Important factors to consider
If you can, obtain preapproval or prequalification for a card you're interested in. It doesn't necessarily guarantee you'll be formally approved, but you can receive details on your potential rates, terms and card benefits. This can help you decide which card to pursue, and there is no effect on your credit score.
If perks are important to you, check to see whether the perks of acredit cardoutweigh the costs. If you're sure that you will use the perks, it could make an annual fee worthwhile. But some premium cards have annual fees of $395 or more. Great perks also might be offset by high APRs (Annual Percentage Rates) if balances are carried for more than one month.
Be aware of any high fees or APRs if you plan to use the card regularly for cash advances. A high balance transfer fee might make a low APR less desirable. The same goes for foreign transaction fees or over-limit penalty fees. Always check in advance what fees or interest rates you'll be dealing with.
It’s also a good idea to think about the customer service that will be available. Not all credit card companies provide the same level of care and options. Consider whether, for example, you will have online services and an app tomanage your credit card. You might also enjoy capabilities like: setting up recurring payments, easy viewing and redeeming of awards, setting up alerts, adding an authorized user, ordering a replacement card and checking on special offers.
Expect a "hard inquiry" credit check when you apply for most credit cards. A hard inquiry means a credit card issuer will pull your fullcredit report.This inquiry typically affects credit scores — but it's a short-term effect.
If your application is rejected, you might want to wait a few months before applying for another card. One hard inquiry may not be a big deal in the long run. But multiple inquiries in a short period of time could cause concern for potential lenders.
Have a payment plan in mind
Before you start using your new card, have a repayment strategy in place. Make sure your budget has the surplus to cover your charges. Optimally, you should pay off your entire balance every month to avoid interest charges. Otherwise, balances grow and interest compounds. Know what your budget can handle, then allocate enough to stay ahead.
Security
Don't click on random email or text links to get to financial institutions. When you are applying, verify that you're at the official website for a credit card issuer. Type the homepage address directly into your browser if you want to be sure of your destination.
