Applying for a credit card

By: Mammon


If you are reading this article, you are probably thinking about applying for a credit card soon. While this is a noble endeavor for the right reasons, you need to make sure you apply for the correct one for your circumstances. You may be able to get a great interest rate if your credit is good, but if it's spotty you will have to watch out for the sharks out there who promise their customers the world, only to deliver them a whopping 23% APR with a $300 limit and $250 in fees just for activating the card (yes, it exists, from a bank in North Dakota).

Credit Cards for Good Credit

With good credit and a good income, just about any card is available. Often, if you have particularly good credit, you will get offers in the mail and not even have to go out looking for them. Of course, if it came in the mail, it's probably not worth going for anyway.

The good credit credit card can be a special rewards card. For instance, many grocery stores have worked with local banks to provide a Visa card for customers that doubles as a rewards card and as a discount card as well. Sometimes there are great offers that can only be had by these card holders, and the also accumulate credits towards discounted grocery bills. Some stores even send their customers coupons for every $1,000 they spend.

If you have good credit, you'll also have an advantage in other circumstances as well. For instance, insurance companies are more likely to give you discounts, and you can get credit cards with lower annual fees- or even with none. This is all to reward you for keeping up a good credit score, which is not that hard to do.

With Bad Credit

Just because you have bad credit doesn't mean you should suffer offers like the one mentioned in the first paragraph. Often the best thing for you to do is apply at your bank for a secured credit card. This card will give you a low limit and require a security deposit from 25% to 100% of your credit limit, but will also give you an opportunity to re-establish your good credit. Once you have done that, often the banks will extend you more credit and remove the restrictions.

You still need to be careful though. Unsecured offers that come in the mail are usually a lot worse then what you could get at a local bank. If you really need access to a credit card, then go to your bank or credit union and apply there. They'll find something that's appropriate, whether you are looking for a secured or unsecured card. You might even be able to apply for it online.

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Information about the Author:

Mammon is an professional financier, and an expert on no annual fee credit cards. Click here to see his site on secured credit cards.