The #1 question people forget to ask when they apply for a credit card

There is a smarter way to approach question people forget ask, and it starts with knowing a few key details. This guide covers them, along with tips you can apply immediately.

Key Takeaways

• Does the card have an annual fee?
• Are there penalties for paying for late?
• Worth noting: that is, does the issuer report my card apply to the major credit reporting agencies?
• Do I genuinely have to ask?

Tips That Make a Difference

Even someone new to credit may have a general sense of what they should look for when pull up that solid ole Schumer Box and vet a credit card: What’s its purchase annual percentage rate? And, maybe even more immediately, what type of rewards will I get? : 1 in 5 shoppers are carrying the wrong credit card Most people forget to ask this one question… But there is another question everyone , and credit newbies in particular , should be asking as they scour the fine print.

The answer to that question sounds like a given , of course, credit card issuers report their accounts to the credit bureaus, right? Eh, it’s a bit more complicated than that.

Common Mistakes to Avoid

More importantly, see, creditors essentially have to pay to report to the credit bureaus and, in turn, pull consumer credit files when they’re sussing out whether or not to provide you a loan, and not all issuers can afford to loop in each one. Some may only report to one of the Large Three (Equifax, Experian and TransUnion), and a few may not report at all.

A complete lack of reporting is more common when you’re talking about secured credit cards, which require a cardholders to put down a cash deposit to serve as their credit line. It can also become an issue when you’re an authorized issuer on someone else’s credit card, as opposed to a primary credit cardholder.

Is Question People Forget Ask Worth It?

Remember that but given both of those choices are largely viewed as starter credit , a means for people to either build or rebuild their credit , it becomes even more key to verify that your card apply is going to wind up on your credit reports. : Understanding your credit card How do I figure out if I’m getting credit? An issuer’s reporting practices should generally be listed in a card’s terms and conditions, but, if they aren’t, or you simply can’t find the section, you can call the issuer and ask them directly about whether they report to the major credit reporting agencies.

Secured credit cardholders who demonstrate the ability to apply a card responsibly are frequently offered the opportunity to move to a traditional credit card after some time. (And most traditional credit cards do report to the major credit bureaus.) Authorized users, too, on accounts in solid standing may be afforded the same choice. If your issuer won’t, you can also look into getting a new credit card that does report to large three.

Where the Real Savings Hide

As a rule, just be sure to verify ahead of time if they do so. You don’t wish to blindly apply for each piece of plastic out there in hopes of getting credit, since those applications can generate a hard inquiry on your credit reports, which can hurt your credit score.

This article originally appeared on Credit.com. : Clark’s free credit report guide Common Cents: Credit Reports and Credit Scores 101.

Frequently Asked Questions

How can I save money on question people forget ask?

Compare prices across a few retailers, look for active coupon codes, and time bigger buys around sales events. And, maybe even more immediately, what type of rewards will I get? : 1 in 5 shoppers are carrying the wrong credit card Most people forget to ask this one question… But there is another question everyone , and credit new....

Is it worth shopping around for question people forget ask?

Usually yes. The answer to that question sounds like a given , of course, credit card issuers report their accounts to the credit bureaus, right?.

What should I check before buying?

Read the terms, confirm any code still works, and factor in shipping or returns. Eh, it’s a bit more complicated than that.

Smart Ways to Save More on Question People Forget Ask

• Leave items in your cart for a day; some stores send a follow up discount.
• Pair cashback with a coupon so you save twice on the same order.
• Stack a coupon code with an existing sale whenever the store allows it.
• Sign up for the retailer newsletter to catch first time and seasonal discounts.
• Compare the final price including shipping, not just the headline number.

Final Thoughts

Before you check out, line up question people forget ask against current promotions and any codes you can stack. Small habits like these add up to real savings over a year.

Originally published at clark.com.