4 THINGS YOU NEED TO KNOW BEFORE APPLYING FOR A CREDIT CARD




Introductory offers may not be as sweet as you think

Offers such as 0% interest for a set period sound tempting, but make sure you know when your introductory offer ends. Interest rates can shoot up after this period so always check the details and find which card's right for you before applying.

Your APR is not always the best comparison point

Annual Percentage Rates (APRs) are the rate of interest you'll pay on purchases paid back in 12 equal instalments across a year. However, it's difficult to compare how much your credit will cost based on an APR, particularly if you pay off each month. Always compare all product features to make sure you're getting the card most suitable for you.

Credit cards can help you build your credit

Using your card to borrow responsibly and paying on time can improve your credit rating. However, missing payments has the opposite affect to your credit score making it more difficult to access credit in the future.

You can get charged for withdrawing cash

If you withdraw cash on your credit card you'll usually be hit with around a 3% fee on what you withdraw – on top of interest. Paying late, going over your credit limit and using your card abroad all attract fees too. It's best to avoid these unless you're certain there are no charges.

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