Filling out a credit card application for the first time may feel like a daunting process, but it doesn’t have to be difficult. Below you’ll find instructions on how to apply for a credit card, tips on how to find a credit card that’s right for you, and advice on how to keep your score in good shape. Armed with this knowledge, you should be ready to start the application process.
How to choose the best credit card for you
Before you start your application, you need to decide which card makes the most sense for you. Fortunately, there are several different types of credit cards specifically for those who are just starting out on credit.
Guarantee card. These cards require a deposit to open, but they are easier to qualify than regular cards.
Student card. These cards are specifically for students
Credit cards for people with limited credit. These cards may be your best option if you can’t afford the deposit on a secured card. They generally have lower credit limits, but are designed for people with limited credit history.
How to check your credit score
Believe it or not, you can still get credit even if you’ve never used a credit card before. Other financial outcomes, such as student loans or utility bills, can affect your credit score.
With this in mind, you should check your scores before filling out your credit card application. You are most likely to be approved if you apply for a credit card within the appropriate points range.
To view your score, visit AnnualCreditReport.com. Everyone is entitled to a free credit report from every credit bureau each year.
How to buy a credit card
Once you know your score, look for a map in that area. You should review the terms and fees below for each option that appeals to you.
- Annual fee. An annual fee charged by some lenders for the privilege of being a cardholder
- April. Also known as APR, this is the interest rate that applies to the balance you hold each month.
- Overdue fines. Any fees charged by a credit card for late payments or payments that are less than the minimum amount due.
How to apply for a credit card
Applying for a credit card is relatively easy. All you have to do is follow these simple steps.
- Choose the method that works best for you. You can apply for a credit card online, by phone, by mail, or in person.
- Please fill out the application form! After selecting the card you want to apply for, fill out the application form. Typically, you will need your name, mailing address, date of birth, social security number, and income information.
- Awaiting approval. Today, some credit cards offer an instant approval option, but it usually takes 7-10 business days to get approved. Once approved, it may take an additional 7-10 business days to receive the card.
Advantages and disadvantages of credit cards
Benefit
- If you use your funds efficiently, you can improve your score.
- You must be able to pay for the purchase over time.
- You have the opportunity to earn rewards for your purchases.
- Credit card companies offer fraud protection.
Недостатък
- Credit cards can hurt your score if used incorrectly.
- You can go into debt.
- Credit cards come with fees and payments.
How to maintain good credit
To keep your score in good shape, all you have to do is make sure you pay your bills on time each month. You should also pay more than the minimum payment as much as possible. Ideally, your goal should be to pay in full, as this way you can avoid paying interest on your purchases.
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