware of all the hidden charges and fees.
7. How can I choose the right credit card?
After all the preliminary questions, the next most important thing comes is how you can choose the right credit card for yourself. By comparing credit cards on the basis of fees, rewards, welcome benefits, etc. you will be able to narrow down to one credit card that suits your profile and maximizes your benefits. The suggestion is to apply for low-interest credit cards that can complement your profile and let you enjoy the benefits of credit cards without any worry.
Bottom Line:
Asking the above questions can help you to make an informed decision while applying for a credit card. The catch here is how efficiently you can manage your credit card. Not paying your credit card dues will be carried forward to the next credit card billing cycle which means you will be charged with a higher rate of interest. So, it is advisable to keep your dues clear all the time.