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Doing a credit card comparison is a must before applying
If you've never had a credit card before then there is a few things you must know before you should apply for one, first thing to check would be to see if you are able to qualify because you don't want to fill in a lengthly application form only to be rejected for something that you could have known before applying such as do you meet the income requirements, have you been employed long enough (usually 3 months), you are 18 years of age, these are just the basics and most people will be approved should they meet these requirements. Then there is the decision which credit card you should go with? That's why a credit card comparison is a must before you go ahead with it because you could be paying a lot of money to the bank (or other credit provider) if you do not know what you are doing. You should do the following when doing your credit card comparisons:
Check the interest rate
This might sound obvious but some people just jump into the first deal they see, sometimes there is an introductory interest period that is very low and this is to get your attention and to get people to apply however at the end of the introductory period the interest rate could almost double. So it's best to look for a credit card with a low interest rate that is ongoing and doesn't change (interest rates can change occasionally but usually all providers change it at the same time)
Check the fees
Many credit cards have annual fees but there are few that have no annual fee so you if you are smart and keep watch on your credit statement and pay the closing balance every month (next section) then you should not have to pay any fees at all. There could be heavy fees for late payments and if you have a high interest rate but do not pay back anything for the month you spent then you could also be paying a lot in interest. Another thing you should do is check the PDS (product disclosure statement) where it lists all the possible fees and amounts, you should not choose a credit card that has a high penalty for late payments if you might have the tendency to forget to pay it sometimes.
Always pay your closing balance every month
Did you know if you pay your closing balance each month then you will be charged zero interest, the bank cannot take any of your hard earned money. The closing balance is not the total you have spent, it is what you have spent for the previous month, so you do not have to pay the total which is great, the closing balance can be found on your credit card statement or in your online internet banking account, just make sure you pay that exact amount on the due date specified.
Check out our homepage for an update to date detailed credit card comparison so you can get the best credit card on offer.
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