Applying for a credit card has never been easier thanks to online applications. All you need to do is complete the online application form and submit it online. Surely, applying for a credit card does not require a lot of effort nowadays, yet there still a possibility for mistakes. If you are not careful, some mistakes can cost you dearly. If you want to make the most of your credit cards, steer clear from the following mistakes while applying for a credit card.
Applying for Too Many Credit Cards Too Soon
While it might be tempting to apply for multiple credit cards to enjoy more benefits, credit card issuers don’t look favorably on multiple credit card applications especially if it’s done within a span of few days. If you apply for several credit cards every few days, your chances of getting approved go down with each subsequent application. Hence spacing out your credit card applications will not help your odds of your application approval but will prevent you from taking on a large risk of credit card debt.
Not Reading the Credit Card Terms Carefully
Visit the credit card website and find out the interest rate and fees instead of just relying on the name of the credit card or the initial advertisement. As a norm, credit card issuers are required to display the cost information on every credit card offer.
Applying for the First Credit Card You See
Although a certain credit card commercial or a pre-approved credit offer in the mail may seem like a great deal, it’s important to do a thorough comparison before applying for a certain credit card. There are numerous credit cards available in the market today. Hence, never settle for a credit card without looking at other available options.
Choosing a Credit Card Based on the Initial Benefits
Some credit cards lure customers with initial benefits such as signup rewards bonuses, no annual fee in the first year, introductory interest rate or double rewards. While the initial period with the credit card may be rewarding, it’s important to consider what the card will cost and benefit you in the second year and beyond.
Assuming Your Application is Going to Be Approved
A high income or a great credit score is not a guarantee for the approval of your credit card application. Factors like a high level of debt or too many recent applications could lead to your credit card application being rejected.
Applying For a Credit Card with Terrible Terms
Everybody wants to apply for a credit card with the lowest interest rate, amazing rewards and no annual fees. If you have a good credit score, you may not have a problem securing a good credit card. However, even if you have a bad credit score, that doesn’t mean you have to accept a credit card with an extremely high-interest rate or high annual fee.
Not Shopping Around
When it comes to credit cards, the market is teeming with choices. Hence, its only prudent to look at a few options before making the final decision. An online search is the easiest way to find and compare credit cards from various credit card issuers based on important factors such as rewards or interest rates.