3 things you should know before applying for a credit card

3 things you should know before applying for a credit card -

Updated: August 4, 2016

Get new credit card can be beneficial, especially if you try to repay the debt without incurring interest charges or want to earn miles so you can plan a vacation. However, before applying for a new credit card, it is important to consider several factors to determine whether you are ready to open one. Here are three you should consider:

1. Know that you register to

The biggest concern you should have when applying for a credit card is that the fees and rates are associated with the card. After all, you are the one who will pay. That is why it is essential for you to do your research to make sure you completely understand what the card costs and offers before you apply.

Some fees and rates you'll want to look for:

April: The first thing you should check is the annual percentage rate (APR ) or the interest you pay on the balance you carry on the map. If you think you have a balance each month, you do not want a card that has 22.99% APR On the other hand, if you think you can pay off the balance within a year or more, you may find -being a card with a 0% intro APR is the best solution for you because you'll pay $ 0 interest for a long period of time, which differs from card to card.

Annual fee: Some credit cards come with an annual fee or a flat fee that you will be charged once a year to keep the card open and active. While many cards waive this fee the first year, you are still required to pay the second year in the future. Although most annual fees are quite affordable and usually offset by the rewards you earn, you should always make sure it is something you are willing to pay. It should also be noted that all the cards have an annual fee if it's something you're not willing to pay, you have to choose a card that does not.

foreign transaction fee: If you are a regular traveler of the world, make sure the card you choose a travel credit card which has foreign transaction fee or fees you'll be charged for making a purchase overseas, charges can be as high as 3% of the transaction and add quickly. That said, if you do not travel abroad often, foreign transaction fees are not something you need to worry.

2. Make sure that you are eligible

Your credit score may take a little bit when you apply for a new credit line, regardless of whether you are eligible. This is especially true if you apply for a credit card at a time. That is why there is no interest in something you have no chance of being approved. Most credit card providers do not guarantee your approval until you actually apply, but they do not provide the minimum required credit - ranging from "excellent" to "poor" - to get approved. The only way to know if you qualify is to check your credit score. While the exact number of credit points will not say which category you are definitely, most maps show this number corresponds to that grade. If your credit does not meet the required score, do not apply to this card because you might not get approved.

You can check and keep track of your scores and credit reports by signing up for a credit report monitoring service - many of which offer free trials. Once you know what your credit score is, it will be much less risky to apply for a credit card because you have a general idea of ​​what you qualify for.

3. Choose a card that benefits you

There are thousands of credit cards to choose from, and many of them offer different kinds of rewards. Of travel miles and cash back low APR, most cards offer a kind of Perk. The key is to find a card that suits your needs. If you do not travel often, it's probably not worth it to get a card that rewards you with miles. On the other hand, if you are a frequent traveler, it might be a good idea to earn miles with your favorite airline or hotel for your next flight or stay is free. If you want a card with great rewards that also provides a free FICO credit score each month, credit card providers such as Discover and Barclaycard are your best bet. For small business owners, a business credit card may be the way to go, because many offer extra cash back or travel rewards on business-related purchases.

Note that if you carry a balance on the card, you should focus one that has a low or 0% APR intro since interest expenses are likely to outweigh the rewards you win. Similarly, if you pay the entire card every month, you should focus on a card that offers rewards. That said, you can still find some cards that offer a long 0% introductory APR and rewards, such as American Express Blue Cash (detailed below) and Chase Freedom.

credit card options are almost limitless, so we've broken down some of the best credit cards to help you decide.

Best Cash Back Card: Blue Cash Card from American Express preferred

With Blue Cash Preferred card from American Express (NextAdvisor an advertiser), you will earn a 6% cash incredible return on your first $ 6,000 of purchases in US supermarkets and 3% cash back at the station and select department stores. American Express is also running a special offer that earns you 5% cash back on up to $ 4,000 in eligible travel purchases made during the first 6 months of membership card - that is up to $ 200 cash back! To top it off, you'll get another 1% cash back on all other purchases. And when you spend $ 1,000 in the first three months of opening the account, you also get a bonus $ 150 cash back. In addition, you will have a 12 months 0% Intro APR on purchases and balance transfers. Although the card Blue Cash Preferred has an annual fee of $ 95, the generous rewards you earn will balance. If you prefer a card with no fees, daily Blue Cash Card from American Express may be a good option for you because it offers similar rewards (including special offers 5% on travel purchases) no annual fee .

The best balance transfer card: Chase Slate

Chase Slate card is fantastic if you're looking to transfer a balance from another credit card, especially that charge you a lot of interest. This is because Chase Slate offers 15 months 0% Intro APR on balance transfers and purchases as well as an intro fee $ 0 balance transfer for transfers made within the first 60 days of opening account (5% after that, with a minimum of $ 5). There is no annual fee, and unlike credit cards listed above, simply "good" credit to qualify for Chase Slate.

The longest 0% APR Citi Simplicity

If you intend to transfer a heavy balance or are considering a purchase you need time to repay, Citi Simplicity is the perfect card for you. With a 21-month 0% Intro APR on balance transfers and purchases, you will have almost two years to pay either a transferred balance or major purchase. Although Citi Simplicity does not offer cash back or travel rewards on your purchases, it will not charge you fees. This is true no annual fees, penalty rates for late payment or late fees - ever! And although you will be charged a transfer fee of $ 5 or 3% of the balance amount of each transfer (whichever is greater), this tax is not a big deal when you consider how much you'll save on interest.

The Best Travel Card: Rewards Capital One Venture Card

The Capital One Venture Rewards Card will earn two miles for every dollar spent on any purchase unlimited rewards. Also, when you spend $ 3,000 on purchases within the first 90 days of opening your account, you get 40,000 bonus miles, which is $ 400 in travel. There are no foreign transaction fees, and you will have full access to the chip technology - one of the safest ways to pay. Although there is an annual fee of $ 59 is waived for the first year.

Best for Credit Not-So-Perfect: Barclaycard Rewards MasterCard

If your credit is not completely spotless, the Barclaycard Rewards MasterCard is the best option for you because you only need "fair" credit to qualify. with the Barclaycard Rewards MasterCard, you will gain unlimited 2 points per $ 1 spent on gas, groceries and utilities purchases and 1 point per $ 1 spent everywhere else . this card is also no annual fee, no blackout dates and no redemption fee. the Barclaycard Rewards MasterCard also reports to all three major monthly credit offices, which is not the case for all credit cards, so you will have the opportunity to build your credit score

the best business card. Ink cash business card

the Ink cash business card is the first option for business owners because it offers generous cash back rewards on all your business expenses and other benefits to its cardholders. With this card, you will earn 5% cash back on the first $ 25,000 spent annually in purchases combined office supply stores and cell phone, landline, internet and cable television services. Also, you have to come back on the first $ 25,000 spent annually in purchases combined gas at stations and restaurants and an unlimited 1% cash back on all other purchases cash 2%. To sweeten the deal, you also get a bonus of $ 200 cash back after spending $ 3,000 on purchases within the first three months of account opening. The Ink Cash Business Card also has 12 months 0% Intro APR on purchases and balance transfers and no annual fee.

Want to know more? Check out our in-depth reviews of credit card for more information and see which card might be best for you.

Disclaimer: This content is not provided or commissioned by the credit card issuer. Opinions expressed here are author's alone, not those of the credit card issuer, and has not been reviewed, approved or otherwise endorsed by the credit card issuer. This content was accurate at the time of this post, but the terms and conditions of card can change at any time. This site may be compensated by the sending credit card affiliate program.