How to Apply for a Credit Card

A credit card can prove to be a great asset in time if used wisely. Some people shy away from applying for a credit card because they have seen some on or the other burn their fingers by misusing the card and running into a debt trap they found pretty difficult to get out of. However, a credit card can be of great use if you use it, only an in emergency that is if you are not a big spender. A credit card is ready cash when you need it most. So don’t go by others opinions on a credit card if you follow some simple rules of credit you will never run into bad weather with your card. So, if you are planning to get yourself a credit card here is how to apply for a credit card.

Unfortunately credit cards are not really handed out like candy, contrary to popular belief, you do have to apply and qualify for a credit card before you get one. Fortunately for you there are many simple and fast ways to go about this. You can apply online, over the phone or send in your credit card application by mail. A point to remember is that when you apply for a credit card you will be required to divulge some very personal details. So, ensure that you are speaking to a credit card company employee and not just any one representing the company, they can misuse this information like selling it to marketing companies. Al credit card companies require you to give them your social security number to enable them to verify your credit history. So, if you have bad a bad credit history you should try the various ways to improve it before you apply for a credit card because an application for a credit card that is turned down will only worsen your credit history.

Do your homework
Before you decide on which credit card you want to apply for do some research on the charges that come with the card. Different cards have different charges such as the interest they charge and the annual fee for the card. Many credit card companies waive the annual fee entirely and some just waive it for the first year you hold the card. The Annual Percentage Rate or APR is also of prime importance. Choose the card with the lowest APR and you will be saving a lot in the long run.

Rewards Program
Check out the rewards program and the bonuses the companies offer. Many credit card companies offer 5% cash back on every transaction you carry out through your card. This could lead to a huge savings for you if you do all your purchasing with your card. However you should be very prompt with your repayments when the bill arrives. Pay off the entire sum if you can but never settle for less than half the bill amount.

Interest free period
The next thing to look for is the credit period the card is offering. Some cards offer as little as fifteen days credit on their cards. This is no deal and will finally leave you with a big bill to clear. The companies that offer 50 days or more credit, this means that from the date of the bill you will be given that many days to clear the payment before the company begins to charge you interest on the outstanding payment.

Credit Limit
Next is the credit limit, which should never be too high as this is the proverbial carrot the credit card companies use to lure you to spend big time. Always go for the lower credit limit cards and you will leave yourself less of a chance to get caught in a debt trap.

Once you know where to apply and how to do your research you will know how to apply for a credit card and choose the best one to suit your needs.

Source by Mujahed Ali

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