Read the Fine Print

Not all credit cards are created alike. While they may all be used to access credit when in need of money urgently, there are those that actually put money back in your pockets as well.

When it comes to finally making that decision to get a credit card, you have to ensure that it is one that will work for you. As anxious as you may be to sign on the dotted line on the credit card application so you can access your line of credit right away, there are a few things that cardholders should examine carefully first. First and foremost, always read the fine print of your credit card application agreement, no matter how tedious it might seem. Reading the fine print, effectively the terms and conditions of the credit card agreement, will help you understand all of the potential financial pitfalls and traps that might beset you as a cardholder.

Interest Rates

The interest rate on the credit card you are applying for should be the first thing you look at when you selecting your card. The annual percentage rate (APR), as it is commonly called, can be fixed or it can be variable. A variable rate means that the bank has the right to adjust your interest rate whenever it wants. And, they do not have to provide you with notice ahead of time. If this is not what you want, you may be better off going with a card with a fixed APR. While the bank can still change your interest rate, it must provide you with at least 15 days notice beforehand.

There are also some credit card companies that offer a no-interest rate introductory offer typically lasting anywhere from the first six to the first 12 months. These special introductory interest rates will vary from card to card on what card transactions will actually qualify for the introductory 0% APR. Sometimes the card offer will apply the introductory rate to cash advances as well, but not often so be aware. Most of the time, these intro rates are applicable on balance transfers and sometimes on purchases as well, but they are not typically offered on cash advances. As a result, you may find yourself paying out a higher interest rate if you take cash advances. So, be sure to read the fine print and find out which card transactions that the introductory rate will actually apply to before signing the application for the card.

Rewards

For the penny-pinchers amongst us, a credit card with rewards and rebates is another reason to apply for a credit card. This type of credit card allows the cardholder to redeem points for frequent flyer miles with his or her chosen airline, which are earned by making purchases. In fact, accumulated points can sometimes reward the cardholder with the full airline ticket. Or, the points may earn cold, hard cash or other rewards.

Repayment

The repayment stipulation is another important factor to consider before applying for a credit card. You need to know the date by which you will have to repay your credit card's minimum monthly fees. Since credit cards are billed in varied pay cycles, it is usually best to choose a cycle that coincides with your payday or when you think that money would be available. This way, you are guaranteed to be able to make your payments on time. Some card issuers will allow you to select your payment due date at the time of application and will even allow you to change it after you begin using it.

Convenience

Online banks may beckon you to apply for a credit card and boast that you can gain access to your credit line in less than three days once it is approved. This may sound great, and it can be if you are in need of money in a hurry, but you need to be cautious when selecting a card online. Make sure you are not selecting a card purely on an impulse. In addition, be aware that you are giving the bank permission to perform a credit check as soon as you complete the online application and click the submit button.

Simply put, the credit card company will need to check your credit history. After all, they need to have a good idea of your financial history in order to determine if you should get a card or not. But make sure to only apply for one card. Just because it is easy to apply online, it doesn't mean you should apply for many different credit cards. If you do, all of the application inquiries will be carefully notated on your credit report. Having too many inquiries within a certain period of time increases your perceived credit risk with lenders and banking institutions and might cause card issuers to deny your card application, negatively impacting your credit rating yet again.

The credit card's terms and conditions should be the very basis of your decision to apply for any card. Above all, take the time to read them very carefully. If you don't understand what is written on the bank's credit card policy, get a financial adviser to help you. Let him or her look over the document and simplify it for you so you understand completely before you make a decision to move forward with the application. Try to avoid getting financial advice on this matter from an adviser that works for the bank that would issue you the credit card.

Banks are making it easier for people to apply for a credit card. They send flyers in the mail to entice you to apply and they offer special promotions online at their websites, all of which contains a great deal of fine print on the card application. By reading the terms and conditions of the card application and all of the fine print on the application, you can avoid any nasty financial surprises in the future.