Basic Tips When Applying for a Credit Card

A credit card can make business transactions simple and very convenient. It also leaves the card owner free because he doesn’t have to carry cash with him whenever he goes shopping. Shopping online has become the norm of the day. Many people buy their everyday items through online medium these days and having a credit card makes all the difference. All one has to do is visit a secure site, purchase the goods, drop them in the virtual shopping cart and pay for them with the credit card. So to apply for a credit card is the most feasible option.

Sure, when a person apply credit cards he has the benefit of doing it online. And it is a very simple process too. All he needs to do is to fill in the online application form and submit it for the provider’s approval. Normally, the process will take about 2-3 weeks.

Once a person gets ready, he must know that there are there are many categories and sub categories involved in it. Getting the application form is just the beginning because there are lots of other things to consider. For one, the applicant should know what kind of a credit card he is applying for. Next, the applicant should be aware of his credit limit and the type of credit he has. Finally, he should consider the provider from whom he is applying.

Types Of Credit Cards

The following are the options when a person apply credit cards:

Reward Credit Cards – Reward credit cards are a great help when one goes shopping and most of the time the rewards will be in the form of discounts, points or cash. These reward credit cards arecredit_card further categorized into gas cards, airline cards, financial cards, sports cards, home improvement, restaurant, shopping and so on. When gas prices rocket it will be a major help when one applies for gas cards. When a person apply for a credit and earns it, he can earn a certain percentage on the gas he fills in his automobile. The rebate percentage is usually from 1% to 6% and sometimes providers offer a 6% rate to attract more customers. However, as the months go by, the rate will go down. Most providers do not charge annual fees for a gas card. The applicant has to clear this with the provider before apply credit cards.

Most people who travel a lot by airplanes make use of the airline credit cards. These are generally calculated by the number of miles traveled by the person. When a person gets a credit card for airlines he is going to save a lot of money. Most of them offer discounts or points, so ultimately the user gets a free travel. Some airlines offers credit card discounts when the user dines at certain restaurants. It is a great boost for vacationers since it saves them money that way too. Similarly, sports credit cards are a great help when a person buys sports goods. Be clear about the discount when apply for credit cards because some companies offer as much as 10% discount. In the same way, a person can get discounts on the other categories mentioned above.

Secured Credit Cards

A person can get a secured credit cards. Banks and other financial companies offer these cards when a person opens a security deposit with them. The bank allows credit for only the amount deposited in that account. Normally, to apply credit cards, the person doesn’t have to worry about his credit rating and that is the major highlight of secured credit cards. Once the user becomes stable in paying his credit card bill, he can switch to unsecured credit card. The interest rate is something a person should consider checking minutely when apply credit cards.

Standard Credit Cards

A person can apply credit cards, the standard variety when he can prove that he earns a substantial income every year. A person has to be past 18 to apply for this kind of card. However, there is no need to deposit any money in the account to start using this card. A person with standard credit card can pay an amount called the commitment fee and then use the credit card to make purchases.

Prepaid Credit Cards

A person can get credit cards in which he pays an advance amount. It is called a prepaid card and will be a major help during dining and shopping. Overspending can be controlled to a certain extent because it is not possible to spend over the limit.

Student Credit Cards

.It is a great help when expenses arises and the students have to pay for some sort of emergency. The students can get rewards, points and cash and those can be used to buy school supplies. They don’t have to carry a checkbook with them all the time.

Apply Credit Cards Depends On Previous Credit Rate

Applicants are categorized as having excellent credit score, good, fair or bad credit scores. The credit scores matter a lot when they apply for the card. When a person apply credit cards, he is thus classified under his previous credit scores.

Some of the famous credit card providers in US are: Bank of America, American Express, Citibank, Capital One, Chase (Bank One), Chase, US Bank, Visa, Wells Fargo, Discover, Master Card, MBNA, Providian and National City.

Some Simple Tips

In order to avoid rejection the applicant can remember these simple tips:

An applicant who pays his bills on time is given preference

Ensure the applicant has a checking account at the same bank

Providers like to see a large credit line on the applicant’s alternative cards; so reduce utilization by about 25%

Never overstate or understate the income; banks want to know how the credit card bills are going to be paid.

Sometimes the credit cards that provide a lot of fringe benefits may not be the right one for the applicant; so research a lot. Read the small print first.

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