Do’s and Don’t Before Applying for a Credit Card
If you are currently in some financial restraints and you are looking at ways in which you can ease the burden and begin to move towards a brighter financial future you will have several options open in front of you. You could take the route of taking out a payday loan to ease the financial restriction over the coming weeks and months, but this should only ever be applied for if you can guarantee that you have the incomings from employment to cover the repayment terms set out by your payday loan provider. You should also ensure that you only apply for payday loans from a reputable and responsible short-term loan lender.
One of the other ways in which you can begin to build a future through careful credit management is through an application for a credit card, but you have to be completely sure that you want to have a credit card, understand the methods for using it, the interest applicable to your specific card, payment dates, and be able to pay back the card every month.
Before you apply for a credit card first take advantage of the eligibility checks that you can find on various websites. With a credit card eligibility check you can ensure that you will be accepted before applying, or that you have a good chance at least. If you apply in just hope it will leave a search on your credit report, which other lenders can see in future when you are applying for other types of credit. If you search too often, and with rejections as part of your search history, it will not look good to other lenders and could hinder your chances of gaining credit. If you don’t have a credit history, or very little credit history, it is likely that you will only qualify for cards with high interest points. As long as you are methodical with payments this can still be a good start.
If you do decide to apply for a credit card it is vital that you understand one primary focus – never miss a payment. It might seem like a really obvious statement to make but the moment you miss a credit card payment and start having to chase your tail, the worse it can be potentially for your finances. Many credit card providers will hit you with a late payment fee. Add to that the additional interest on the lump sum loan amount that adds up the later you are paying, and it can be difficult to prevent the debt from snowballing out of control.
The best way to ensure that you do not suffer the long-term negative effects of missing a credit card payment is to set up a direct debit on or before your payment date each month. This will ensure that you have peace of mind that the payment will be made, and you never have to worry about potentially forgetting to make the payment one month (which can happen to the best of us at times).