Understanding Credit Cards And What You Need To Know Before You Get One

Your first credit card application isn't all that hard

, you can find an application in a number of places. Try at a bank or credit company. Failing this you can always go online.

You don't need a lot of information or documentation either. Some very basic information will be sufficient to complete your application. You'll need to include your name, age, employer, and annual household income. The credit company will take this information and verify your credit history, and then decide whether to approve or reject your application.

You want to have a good credit score, because you'll get a lower annual percentage rate (APR) that way. Your APR determines how much money you have to pay, the interest, on the money you borrow.

Always read the fine print when you apply for a credit card. You'll notice that promotional literature and credit sales persons will tell you all about the benefits of having a card. They won't go into the drawbacks. There are conditions and negatives to having the card, too, and these are usually hidden in the fine print.

First, check the APR. Often the APR starts out really low, making the card sound like a great deal. But it isn't a great deal if, after a time, the APR rises sharply. Consider the APR in the long run, not just during the initial introductory period.

If you are a citizen and are at least 18 in most states - some states you can be younger - you can demand credit from a bank. They don't have to approve you but you can demand it. Most often they won't require you hold an account to have a card with them.

Be careful when you apply for credit. You can make multiple applications for credit at the same time but this isn't such a good idea. It can harm your credit score. You want to be judicious and only apply for one or two at a time.

The credit card market is very dynamic right now and there's a lot of competition. Why not compare offers from different companies and see what incentives are out there? Many credit card providers have special opportunities or deals to help them lure new customers.

by: Thomas Black

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