A credit card can be a suitable financial tool when used responsibly. Most people enjoy the conveniences and benefits of credit cards for various reasons such as overcoming financial crunch, accruing rewards points, and getting access to instant finance.
Most people apply for a credit card based on their spending capacity, however, issues arise when the same credit card is used for unnecessary purchases leading to the purpose of using a credit card in the first place going down the drain. There are thus a few top advises which one must follow before using a credit card, a few of which are as follows -
Interest Rate
One should always ensure that the credit card bill is always paid and in full every month. This is because if you fail to do so then you are charged interest. Thus, before choosing your credit card lender, you must check the interest rate charge. You should also check the annual charges on your credit card if any and cash withdrawal charges.
Credit Score
Having a good credit score is more than essential as it is one of the parameters which is used to gauge the credit-worthiness of an individual. If you want to ensure that your credit card application gets through then you must have a credit score of around 750.
Eligibility
Before approving any credit card application, lenders check for a few aspects pertaining to the applicant such as her/his job stability, income, age, the city being lived in. Further, necessary documents also need to be submitted in order to substantiate the claims and thus keeping such documents handy helps in reducing the time taken to get the application approved.
