The UK economy witnessed the most unusual thing in the year 2004 when the people were charged 269 billion Euros to the credit card and 268 billion Euros by cash. What was once a surprise is the reality of now. The Brits love to use plastic money, and it has quite evidently become the most used payment method, owing to the accessibility and security that comes with it.
A credit card, issued by your bank allows you to get in a revolving line of credit. Each card comes with a predetermined limit of credit that depends upon the creditworthiness of the person. A credit card eligibility checker can help determine the creditworthiness, even before applying for one. A credit card allows the holder to make purchases within the credit range, and then pay off the credit after a stipulated time, along with interest charges.
What should you keep in your mind before getting a credit card?
Availing a credit card can be crucial in determining the credit score of the user. It becomes vital to go through the information before getting one. Here are a few things that must be kept in mind:
Annual Percentage Rate (APR)
The APR or Annual Percentage Rate is the overall cost of the card that a user has to bear. The rate can be an excellent place to begin the comparison of credit cards. It assumes that the credit card holder uses the entire credit limit on the first day of the period and then repays it in monthly payday loans. It also takes into account the interest rate that is applicable once the introductory period is over. The user can look out for their spending pattern, cash advances, balance transfers, and the duration of the introductory offer to see if the APR is suitable or not.
While a majority of lenders advertise a standard rate, they don’t always charge the same. Many of the banks and other banking institutions base the interest rate depending upon the credit history of the borrower. If the person applying for the credit card has a poor credit history or is applying for the first time and has a limited history, the interest rate might be on the higher end. It is best to confirm if the lender is charging the same rate as everyone or if it is higher in your case. Poor credit history can also lead to rejection of the credit card request, and it is best to know where you stand by assessing the chances from a credit card eligibility checker.
The bank charge fees from the credit card user in case of late payments, returned payments, or even when the credit limit is exceeded. APR doesn’t include this fee, and it must be taken into account when choosing the right credit card.
Credit cards come with a wide array of benefits like cashback offers, free travel insurance, air miles, and concierge services like personal assistants. While these additional benefits tend to lure the users into getting the credit card, they might not realize that it comes at a price. The banking institutions tend to charge additionally for these benefits, giving a hike to the interest rate or monthly charges.
Amount due every month
Lastly, it is crucial to know how much total amount you will be paying at the end of every month. A credit card eligibility checker can ascertain if you can pay the amount every month depending upon your current income and spending pattern.
Balance transfer offers
A credit card allows the user to transfer the debt of one credit card to another, but they have to pay a fee for it. Some cards might come with a 0% balance transfer with a smaller period to transfer, and others usually have a 3% transfer fee with a more extended period.
The lenders tend to advertise the introductory offers in such a way that it lures the users into applying for the credit card. While the offers might be attractive, it gets important to note the duration of the introductory period before signing up for it.
Who is eligible for a Credit Card?
The eligibility criteria for credit might differ from bank to bank, and using a credit card eligibility checker can help determine if you are eligible. To be eligible for a credit card the applicant should satisfy the following conditions:
The applicant must be 18 years or older when applying for a credit card. Some banks have a 21 years minimum age limit to apply for a credit card.
They must be employed and earning a predetermined amount. The amount of income required may vary from bank to bank.
The credit history of the applicant must be satisfactory. A credit card eligibility checker can help determine it with ease.
The applicant must have a savings account in their name.
Why use a credit card eligibility checker?
Limited or poor credit history or not meeting the criteria specified by the lenders can lead to a refusal. While the users can apply time and again for the credit card, a refusal by the bank is a definite way of adversely impacting your credit score. It might further reduce the chance of the user to get a credit card or loan in the future as well. In order to protect the credit score from being affected and reducing the chances of getting credit, it is best to use a credit card eligibility checker before applying.
The credit card eligibility checker aids the users who are applying for a new credit card. It takes into account the parameters pertaining to the soft credit check of the applicant and helps determine if they are eligible for getting a credit card. The user enters the personal details, including their UK address history, along with the annual salary, any other income and the total expenditures. The software then produces a result on the basis of this information and tell how likely they are to be accepted when they actually apply for a credit card. While the results of a credit card eligibility checker are not always 100% accurate, they offer a realistic view of the chances of getting a credit card. It can also give the users a list of credit cards that they are eligible for and can easily get approval for. The user can then choose the most suitable credit card depending upon the needs and spending patterns and apply for it. If the bank approves of it, the applicant can receive the credit card within 5-7 working days.
If the results of the credit card eligibility checker do not show any credit cards based on the information filled, the user ought to work on improving and expanding the credit history. Making regular payment of loans and meeting the minimum criteria for a credit card can assist in getting a satisfactory result on the credit card eligibility checker.