Bad Credit Gone

Before you rush into a credit card application online it’s a good idea to consider a few things first.

1: Find the best credit card

There are lots of credit cards out there and they all probably claim to be the best. The trick is to find the best credit card for you. The best credit card will depend on how you will use it.The perfect card really does depend on your situation; for example, if it’s a backup card then a no annual fee card could be good, those with credit card debts may seek a card with a good balance transfer offer andd low ongoing APR, high flyers might want a Gold or Platinum card with extra touches while those who always pay bills in full each month may choose a rewards credit card. From this information it’s now clear that the best credit card for you will depend on your financial position.

2: Understand the credit card offer

Once you have figured out the type of credit card may be best suited to then you need to compare credit cards from the same category. Look for the following main features:

Purchase APR: This is the annual interest rate that you will pay on purchases made on the card. When you don’t pay your bills each month and get charged interest the lower the credit card apr the lower your interest costs will be.

Balance Transfer APR: This the credit card APR charged for balances transferred from other credit cards or store cards. Intro rates are often as low as zero percent for a fixed period. Make sure you check costs of any transfer fees and what interest rate the balance will default to once the intro period expires.

Annual Fee: Some credit cards charge an annual fee or have a fee that is waived in the initial year or two but will kick in down the track. This adds to the cost of the card. Some exclusive rewards cards have higher annual fees but make sure that the rewards will outweigh any costs in fees and interest.

Interest Free / Grace Days: Most cards offer a certain number of days between a purchase being made and interest kicking in. The result is that if you pay your bill in full each month then you never incur any interest charges. If a card does not have a grace period then interest will be charged from the day a purchase is made. By the time you get the monthly bill then items might have a months worth of interest already applied. Seek out cards with a long grace period, up to fifty five days is good and cards with no grace period should be avoided.

Rewards: Rewards come in different shapes and sizes. Do the math and attempt to do a rough calculation of the value of rewards you will receive for each dollar spent. If your a big spender then check the small print for the rewards program to see if they impose a points or cash-back limit each month.

3: Have the right information ready

Applying for a credit card online is probably the quickest and easiest way to apply. Online approvals are faster than for applications made via post or phone and may even by instant if you meet all the critieria.

Before you apply online then make sure you have the required information to hand such as:

Personal details: You’ll need to provide personal details such as contact details including your residential address for past few years. If you have moved around then make sure you have your past address details handy.

Employment details: You will need to provide details of your employment status, wage and contact details for your employer. Your Human Resources department is normally the best section to provide details for employment and income verification.

Identification: You may need details such as your driver’s license or social security number to hand a verification method

Balance Transfer Details: If you are doing a balance transfer then you will need details including the card number, issuer and balance of any credit cards or store cards you wish to have the balances transferred for.

Finance and Loan details: Depending on the lender they make ask for details of the other credit cards and personal loans you hold. Normally your will be asked for the card issuer, current card balance and the credit limit.

Every credit card issuer asks slightly different questions but covering these basics should ensure your application for a credit card goes as smoothly as possible. For more information on credit card features such as credit card apr details online.

Article on credit card application is by Richard Greenwood of finance comparison website creditcardapr.com.sg