Credit Card Applications

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Credit Card Applications

Whether you get mailings or whether you look online, everyone has seen them. We are talking about credit card applications. Although some may look differently than others and some a little longer, there are some very important parts of the application that one must understand before applying for a credit card. Here we will discuss these things and many other important aspects of a credit card application.

When applying for a credit card, it is very important to shop around. Many credit card offers, although from the same issuer, may have many different features that set them apart from each other. Many important points that you must know and understand before applying for a credit card include:

Annual Percentage Rate (APR): The measure of cost of credit, generally shown as a yearly interest rate. The APR is generally one of two categories: Prime Rate, which is an interest rate that will change over time, also known as a variable rate. The other is a fixed rate which does not change for a specific period of time. Also one important thing to remember is many cards offer a no to low introductory APR as well. Low Interest Credit Cards:

Finance Charges: The actually cost of the use of credit or the cost for borrowing money. This is actually any additional fee added to the balance of the loan. You will generally see this added as service fees for a transaction, late fees, balance transfer fees, and/or cash advance fees.

Annual Fee: A flat yearly amount due, much like a membership fee. Fees will vary from many credit card offers given the type and features, while others may have no annual fee at all. No Annual Fee Credit Cards:

Grace Period: The time (usually up to 30 days) after a purchase were no finance charges will be applied. Payments may be made during this time, but afterwards payments must be made in full or in monthly installment period where a finance or interest charge will be added.

Other important application information include:

Customer Service: Look for a 24-hour toll free number. You want to be able to contact customer service any time of the day to resolve a problem or issue.

Privacy Policy: Please read and understand any information listed in the portion of the application. Know if your name and information will be kept private or be used in other means by the bank or issuer. If you are unsure are not know what something means, please get information before signing your name.

Knowing and understanding these important factors when filling out a credit card application can save you time, and ensure you that you are getting the right card.