It is important to choose the right credit card to meet your needs. Using a credit card can cost more than you think, or you may miss out on useful features.
Choosing the right credit card
To find out which one is the right credit card for you, it’s important to think about how to use it.
How do you plan to use your card?
You want to use it for your day-to-day expenses and will always pay the balance in full.
You want to spend it on your card, but you can’t always pay the full balance every month.
You hope to reduce the cost of your existing borrowing.
You want to use your card abroad.
Focus your search on cards that offer rewards such as cashback or air miles.
Look for a card that charges 0% for purchases, or focus on lower APR cards, if any.
Search for a %0 balance transfer card. Or if you plan to spend on the card as well, see if you can get a deal that offers 0% for transfers and purchases.
Search for a %0 money transfer card. These allow you to pay cash directly into your bank account and can help you pay your overdraft.
Look for a card specifically for travelers. Be sure to look at which exchange rate and what fees to charge for foreign transactions and cash withdrawals.
Credit cards offering rewards
Some cards come with benefits or rewards that include:
- air shaft
- free travel insurance
- a concierge service, such as a personal assistant on the phone – everything from hotel reservations to ordering food for home delivery.
They usually come at a higher interest rate or an annual or monthly fee.
If you’re not sure that you can fully repay the balance on your card every month and never exceed your limit, these are unlikely to be right for you.
Be sure to check the terms and conditions of rewards added to the credit card. For example, restrictions on using air miles, travel insurance does not cover you in all cases, and other benefits that you can get cheaper by shopping.
%0 promotional offers
Card providers offer 0% interest for a certain period of time for what you buy, balance transfers (unpaid credit you transfer from another card) or money transfers (transfer of money to your current account).
In some cases, the 0% offer may be on both purchases and balance transfers, but usually only on balance transfers. The entry period may also be different for purchases and balance transfers. Carefully check what is on offer.
0% on purchases
a 0% purchase offer is a cheap way of borrowing when you need to buy something big.
However, make sure you can pay in full before your entry period ends, otherwise you will start paying interest at the normal APR rate.
You may no longer be able to transfer the balance to another card at that point, especially if your credit rating has dropped by the way, as the same offers may no longer be available.
0% interest on transfers
If you are transferring balance or money from a credit card to a 0% interest card, you usually have to pay a fee of around 2-4%, so you need to take this into account.
You also need to check when the 0% interest period will expire and you will have a plan to pay the balance at the end of this period.
If you don’t make at least minimum payments along your card balance, the 0% offer may be withdrawn, which could also affect your credit rating.
Credit cards to be used abroad
There are big differences in fees, fees and exchange rates offered by different credit cards when you use them abroad.
Credit generator cards
One way to recreate your credit history is to use a credit generator card.
They tend to demand a higher interest rate and come with a lower credit limit. Therefore, in order to take full advantage of these cards, it is important that you can pay the balance in full every month, without paying too much interest.
How to compare credit cards
If you don’t plan to repay your balance in full every month, you’ll need to compare the overall costs very carefully.
Check what you’ll pay each month
Rakamlar korkutucu olabilir. %0’lık bir anlaşmanız yoksa veya kredi kartınızla ödediğiniz başka bir yerde daha pahalı kredi taahhütleriniz yoksa, her zaman ay sonunda borcunuzu ödemeyi hedeflemelisiniz.
Yapamazsanız, toplam maliyeti düşük tutmak için ödeyebildiğin kadar ödeyin.
Kredi kartı başvurusu nasıl yapılır?
Check your eligibility first
Use credit card eligibility checker before applying for a credit card. They give you a better idea of whether you’ll be accepted for certain cards and won’t affect your credit score.
There are several ways to apply for a credit card:
- You usually fill out a paper form that you can get from the bank that offers the card.
- Online – you fill out a form on the web. Some documents may be sent for you to sign and send back in the mail.
- From a comparison site that shows you a number of opportunities directly and allows you to apply directly
- In-branch – someone at your bank can help you with the application. You usually have to make an appointment.
According to the law, pre-contract credit information in a standard format known as SECCI (Standard European Consumer Credit Information) and a loan agreement must be given that you must sign electronically or on paper.
In addition, an adequate explanation of the basic conditions and risks must be made so that you can understand what you are taking. If in doubt, ask questions.
If the website has FASHES, but they don’t cover the specific question you have, ask the lender directly.
The downside of applying for a credit card – it can affect your credit rating
If you’re shopping and comparing various loan offers, make sure you don’t apply for a loan without deciding on the best deal.
Each time you apply for a credit card, it’s noted in your credit file.
If you do too much or your applications are rejected, it may indicate that you are in financial difficulty, which can damage your credit rating.
This can lead other lenders to reject an application or raise the interest rate at which they are prepared to lend.
If you want to know if you are eligible for a card or the likely price you are offered, ask the card provider if they can do a ‘bid search’ or ‘soft search credit check’, also known as a ‘eligibility calculator’. This search doesn’t leave a trace on your credit file instead of a reference search, which means.
If they refuse, carefully consider whether you want to proceed.
Also, if you are offered an offer, check if it is guaranteed.
Some offers may only be possible eligibility or price indicators. Most lenders reserve the right to change their mind if new information emerges.
Increase your chances of getting a card
To increase your application’s chances of being accepted, follow these steps:
- Cancel cards you’re not using.
If your card application is rejected
If the lender rejects you on the basis of a credit check, it must tell you and provide you with the contact details of the credit reference agency they use.
You can then contact the credit reference agency for a copy of your credit file. It’s always a good idea to ask the lender why your loan application was rejected.
If there is something wrong with your credit file, talk to the credit reference agency and contact the credit provider to get it right if necessary.