4 Things to Remember About a Credit Card

Credit cards are everyday financial instruments that help make consumers’ lives easier. However, keeping a few things in mind when owning and using a credit card will make the experience more constructive, keeping card owners out of trouble,

Checking Rates and Fees Before Applying

Federal law requires credit card issuers to disclose their fees and interest rates. This information is available in a table on the credit card’s application. Prospective cardholders can look up each card’s annual fee, late fees, APR and foreign transaction fees.

Since even the slightest discrepancy in rates and fees can compound over time, consumers should spend ample time doing competitive research.

Avoiding Credit Card Fees Is Possible

Consumers do not have to live with the prospect of credit card fees, even if they are new to credit. Unfortunately, many beginner cards don’t charge annual fees and late fees don’t come into play unless the user is late.

Foreign transaction fees don’t apply unless the cardholder makes charges outside the United States. However, even if a prospective credit card owner intends on traveling, several options don’t charge foreign transaction fees.

A Security Deposit Makes Things Easier

Getting a credit card with no credit can make obtaining a card difficult for some consumers. Getting a secured card is one way to get a credit card for poor or damaged credit. A secured credit card requires putting down a deposit and credit is usually limited to the deposit amount.

Many card issuers place minimum deposits in the $200 to $500 range and allow cardholders to deposit more funds to receive higher credit lines. Remaining on time with payments will ensure the cardholder will stay on track to qualify for an unsecured card.

Late Payments Are Costly

Missing payment due dates can lead to an avalanche of adverse effects on the cardholder’s finances. For example, late fees increase over time, while a penalty APR can increase rates to unsustainable levels.

The most crucial drawback when paying late concerns the cardholder’s credit. While missing the due date by a day will not affect a user’s credit, missing the payment date over a month will result in credit bureaus taking notice. Cardholder credit scores can start to plummet with consequences on their finances.

Applying Online

Finding a credit card that offers optimal terms for consumers’ needs requires research. Therefore, it is essential to trust a credit card issuer with a proactive approach to educating and informing consumers about its cards.

SoFi is a one-stop financial services provider for consumers’ needs. Customers interested in cryptocurrency that choose SoFi for obtaining a credit card can take advantage of the company’s crypto integration. As per SoFi:

The SoFi Credit Card now lets you redeem points straight into crypto. You’ll earn 2% cashback on all purchases and can redeem it directly into crypto with your SoFi active investment account.

SoFi can help consumers seek information on how to get a credit card that serves their needs while staying out of financial trouble.