Credit cards have a lot of information associated to them and being ignorant about critical information can prove to be disastrous in the long run. There are a number of people who apply for credit cards without knowing the basics. this is especially important for people who are applying for these cards for the first time. irrespective of whether you are applying for student credit cards or platinum credit cards, there are key points that you need to be aware of.
The first point that everyone should know is that there are innumerable types of credit cards that are available today. There are cards for people without any credit history and even for those who have a bad one. people with a good credit rating are in luck because banks will be willing to bend over backwards to offer you credit cards that are well suited for your financial commitments.
There are various features associated with credit cards. While a few of the offer reward points to customers, there are a few others that offer air miles. There are also cards that do not offer any rewards but provide nominal interest rates and annual fees. It is the features associated with the card that plays a major role in deciding on the right option for your needs.
You should also know that you will be billed once every 29 or 31 days for the purchases made using the credit card. You will have up to two weeks time to pay the minimum amount due on your card. not paying your dues on times will lead to extra charges in the form of various fees such as late payment fees and delinquency charges.
There are innumerable fees levied on your card by the banks and other financial institutions. Some of the basic charges that you need to be prepared for are annual fees, late payment fees and sometime inactivity charges. The annual percentage offered varies based on various factors. Some of the factors that impact the APR on your card are your credit rating, credit history and the number of years you have held the card.
Most important of all, you should be prepared to face challenges when you apply for your first credit card. it is by far the most difficult to obtain since most banks don't entertain applicants who have no credit history or co-signer to back them.