5 Key Choices to Make When you Apply for a Credit Card Online

With over 35 credit card issuers in Australia it is no surprise that there are many choices to make when you are looking to apply for a credit card these days.

Of course, with personal finance sites aggregating the best deals for you, it's made it easier for you to compare and choose credit cards and then apply online, but you still have to make a number of key choices. Here are 5 of the most important:

1. Transfer a Balance or Not?

If you have existing debt(s) on other credit cards at high interest rates, it can be highly beneficial to consolidate those debts onto a single card at a lower rate of interest. If you are looking to apply for a credit card online that is offering this feature you may find a low or even 0% balance transfer available for between 6 months and 15 months, after which time the interest rate may be charged at the cash advance rate. With these cards it's very important to pay back the full balance within the introductory period.

2. Frequent Use Card or Occasional Use?

How often you intend to use your new card will help determine if you apply for a credit card with rewards, a low annual fee and other features. For example, if you only intend to use your card infrequently for online purchases then a great rewards scheme for shopping at major high street stores doesn't help you much. Also if you are only using the card a few times per year you will probably want to avoid paying a high annual fee, whereas if you are using it daily the annual fee won’t be so much of an issue.

3. Overseas Use or Not?

If you intend to use your card overseas frequently you will want to apply for a credit card that is light on charges for using overseas ATMs and for paying for goods and services overseas. There should be a full list of fees available on the card issuer's web site.

4. Are You Approve-able?

When you apply for credit card online you want to make sure that you are approve-able first! That relates to your credit history and possibly your income and age. There are stipulations that a credit card make as guidelines for approval. Once you have read these then choose a card that you are likely to be approved for as denied applications will show up on your credit report and are not helpful for your credit status.

5. Can You Pay the Debt on Time?

If you are confident you can clear the debt each month in full, by a given date, then choose a card with a good interest-free period that allows you to pay no interest for, say, 44 or 55 days. This way the APR doesn't even matter as you will never pay any interest.

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