3 Top Essential Tips to consider before applying for Credit Card

Credit Card is valuable as it offer benefits such as reducing financial burden by spreading the cost, purchase protection, building credit history to mention few if properly used and managed.
Before submitting an application to apply for Credit Card, it is essential to check some things as precaution to ensure that the application is not rejected. (Rejected application will have negative impact on your credit ratings and in turn make it difficult to get accepted in future because every time an application is made the provider makes a background search it leaves a mark on your history.

This article details things to do before applying for Credit Card.

Ensure that you are on the voters register

This is because credit referencing agency regularly use the electoral register to check your name and address in order to counteract fraud. If your name is not on the electoral register, provider might refuse you. You can register to vote online by visit About Vote or if you are in UK, if you are in other country, . Check with you local council to see if you are on the electoral register.

Check Your Credit File

It is advisable to check your credit history or ratings to ensure that all the information on your record are correct. The credit agency always holds a file that contain information such as your names (these include, you previous name you are known as if you have filed one), the current and previous addresses that you have lived in, previous searches, details of all provider that you have credit with (phone, bank etc.), Links, public record information – including County Court Judgements, bankruptcy and individual voluntary arrangements etc. If you noticed any discrepancy, you will need to notify the provider to put right the wrong details. You can do this by contacting one of the main credit reference agencies Equifax, Experian or Call Credit
Join over a million customers who’ve already got their free for life Noddle credit report.

Compare Credit Cards

Having confirm that your details are correct on your credit record, it is time to compare credit cards using any of the comparison sites to ensure that you are getting the best, balance transfer, cashback, reward, APR, purchase, etc.
If after you checked your record, you discovered that the ratings is bad, there are cards specifically designed for those with poor credit ratings. The downside to this is that they usually come with a much higher interest rate of 25 or 40%.

As mentioned at the beginning, Credit Card can be a valuable tool if managed well, if the credit card balance is not completely clear at the end of the 0% purchase period, you would be charged interest and if care is not taken, this can accrue and get out of control and take a long time to pay off, it can even lead to repossession of one’s property(ies). So it is advisable to plan to pay off in full each month and do not use the credit card if not necessary.

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IT Consultant/Architect at Alpha Consulting Holdings Limited
I am an IT Consultant/Architect, freelance writer and blogger.
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