When you apply for credit card ask yourself those questions?
What is the interest rate?
There’s a continuing theme in this guide certain credit card features, regardless of the type of card, are always important to compare. The interest rate of a card without an annual fee should be compared. If you’ll be carrying a balance from month to month it may be a good idea to select a lower rate.
How many interest free days do you get?
You should still be able to get interest-free days even if there is no annual fee. Most cards will allow up to 30 days interest-free credit on purchases, although this varies. Note that you don’t actually get 30 days interest free on all your purchases this is the maximum amount of time you get if your first transaction is on the first day of your new statement period.Check whether the rates are introductory rates or ongoing – One way for card providers to hook new customers is through 0% interest deals, which are offered for a number of months. This may be good if you only plan to use the card for a short period of time, but find out what rate you’ll be paying once the deal ends.
What fees will I pay for making purchases overseas?
Card providers charge a foreign transaction fee ranging between 1 – 3% per transaction when using your credit card overseas. When comparing a card which you’ll use overseas to make purchases, look for one that waives this fee.
What fees will I pay for making withdrawing money overseas?
If you plan on using your credit card to withdraw money from ATMs overseas, there’s usually a flat rate fee of as much as $5, in addition to the foreign transaction fee. Again, if you plan to make many overseas cash withdrawals using your credit card, compare and find one which waives this fee.
What is the travel insurances provided?
Gold and platinum cards usually offer complimentary travel insurance when you use your card to pay for most or all of your travel expenses. When comparing cards, take a look at the individual policy booklets and ensure you’ll be covered for the type of trips you’ll be taking.
What’s the maximum credit limit?
If you plan to use your credit card for large spends, you may want to compare cards with higher maximum limits.
Can I balance transfer from my existing card provider to this new provider?
Almost all credit card issuer provide that option, but before you transfer your balance you should call your credit card issuer and ask them to make sure that this is the case.
How do you earn and spend your points?
Points are earned when you spend on your credit card. Each credit card will earn points at a specific rate, such as 1 point per $1 spent. Some credit cards may come with an American Express, Visa, Discover, MasterCard, each with different earn rates. Rewards cards may have programs which are offered by the card provider themselves, or through an airline program, such as the American Airline Flyer programs. There are many different rewards types available such as: travel rewards, where you can exchange points for part or all of an airfare; retail goods, where you can use your points to pay for things as diverse as clothing or technology.