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What are three most vital questions to ask a Bank before you sign up to a credit card?

Choosing a credit card to suit your particular needs is a very difficult process. This is particularly true in the current financial climate, where financial stability is at a premium. Furthermore, there are numerous reports of credit card companies raising their charges with short notice, leaving the consumer in limbo. So when it comes to the decision, what are the most vital questions to ask a bank before you sign up to a credit card?

Firstly, you need to know what the introductory rate of the card and the stipulations that are involved. It is very common for credit card companies to offer a highly enticing introductory rate of 0%. However, the period in which the 0% introductory rate is applicable can vary so it is important that you know how long you have to take advantage of this rate. In addition to this, you often have to complete a balance transfer within the first 60 days of opening the credit card to be able to benefit from the small introductory rate.

Secondly, it is imperative that you find out what the interest will be after the introductory rate. Most credit card companies offer a very similar APR rate and there will be very little different at first. Unfortunately, some companies offer to fix this APR for a long period of time whereas other companies can vary their APR quite wildly after only a short amount of time. It is important that you clarify this as some consumers can find themselves having no choice but to accept a significant increase on their interest rate if they are not careful.

Finally, it is important to ask if there is a limit to the amount you can put on your credit card as this can differ greatly between the different credit cards. There can be some very hefty charges if you find yourself going over the credit limit, so to save yourself any hassle, ensure that you know this limit and always allow yourself an amount of breathing space with it. Also dont forget that if you need debt advice, it is always worth seeking this from professionals.