|
Regular payments of your student loans and credit cards will
help you establish a good credit history. Having a stable
credit history will open up credit availability. Take into
account your spending pattern and choose a credit card after
considering different applications and reading the terms and
conditions thoroughly. This will help you to get a credit
card that suits your needs and will impact your credit report
positively. Choose a suitable card with least rates and charges.
Some things to consider before you apply:
Find out the Annual Percentage Rate (APR). Sometimes the
initial rate charged is low, find out what they charge and
whether they will increase it considerably after a period
of time. Ask if they charge any annual fee?
If you are planning to use the card for cash withdrawals ask
about the fees charged for this service.
What is the penalty for late payments? Is a one-time fee charged
or does the APR also increase when a late payment is made?
How are the finance charges calculated? Even with a low APR
you may end up paying more depending on the calculation of
their finance charges. Be sure you understand billing cycles
before you apply, so that you don't end up paying more monthly
fees than you expected.
Inquire about any special features and programs to see if
they fit into your lifestyle. Be careful not to have too much
revolving credit as it may affect your credit rating. Some
lenders may view all the extra credit available as an opportunity
for you to exceed your limit, which may hurt your credit rating.
It is wise to maintain just a few revolving credits so that
it helps you get the loans you need without any hindrances.
|
