You finally graduated from college, and just landed a job with a good pay.
Suddenly, you find that every credit card company offers you a new card with high credit limit.
But before you decide to sign up for any of the cards, take heed of some facts that you should know about credit card debts.
1.
Interest rate Find out and compare the interest rate charged by the credit card companies.
Some of them might offer low introductory rates, but take note of the normal rate that applies after the offer period ends.
You do not want to end up with high interest rate for a lifetime just because the company offers 0% introductory rate in the beginning.
2.
Charges and Fees You should be aware of the charges that the company would impose.
Late charges and extra fees when your outstanding balance is more than your credit limit are only some of the fees and charges that the company would charge you.
Always pay your bills on time.
3.
Read the terms and conditions carefully The fine prints should not be ignored totally.
Go through the terms and conditions and note any terms that say the company can change the interest rate and credit limit without any advance notice and without the need to explain the reason for the change.
If there is any such statement, check if there is any opt-out option given by the company.
4.
Maintain good credit report If your debt is still new, make sure that your debt is paid on time.
Late or missed payments will generate bad credit report, not to mention additional charges added to your outstanding balance.
This would certainly affect your application for loans in the future.
If you have bad credit report, other loan companies might consider imposing higher interest rate if your loan is approved.
The above facts are just some points that you need to take note before you decide to sign up with any of the credit card companies.
If you feel confident that you can take charge of your cards use, there is no harm in applying and using one.
Suddenly, you find that every credit card company offers you a new card with high credit limit.
But before you decide to sign up for any of the cards, take heed of some facts that you should know about credit card debts.
1.
Interest rate Find out and compare the interest rate charged by the credit card companies.
Some of them might offer low introductory rates, but take note of the normal rate that applies after the offer period ends.
You do not want to end up with high interest rate for a lifetime just because the company offers 0% introductory rate in the beginning.
2.
Charges and Fees You should be aware of the charges that the company would impose.
Late charges and extra fees when your outstanding balance is more than your credit limit are only some of the fees and charges that the company would charge you.
Always pay your bills on time.
3.
Read the terms and conditions carefully The fine prints should not be ignored totally.
Go through the terms and conditions and note any terms that say the company can change the interest rate and credit limit without any advance notice and without the need to explain the reason for the change.
If there is any such statement, check if there is any opt-out option given by the company.
4.
Maintain good credit report If your debt is still new, make sure that your debt is paid on time.
Late or missed payments will generate bad credit report, not to mention additional charges added to your outstanding balance.
This would certainly affect your application for loans in the future.
If you have bad credit report, other loan companies might consider imposing higher interest rate if your loan is approved.
The above facts are just some points that you need to take note before you decide to sign up with any of the credit card companies.
If you feel confident that you can take charge of your cards use, there is no harm in applying and using one.