Applying for a credit card is easy compared to the process of getting other loans or lines of credit. However, this also means it's easier to end up with a credit card that isn't the best fit for your spending habits . What this means is that you need to consider which credit cards you’ll get.

While you’ll want to look at all of the credit card features, such as interest rates, credit limits and grace periods, there are three questions everyone needs to ask when they want to apply for a credit card.

Why do I Need the Credit Card?

This is, bar none, the most important question anyone should ask themselves before filling out a credit card application. Will you be using it to help if you’re in a financial emergency or do you want the card in order to improve your credit score? Or do you want it because it will help you get that new espresso machine you’ve had your eye on?

If you’re only getting the credit card to help you get an item you can’t afford, you should think twice about why you’re applying. It’s worth pointing out that getting a credit card in order to help you buy something expensive isn’t necessarily a bad thing, but you need to make sure that you’re not sacrificing your long-term financial security for short-term pleasures.

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How Will I Repay What I Owe?

The biggest stumbling block for credit card owners, and the way credit card companies make most of their profits, is by racking up credit card debt that takes months, or even years, to pay back. The result is that you’ll be paying hundreds of dollars in interest.

Ask yourself how you plan on paying down the balance on your credit card, whether it’s making a new category in your budget for monthly credit card statements, knowing you have a bonus coming that you can use to pay it off., or even getting a debt consolidation loan. Regardless of what your plan is, make sure you stick with it.

What Fees does the Credit Card Charge?

Finally, figure out what kind of fees the credit card has attached to it. The biggest one to watch out for is an annual fee, which is basically what you have to pay for the privilege of owning the card. However, you’ll also want to watch out for foreign transaction fees if you’re traveling abroad, balance transfer fees if you’re transferring debt from one card to another, and cash advance fees if you plan on using your credit card to get cash.

Other fees you’ll want to pay attention to are:

• Interest rates
• Late payment fees
• Over-the-limit fees
• Returned payment fees

Try to stay away from high fees, especially the annual fee, and figure out if you’re at risk for accruing any of these fees. If you feel you’re at risk for late payment fees or returned payment fees, you might want to hold off on getting a credit card until you’ve improved your financial fitness.

Got questions about credit card fees? We can help!

Bonus Question: Can I Take Advantage of the Rewards?

One of the most attractive credit card options is the rewards credit card. These types of cards usually promise you anything from airline miles to cash back, which is especially appealing when inflation has made everything more expensive.

Before you start filling out that application, though, figure out if you’ll actually be able to take advantage of the rewards. Look at the conditions for collecting the rewards, when the rewards expire and how much you’ll get back for each purchase. If you won’t be able to use the rewards, don’t make them a factor in whether or not you should get the credit card.

Get a Credit Card at First Alliance Credit Union

Applying for a credit card is easy, but you shouldn’t send in the application until you’ve come up with the answers to three key questions. Ask why you want to get the credit card, if you have a plan to pay off your balance and what kind of fees you’ll have to pay. If the credit card you’re thinking about offers rewards, you’ll also want to determine if you’ll actually use the rewards.

If you are looking for a good credit card, First Alliance Credit Union has several available. We offer a common-sense rewards credit card that give you points on every purchase you make, classic credit cards that are ideal for helping you rebuild your credit, and even a business credit card. None of these credit cards comes with an annual fee, and they all offer low interest rates.