Credit Card: Basic application questions

Does this card have an annual fee?

Don’t despair if the answer is yes. Some of the most lucrative rewards cards charge a modest annual fee. It’s worth paying if you’ll be spending a lot – and earning a lot of rewards.

What’s the interest rate?

Make sure you know whether the rate is introductory or not and whether they’re quoting the rate you’d actually get, or just the lowest possible rate you could get if your credit score is good enough.

What is my credit limit?

This is a number that you can appeal. Ask for more if you think you’ll need to run more through the card at any given time.

What is the fee if I’m over the limit?

It shouldn’t be much more than $35 or $40.

When is the first date that you will consider raising my credit limit?

They should let you ask for a raise in six months or so, certainly no more than a year.

What is the late fee?

Again, no more than $35 or $40. Most companies copy what their competitors are doing here.

Is there a grace period before charging the fee, say if my payment arrives within 24 hours of the deadline?

A few companies still do this, but don’t count on it. And push the deadline at your own risk.

Can I change the deadline, say to make it five days after my second paycheck of the month or something?

Some companies offer this. It’s a cool feature. Definitely ask before you apply for a card if this is something you’d like to do.

Do you have the ability to automatically yank money from my checking account each month, so I don’t have to remember to pay you?

Most major card companies do this now, though you sometime have to ask on the phone to figure out how to set it up. After all, if everyone paid this way, the card companies would never earn any money off late fees.


This article was taken from: filife