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How to apply for a Credit Card
Having a credit card can be useful in many ways. You can buy stuff that you may not have the immediate money to buy at that time. But it can also lead to debt if you are unable to pay your bills.
Step 1
Learn about Credit Cards
Credit cards allow you to “borrow” money that must be paid back at a later date. People use credit cards for various reasons. Some have it for convenience; some because they need the money, some credit cards even offer the user benefits such as travel insurance, shopping rewards, airline miles and many more. How credit cards make their money off you is mainly through charging you interest. This is known as Annual Percentage Rates (APR). APR is usually either fixed or variable. A fixed rate APR means that you know exactly how much you will be charged each month (ex: 7.25% interest a month). But fixed rate APR is usually a bit higher. Variable rate APR can be changing every month. Some credit cards charge you an annual fee for the privilege of using their card.
Step 2
Find a credit card
There are many types of credit cards and many who offer them. Before applying for any credit card do your research first. The following is just a few types of credit cards
Rewards Credit Cards – Reward the user for purchases.
Credit Cards for Bad Credit- For people looking to recover from bad credit
Student Credit Cards – For students
Business Credit Cards – For business owners
Airline Credit Cards – Earn flyer air miles
Many banks offer their own credit cards so you can also check with your bank. Make sure that you are aware of the interest rates associated with the card and any possible “hidden stings.
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Step 3
Compare
Since many credit cards are available on the market you should look around and compare cards. You should find a credit card the suits your needs. A few variables to look at when comparing credit cards is: The APR that you are expected to be charged every month. Some credit cards offer introductory APR. This means that for a certain time you pay a lower APR then switch to the normal rate afterwards. The grace period is the time in which you purchase something using your card and the day when interest will start being charged. There are also many fees involved with credit cards such as late fees, over the limit fees, and cash advance fees. Some cards offer rewards for purchasing items using your card. Make sure you take all these variables into account when applying for a card.
Step 4
Apply
You can apply for a credit card online through the company’s website. Though the mail if you ever receive an offer or request to have one mailed to you. Or if your bank offers a credit card, you can go to your bank and apply for one. Before you cat a credit card, the credit card companies must approve you first. They check your credit history to see if you have a history of paying bills late. Some credit card companies approve people within an hour and some take a weeks.
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