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Credit card usage has grown steadily and is becoming a favoured method of payment for a large number of people around the globe due to the convenience and flexibility it offers. To adapt to the high demand of credit card usage, banks try to make sure the application process of getting a credit card is as painless as possible for customers.

While the process of applying for a credit card can sometime be easy, there are still many factors to be considered before applying for one.

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Card fees of the issuing bank  

With the high demand of credit cards, many banks have tried to establish a reasonable tariff with competitive fees. Hence, before applying for a Visa or a MasterCard, make sure you  first do your research about fees and service charges levied by the issuing bank. There are a few common fees of credit cards, such as: cash withdrawal fees, card issuance fees, annual fees etc.

If you are not worried about card fees and just need the flexibility in your life to manage daily expenses, then a credit card would be the perfect fit. However, if you are just planning to apply for a credit card for the purpose of peace or mind or travelling, you should consider the service fees before getting one. Keep in mind that, except for card fees, there are also several other fines such as: late payment fees, exceeding credit limit fees, foreign exchange fees etc. Each bank would have their own regulations and calculation methods for this.

Credibility of the issuing bank

Choosing a reputable and trustworthy bank for your credit card is of the utmost importance. The credibility of each bank comes from their transparency in documents/papers and the commitments provided to customers upon issuing them their credit cards. Before applying for a credit card, refer to your issuing bank’s policies regarding issuance of credit cards to customers.

Interest rates and the process of calculating interest rates of the issuing bank

Before deciding on the bank to get your credit card, you need to know about their interest rates and how they calculate them. Misunderstanding interest rate calculations can put you into complicated situations that make your banking experience unpleasant and disappointing. We highly recommend that you find out exactly the types of interest rates charged by your chosen issuing bank, repayment period and due dates.

Are you financially able to afford your credit limit?

Businesses around the world have made it easy for their employees to apply for a credit card by providing proof of payroll and other required documents. However, what needs to be considered more is the financial ability of people to repay their entire credit limit. This is because banks usually charge high interest rates on credit loans, and your repayments will highly affect your credit ranking. Hence, make sure you are financially capable of affording your credit limit before getting a credit card for yourself, so you would not have to put yourself in the situation of stress over penalties and bad credit ranking.

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This is some basic information to help your banking experience be more comfortable and reassuring when owning a credit card. We recommend considering all the factors above before applying for a credit card.

For your consideration, Timo is currently offering a Timo MasterCard Credit card with flexible installment plans at 1% interest, along with many other attractive special offers and incentives. Find out more information here to know about how to apply and the qualification criteria for a Timo MasterCard.