Key Credit Card Questions
What Are the Key Questions To Ask When Applying for a Credit Card?
So you want to apply for a credit card, but you’re not sure which questions to ask? Worry not. We’ve got the key questions you want to ask when applying for any credit card, and the answers you should be looking for.
Fixed Rate or Introductory?
The first thing you should ask when applying for a credit card is whether it’s a fixed rate credit card or an introductory rate credit card. If it’s an introductory rate credit card, find out how long the introductory period is for and how much the interest rate will be once the introductory period is over.
Application Fee?
Is there an application fee? There shouldn’t be! The credit card market is so saturated that credit card companies should be competing for your business, not asking you for money just to apply.
Annual Fee?
Is there an annual fee? If you have bad credit or if you are signing up for a rewards card, it’s not uncommon for there to be an annual fee. However, if your credit is good and the card you’re applying for doesn’t offer rewards, you shouldn’t have to pay an annual fee.
Is It a Variable Rate?
If the interest rate being offered isn’t an introductory rate but rather a variable rate, you want to find out how when, how often and by how much the variable rate can change.
Processing Fees?
Are there any processing fees involved? Most credit card companies don’t charge processing fees nowadays, so see if there are any processing fees associated with the credit card you’re applying for.
Is It Really a Fixed Rate?
Oftentimes credit card companies will say they have a fixed rate, but then the fine print will state they can change the fixed rate. Make sure that the fixed rate is really a fixed rate and if the rate can be changed, how often and by how much.
What’s the Grace Period?
Find out what the grace period is. If the grace period isn’t long enough, you may be facing late charges if you can’t get the payment in before the grace period is over. Make sure that the grace period is at least 20 days if not more.
By asking these questions, you’ll be better prepared when it’s time to apply for your credit card.