Receiving an offer for a credit card in your mail box may sometimes make one feel ecstatic, especially if its the first offer from a financial institution/bank. Read this list o’ 5 to understand what points should be kept in mind before accepting such an offer.
- Calm down: Yes, receiving credit card offers, as mentioned earlier, may make you feel very excited, but calm down. Take some deep breaths and sit down in peace. After that is done, read the remaining 4 points to know what should you do next;
- Make sure you are matured intellectually to respect credit cards: Credit cards in the hands of a mature-minded individual is a great asset and a great tool. The same cannot be said for an individual who may not respect credit cards. Such individuals, who may not be matured intellectually, may end up overspending and falling in expensive debt (credit card debt is expensive). Make sure you can handle the power of a credit card that has been bestowed upon you;
- Understand chargeable interest: Credit card interest rates are complex in nature, and are very high. Make sure you understand the interest system that your credit card company follows. Understand when does interest calculation start, how much is the interest, the compounding factor, etc to be fully aware of what you are being offered;
- Understand payment period and conditions: Payment period for different credit cards are different. They may depend on several factors, like the day the card was activated, or the day some transaction was made, etc. Make sure you understand these conditions clearly. Also, ensure that you understand the conditions attached to making part-payments (if you ever intend to pay in parts for some purchases), the interest levied on such part-payments, etc;
- Read fine print carefully: Caveat Emptor – Buyer beware. This famous saying probably explains this 5th point perfectly. Always know what you are getting into. Read through the fine print (the small text that is hard to read) to completely understand whether the offer is something that you would like to accept.
Good luck, and thank you for reading!