4 Questions to Ask When Getting a Credit Card
Bank Sales executives are task oriented. They are always busy with finding new Credit Card customer by promoting the Credit Card features and promotions. If you haven’t use any credit card before you can be easily motivated to get what they are promoting. Sometimes, they will not disclose you what are other important factors hidden behind that credit card scheme which might become hassle for you in future. It is always our responsibilities to get as much as information before applying for a card. Because once you committed, very rarely you will change your card.
I always suggest my friends to ask at least 4 questions from Bank Sales executives before applying for credit cards. I believe my suggestions will also help you to select the most suitable credit card for you – Here you can find the most suitable credit card for you- If you understand these questions, you’ll be more vigilant when signing up any new credit card.
1. What is the Exact Credit Limit?
Bank will determined your credit limit by assessing your income, current debt level, and credit history. If you do not have a good credit history, a history of late payments, low income, or a high debt level you may be approved for a low credit limit. You won’t know what your credit limit will be until you’ve completed your application and the Bank is approved for the card.
When you utilized more than the your credit limit, you will be imposed a fee. Often, you won’t even be told that you’ve gone over the limit; you only can get to know from your bill.
Therefore it is always better to understand more about your credit limit, before committing for a credit card.
2. What is the Billing Cycle?
You should clearly know when do you have to pay off the credit card before you’re considered to have defaulted. You may get your salary by end of the month or mid of the month. It is better to align Billing Cycle date just after your salary date to enjoy convenient billing phrase.
Nothing sucks worse than paying your credit card bill after the due date. Even if you missed it by one day adds significant and unnecessary interest. You can read how HSBC Calculates Interest for Credit Cards and how Commercial Bank Calculates Finance Charges for Credit Cards. So, it is always good to synchronize your credit card billing cycle just after your salary date.
Ask your Bank executives about the Billing Cycle and whether it is personable.
3. How Long do these Promotions Last?
Many credit card sales executives always use promotions to catch your attentions. During that time, they will lie by omission. Sure, they will tell the truth when they talk about the 0/= annual fee, or the 0% interest free payment. But they won’t emphasize that these are temporary.
You need to ask them that those promotions valid forever or just for a month or an year. Similarly if you spot a feature that’s attractive to you, don’t forget to ask if that’s just a promotion and if it is, when is the exact expiry date?
4. Fees associated with that Card?
Apart from the threat of rollover debt, credit cards can also impose late fees. Sometimes, you aren’t even informed of the late fees until you’ve incurred them three or four of them. No use screaming about it then; the guy at the bank will just shrug and say “Hey, it was in the 10,000 word contract you signed.” Would like to know more about what you should know about your Credit Card?
I hope my suggestion will help you to choose better credit card for your needs. I know comparing credit card benefits has all the excitement of being anesthetized, but you can quickly shop at comparison sites like Moneta. It pulls up a list, and it won’t take five minutes to pick the right one and apply.
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