4 Questions to Ask Before You Apply for That Credit Card
There are no two questions about the fact that credit cards are synonyms to authority and wealth. There’s a feel-good factor associated with credit cards and a card holder feels elevated among his or her peers. Likewise, the fact also remains that credit cards are convenient and secured way of payments. Credit line in many ways helps to settle unexpected bills such as hospital or an emergency travel.
There are however some golden rules to apply for a credit card and the manner it is used. A thoughtful consideration while a person applies for a credit card lessens the chances of rejection from the bank. Instead of being impatient and signing on the dotted lines without thorough inspection it is suggested that an applicant must consider the following 4 basic questions.
Q 1. Do I really need a Credit Card?
This is the fundamental question only you can answer. Depending on your banker, friend or a relative to answer this basic question can only lead to a chaotic situation. Only you know your income, and the monthly expenses you incur. It is only you who know where you shop, how do you entertain your guest and lastly but the most important point; can you afford it. One must be clear in his mind that credit card is not a necessity, if you come to a conclusion there is no genuine need, wait for the right time to apply for a credit card.
Q 2. Should I apply for a credit card now, what are the chances of being accepted?
When you apply for a credit card you should not take it for granted that your application will be accepted even if you already have 1 or 2 or 3 credit cards. A lot depends on your credit history, your spending pattern and the relationship you’ve maintained with the bank. A habit of not paying, or delayed payments will be considered as negative point and bank can reject your application. Similarly, when you apply for a credit card for the first time the process is even more tedious. You must fully understand the requirements.
If for some reason you were not able to maintain your credit history, perhaps this is not the right time to apply for a credit card. Your focus should be to streamline budget, spend whatever can be paid back on time and improve your relationship with the bank.
Q 3. Determine whether benefits and reward offered by credit card match my lifestyle?
Among the several reasons to apply for credit card, the foremost are the benefits, discounts and reward points associated to it. This is a tricky situation, on the face these benefits may look exceptionally good but perhaps do not match with your lifestyle. Now suppose a certain card offers fabulous discounts on meals at high end restaurants, or boutiques and 5 Star hotels. It for you to see how many times you visit such high-end establishments. Or would you prefer a card that offer mileage points at gas stations! If you are a frequent flyer, does your card offer facilities at airport lounges?
It is best to compare credit card before filing an application and carefully examining the benefits your plastic money offers. You can only come to a precise decision if you have made “compare credit card” your top priority.
Q 4. Will I use my card responsibly?
Being responsible is paramount for everything, so is when you have a plastic card in your wallet. Remember credit card is not a fund to upgrade your lifestyle you can’t afford. If you are eyeing for a new card because the cards you already have are busted, it is disaster just around the corner. If it’s your first card, be vigilant while you spend. Though it is beneficial to make as much purchases on card because by doing so you’ll be accumulating your reward points but flashing your card for purchases that are unnecessary is no less then a calamity lurking not far away.
Credit cards are replacement for cash and not an extra income for you to spend unwisely. Apply credit card when you are absolutely certain that you can pay on time; you are eligible and that your application will not be rejected by the bank. The most important thing which should be on your mind is to compare cards before you proceed to apply.