Before you apply for your first credit card…


Credit is a complex financial tool for those who have no idea how to use it. There are several things you should know before you apply for one.

Credit card is becoming very popular among the young adults of the country. They start to apply for a credit card just after they get their first job. As they don’t have proper knowledge about credit card fall into credit spiral and can not build wealth. As time passes they don’t have any savings for any emergency situation. If you are planning to apply for a credit card read this article ahead of your application.
  1. Are you ready to have a credit card?
You have a good job and you are eligible to apply for a credit card do not mean that you are ready to have it. You have to take the complete responsibility of your credit and have to pay your monthly bills at a specific date. Once you miss it will bring a disastrous situation to your personal life. It is really tough to get on track in that situation. 

2. Identify your need for credit card
Do you really need a credit card or you just need this to show your status? If it is the later one does not apply for the card. Each year you have to pay a huge sum of money even you do not use it. Why do you want to give your hard-earned money to banks? So if you do not need this skip this for now. 

3. Know about the interest rates
Credit card is a high interest product for banks. Interest rates for credit card is 20% to 35% in Bangladesh. So you need to be very careful about the card you are applying. Otherwise you may pay a hefty interest to the bank. 

4. Check the annual fees
Every banks in Bangladesh has different annual fees for their various types of cards ( Silver, Gold, Platinum). Some of the card has higher annual fees then the others. As you just a beginner do not go for higher fee paying cards. apply for the lower one. Some of the cards also offer “NO ANNUAL FEE” check this out as well. 

5. Always try to pay more than minimum
After using your credit card for the first month and have your bill at hand try to pay the outstanding or if you cannot do so at least pay higher than the minimum. Otherwise, you have to pay more interest to the bank. 

6. Do not forget the date
Credit cards have specific dates to pay the outstanding or the minimum. Do not forget this dates. Otherwise, you have to pay a late fee. 

7. Do not apply for several credit cards at the same time
There are people who apply for several credit cards at the same time. This creates a negative impact on your credit history and CIB report. There is also a chance of getting rejected by all the banks. 

8. Check the rewards and facilities
Try to check all the facilities and rewards the bank provides. Not all the banks has an affiliation with all the merchants. It is better to check which one do you prefer to shop. Credit cards also provide EMI facilities, check that list as well. 

A credit card is a good friend in time you fall in trouble but it can be your worst friend if you do not know how to control it. There a lot of commercial banks in Bangladesh those are providing credit card services. you can check the following link –
  1. Eastern Bank Ltd.
  2. Dutch Bangla Bank Ltd.
  3. BRAC Bank Ltd.
  4. Standard Chartered Bank Ltd.
  5. City Bank Ltd.

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