New Credit Card Criteria Checklist

Are you thinking about applying for a credit card? Here are some things you should look for before applying to one because the last thing that you would want is to end up paying more in fees than in credit.

One of the first thing you should look for is how much is the interest rate and don't be fooled by the zero percent APR for a year then a high APR thereafter. Your interest rate is determined by the lender based on your FICO score so if you get an offer in the mail offering you a high interest rate when you have really good credit then you should rip up that offer and toss it in the trash because you can find a better deal than that. This is also why you should never apply for ANY credit card from department stores because their interest rates are ridiculous. Just stick to the big boys because you will end up saving much more. The only department store cards you should apply for are the free rewards cards but how do you know if it's a rewards card and not a credit card? Easy, rewards cards don't ask for your social security number.

What if you don't have credit or a good credit score? There's not much you can do to get a good interest rate so the next criteria to look at is if there's an annual fee. Why would you want to pay tons in interest and pay an annual fee to even use a lender? That's ridiculous because the lenders make money off from you so why should you pay them to make more money off from you? You're worth more than that so be sure to check if there's an annual fee or not. Don't be discouraged if all the offers you receive have annual fees. It just means that you have to take the initiative and search for offers yourself on the internet because there are tons of offers that fit your criteria.

The next thing to look for is rewards. If you are going to be using your credit card a lot and pay in interest then might as well get rewarded for doing so. You might think a dollar a point is not even worth it but it is because a dollar here and there can add up pretty quick. No rewards? No deal. One thing that you might not know is that most lenders won't allow you to convert your non rewards account into a rewards account because they want you to open another account with them which is good only if you have a high balance in one account so you can open a new account and take advantage of the zero percent interest rate on balance transfer.

All in all, know your worth!