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Research: Factors to take into consideration while applying for credit cards -

Credit accounts are being thrown away by banks these days. They are being given to all and sundry with scant disregard to check for their ability to pay back. With the advent of telemarketing, everyone with a phone can now get a credit card. But do not fall for the fast talking sales man on the other end of the line. Always do some research and spend some quality time to find out what you exactly need and what you can get from the market.

The following are some of the things that can help you make a better decision while looking for credit cards.

  • Always shop around for a good credit account before settling for one. Look in the internet as there are a number of third party websites which offer a comparative look at all the different credit accounts from different banks on the same website. This can save you a lot of time. But always double check to see whether the offer exists on the banks original website.
  • Do not fall for reward blindly without looking at other features in the credit card. A lot of companies offer spectacular rewards for just opening an account. But do be aware that most of these will have some clause. For example, if you get a free vacation package for two in Bali, you will later realize that either its monsoon there or that you will need to buy plane tickets back home from there.
  • Look for low interest rate credit cards. If you are going to be making a lot of purchases and are not going to be able to pay back the full amount over the next year or so, go for low interest cards. These cards will ensure that you do not go bankrupt paying interest on borrowed money.
  • Look for higher credit limits. If you intend to buy large gadgets or consumer electronics like television or refrigerators, you need a higher credit limit. Or if you need the cash urgently to pay off a course fee or some debt, you need a higher credit limit. But do be aware of the fact that you need to pay it back somewhere down the line.
  • Look for points based reward system. This is the simplest reward system which is the most well paying with the least number of hassles.