Credit Insights
Getting your first Credit Card? 5 things to ask
Essential things to ask before applying for a Credit Card.
Key insights
Credit limit is one of the things to ask before applying for a Credit Card.
Credit Card benefits are several and lasting.
Make the most of your Credit Card offerings and choose the right fit for you.
Let’s rewind to when I got my first smartphone. ‘Excited’ would be an understatement. It was such an amazing moment that I cherish even today.
Getting that perfect phone was backed by a whole lot of research. I did all that I could to know the things I should do before buying a phone.
This made me realise that correct knowledge helps make decisions that I won't regret later. So, I followed a similar approach for my first Credit Card.
Curious to know what they were? Read on as I share the things to ask before applying for a Credit Card.
5 things you should know for real
Just like me, you too can make the most of Credit Cards, but first, here’s what to know before getting a Credit Card.
1. It’s cool to spend within limits
Think about it this way. You are driving in a by-lane at a speed beyond the permissible. Dangerous to life, right?
Likewise, there is a limit attached to Credit Cards, which, when exceeded, becomes financially alarming.
Your card limit is one of the things to ask before applying for a Credit Card. Make sure to know the limit your card offers and spend within the cap to earn rewards as you buy all the cool stuff you've always wanted.
2. Consider the applicable fees
Every convenience comes at a cost, but for a good reason; in this case, responsible spending. That movie ticket you booked last time had convenience charges, didn’t it? Similarly, in the case of Credit Cards, you need to pay Credit Card fees. These include annual fees, late payment fees, cash advance fees, etc.
Simply discuss with your card issuer and understand their nature and quantum in detail. This is one of the other things to ask before applying for a Credit Card.
3. Timely payments will be your saviour from debt
Do you remember how your parents always paid your college fees on time? This ensured your studies continued without any interruptions. Now that adulting has hit you already, it’s your turn to meet your Credit Card bills without delays.
Timely payments allow you to continue enjoying the Credit Card advantages. Here’s one of the things to ask before applying for a Credit Card. Talk to your card issuer to understand the billing cycle and the payment due dates.
4. Credit Cards usually keep your credit score strong
Just like a fit body is the perk of regular workouts, a strong credit score is the reward of timely Credit Card bill payments.
Why does this even matter? Why is it one of the things to ask before applying for a Credit Card? A strong credit score vouches for your creditworthiness and increases the chances of loan approval in future. Thus, funding your dream car or home becomes comparatively easy.
5. Retrospection for the win
Just like self-awareness is good for personal growth, financial consciousness is the key to monetary well-being. How about setting aside a dedicated time every month to review your expenses? This will prevent you from going over the Credit Card limit.
So, before going on a swiping spree, create your budget, and make sure to stick to it. What are your spending limits is one of the important things to ask before applying for a Credit Card. You and only you will be the best person to answer this.
