Whether you're applying for your first credit card or looking for a new one, there are hundreds of options available. Here are a few things to take into consideration to find the one that suits you best before applying.
Why do you want a credit card?
Firstly, think about what you are using your credit card for. This could be to buy things online or on holiday, to pay your bills or to spread the cost of a purchase. Depending on your purchase, you should think about how you plan on paying off what you owe, either in full monthly or by spreading repayments over a period.
APR Rate
Everyone's APR rate will be different depending on your credit score. Some credit card lenders will only give you cards they think you are able to repay, meaning interest free periods and APR rates will be affected by your current income and your spending habits.
Watch out for ‘Representative APR’ as some card providers set your interest rate based on your credit history, meaning that if you have a poor credit rating, you might pay a higher rate of interest and so the APR might be higher than advertised.
Introductory Offers
Some lenders will create introductory offers to tempt you into choosing them as your credit card provider. Whilst some companies may offer interest free periods that look appealing, you may receive a hefty APR rate once that period is over.
The terms and conditions on every card will differ depending on your lender. If you're wanting to make a big purchase on your card, make sure you are able to pay it off within the interest free period to avoid a large APR rate once this is over.
Don’t let it affect your credit rating
Every application will affect your credit rating. There are a few ways you can see what credit cards you would be eligible for without affecting your credit rating, such as using comparison sites such as the Money Saving Expert credit card calculator.
See more on what affects your credit rating.
How to apply for a credit card
There are various ways to apply for a credit card:
online
by post
by phone
at a bank or building society.
For all applications, you will have to fill in a form and the credit card provider will check your credit record with a credit reference agency, to see if you are eligible for a credit card.
The lender will be shown information about how you handle your finances, such as your bank account, outgoings and any other loans you may have. It tells the provider whether you are a good payer and about any court orders you have had in the last six years.
If you have any questions about borrowing money or credit card loans, get in touch with a member of our team, who will be happy to talk you through any questions.