You have applied for a credit card on the day and received the debit letter from the bank. Before you sign, there are 4 things you should check!
1) How high is your credit line?
You can think of your credit limit as the highest amount the bank is willing to lend you. It is therefore important that you know exactly how high your limit is so that you do not exceed it. Exceeding your limit can quickly become expensive as you are charged fees.
Keep track of how much you spend by checking your online bank regularly. The online bank gives you a complete overview of how much you have spent and what is available.
Some payments are not recorded immediately, which means that the numbers you see in the online bank are not always updated.
2) How much do I pay in effective interest?
The effective interest rate tells you how much you actually pay for the loan. This includes the nominal interest rate, any fees and the dates of the term payments. Each credit card on the day comes with a different interest rate. The interest rate is dependent on various factors such as cashback, rewards, sends, credit history and a variety of other things.
If you forget to pay your bill for a month, the bank can raise interest rates significantly. It is therefore advisable to check the credit card terms to see what happens if you forget a payment.
3) What fees and fees do I have to pay?
It is important to get a clear overview of the charges and fees that apply to your credit card. Some cards, such as Santander’s fee-free Visa and NE Money Bank’s MasterCard, are fee-free, which means that you do not pay fees for purchases or cash withdrawals.
Here is a list of some of the most common fees and fees you should look out for after applying for a credit card during the day.
- Yearly fee
- Reminder fee
- Administration fee
- overdraft Fees
- Cash withdrawal fee
4) Have you applied for a cashback credit card on the day?
Credit cards that offer cashback on merchandise purchases are very attractive if you shop a lot. Please note that these cards will most likely have a limit on how much cashback you can get each year. It is therefore important to check how much cashback you can get each year.
There are some cards that have no limit to how much cashback you can get but this is usually the case for premium cards.
If you have any questions about the terms of the contract you have been sent, please leave a comment and we will help you as much as possible.