Once you have chosen the right card for you, you can maximize its benefits using online tools like Barclays Money Tools (available for everyone who has signed up to Barclays Online Banking), and smart budgeting.
Consider the following factors before applying for a credit-card
Although you may be eligible for multiple credit cards, it is a smart idea to look at all options and make sure that you are choosing the right card for you. These are some things you should consider before applying.
Find out what your credit score looks like
Banks and lenders are interested in your credit score. It shows how much credit you have and how much you use each day. This shows them how responsible and punctual you are when it comes to repaying your debts. Equifax and Callcredit provide credit ratings for the United Kingdom. Here’s how you can check your credit score if you don’t have one.
Higher scores indicate a better offer.
Higher credit scores may offer you more options when applying for credit cards. If you have debt, you may pay less interest on a credit card that has a lower APR. How to improve your credit score.
Credit reference bureaus may believe that you are financially troubled if you submit too many credit applications within a short time. If your credit score drops, future credit applications could be denied.
Use eligibility checks.
Before you jump in to apply for certain cards, make sure to run an eligibility checker. This “soft search” does not affect your credit score.
After you have established your credit score, you can now consider how you will use your first credit card. You may choose to get a different type of card depending on how you plan to pay down your debt each month.
You must repay all credit card debt before the grace period ends. After receiving your monthly statement, this is the time that the lender gives you to repay your loan.
Credit card debt means that you will owe a percentage, or the entire amount of a previous payment in the next months.
Each credit card comes with an interest-free period where you can pay off your debts without any interest. Some credit cards offer an additional interest-free promotional term in addition to their usual interest-free terms. This means that you won’t be charged interest for any amount you owe, even if you owe money.
You will be charged interest if your card has not been granted an interest-free promotional period or it has ended. It is important to fully understand the fees and interest associated with your new credit cards.
Which card is best suited for you?
If you pay your bills on time, you can make a profit with a Rewards card. Sometimes, these companies offer points that can be redeemed at large merchants to compensate you for using your card. They may have a higher interest rate than other credit cards. You may be able to benefit if you pay your monthly balance.
If you are new to borrowing with a credit card, read our credit primer.
Calculate how much money you spend each month, how much income you make, and how much savings you have. How will your new credit card payments fit in with your financial picture? Barclays Budget Planner will help you calculate your monthly discretionary income and allow you to see how repayments fit into your other monthly obligations.
You can reduce your chances of missing a payment by setting up an automatic debit to pay your credit card account. As long as there is enough money in your bank, you will be able to cover the entire amount. You can choose the due date for your Barclaycard bill through Online Servicing. There are limitations.
Although it may seem tempting to request a large credit limit to increase your spending power, this could reduce your chances of being approved by the lender.
It’s best to not sink so low that you don’t have enough credit to make ends meet or stay within your credit limit. You should not set credit limits that are too high or it could affect your chances of approval.
Online Servicing allows you to review your Barclaycard credit limit, request an increase or decrease, and can be done through the Internet.
It doesn’t take long for your credit card statement, but you can see how much you have spent, how much owe and how close you are from exceeding your credit limit.