Finance 5 Things to Avoid When Applying for A Credit Card Posted on June 29, 2018 9 min read 0 1,948 Contents1 Avoid: Delinquent Debt2 Avoid: Not Doing A Proper Credit Card Comparison3 Avoid: Being a Co-Signee For Someone with Bad Credit History4 Avoid: Not setting up a savings account5 Avoid: Not Understanding the Workings of a Credit Card We have been reminded time and again about the importance of credit cards. For one, they are tools that can bring huge convenience in our lives, especially in this time of online and cashless payments. But just as with everything else that technology has to offer, it can be a double-edged sword. On the plus side, the perils of credit card use can be avoided with preparation and proper money management. But how does one properly manage a credit card? Well for one, you have to start from the very beginning and ask yourself these three questions: What is your intention in applying for one? Are you sure you are ready to take on this responsibility? Most importantly, how well do you know the rules for credit card application? Learn to avoid the following pitfalls when applying for a credit card. Because when done right, the credit card application process is a quick and easy step towards a world of perks and privileges. Avoid: Delinquent Debt Missed payments can negatively affect your credit score. Whether it’s for loans or credit cards, it will definitely get recorded under your name. Banks have access to several huge credit scoring systems, and they will see your delinquent payments. If you have a credit or loan you haven’t paid yet, settle it first, and make sure you get a bank certificate as proof that you’ve already paid it all. You can submit this on your future credit card application along with the other required documents. Avoid: Not Doing A Proper Credit Card Comparison Getting the right credit card will help improve your lifestyle. Do low interest rate credit cards fit your budget best? Do you travel often? Shop often? Do you want gas rebates for always being on the road? Whatever it is, there will always be the right credit card that can bring huge convenience in your life. It’s very important to find one that fits the purpose you’re looking for. READ How to use a credit card to finally stay on BudgetThe first step is to research and use comparison portals in checking the many credit card options, their details, as well as eligibility and document requirements. And now it’s possible to do that in one website, along with going straight to credit card application. Avoid: Being a Co-Signee For Someone with Bad Credit History Helping someone out in times of need is totally great. But when it comes to lending, you have to be very careful who you co-sign for. Get to know this person’s credit history or borrowing patterns. Because when you co-sign, your name will also be dragged down if the other person runs away from their financial responsibility. People who have co-signed for someone with a delinquent payment will also see this record reflected on their own credit history. This could totally jeopardize your chances of getting a credit card. Avoid: Not setting up a savings account It would be a huge plus on your application if you had an existing savings account. In fact, if you’ve already maintained it for a long time, your bank would even offer you a credit card and it would just be so easy to get approved. This shows that you have the capacity to repay. And most importantly, that you are a financially responsible individual who is capable of setting money aside for the rainy days. Avoid: Not Understanding the Workings of a Credit Card If credit cards are tools, then you are the wielder. It is therefore important that you equip yourself with all the information needed before you commit to this huge responsibility. There will be interests and other charges if you miss the billing cycles. On the other hand, there will also be huge rewards, discounts, and other freebies that will come with your good credit standing. Get to know the important terms and conditions that comes with owning a credit card. It is, after all, an extension of you. How you handle it will reflect on your character, especially with something that is intangible yet very tempting to indulge in.