When you are planning to apply for a credit card, choosing the best financial institution or a bank is the easiest step to do, but do not be swayed right away because there are several steps that follow in order for you to earn your first credit card.
A credit card is an essential tool for every individual who wants to earn or obtain something that they want, it is also used for other purposes such as for emergency, for loans, and other circumstances related to finance.
If you are applying for a credit card, make sure that you choose the one that suits your wants and needs, do not go beyond the limit of it because you will surely end up covered with debts and ballooning interests. Comparing the different types of credit cards and the things that you should be expecting to happen when you apply for a credit card and what are the necessary things to do when your application is declined.
In order for you to get a good start with your credit card applications after you found the ideal bank or financial institution, you should determine for what purpose you are applying for a credit card. Is it for personal use? Is it for your family? To pay loans? Or just simply buy things that you want to get? This is because the bank will ask you these questions so that they can give you the ideal credit card that can cater to your needs.
To give you a clearer insight on this matter, you should learn first the important steps that you should follow when you apply for a credit card. Below is a list of the four most important things that will help you learn more about the things in making you a responsible credit card owner.
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ANNUAL PERCENTAGE RATE (APR)
APR is actually the total cost of borrowing on the credit card, if you are not able to pay the entire balance off each month, this is its cost but you can compare the APR through identifying different credit cards to determine which one has the cheapest APR but you should also make a comparison of its fees, charges, as well as incentives.
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MINIMUM REPAYMENT
If you fail to pay off the balance in a monthly basis, you are asked by the bank to pay the minimum amount which is usually three-percent of the balance due or it has a higher amount.
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ANNUAL FEE
There are types of credit cards that require its holder to pay an annual fee, this fee is an additional amount that is due which will be on top of the interest of the fee which you have spent unless you made a full payment.
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CHARGES
This is applied every time you overspent with your credit limit. The charges are an agreed amount that you should pay. Aside from overspending beyond your credit limit, the bank will charge you regardless of your location when you fail to pay on time of your regular payment responsibilities. To know more about credit cards, discover about Malaysia credit card promotion.