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How to Apply for a Credit Card

Many people depend on resources received from credits. However, the procedure surrounding the receipt of credit is not very clear to beginners. In order to get a clearer idea on this it is recommended to just apply for it and see how it actually works.

Places to Apply for Credit

One of the places where you can apply for credit is a credit card specialized bank. The latter is also the most commonly recommended place for obtaining a credit card. You can first try at the bank in which you already hold a savings or checking account. See whether it provides credit to clients that don't have history in crediting. This is required if this is your first credit. If your bank provides credit to investors without this credit history, then it is time to make your first try.

On the other hand, if your bank declines your application you can either obtain a department store credit card or an oil company credit card. Their receipt is much easier than those issued by banks. However, the cards obtained from the mentioned above entities have their hidden traps, such as higher interest rate, which you should carefully study before jumping in.

On the other hand, if you have used such a card and show that you have done this reasonably then it can serve as evidence for your major credit card reliability application.

Another option you have is a secured credit card, which requires you to make an initial deposit in an account, which serves as the credit limit. If a specific time passes by, during which you maintain a clear credit history, the secured credit card can be turned into a non-secured credit card.

Credit Card Application Tips

The process of selecting the right credit card for you is not a simple one. You should always do some research before you jump in with a particular issuer. Use the online and offline sources for the various credit card options available on the market. However, you should have in mind that the ratings and plans usually change frequently, so it is always good to call the institution to confirm and verify the information you have.

After this, it is recommended to make a list of the credit card characteristics that are most appropriate for the financial needs you have. Order the needs by importance and way of use of the card for the coverage of the monthly bills.

After you have obtained information on the various plans, it is advisable that you review the information you have gathered. You should look for a low APR. It is also advisable to think over the opportunity of becoming a member of a credit union. You can benefit from their lower interest rates, since they represent non-profit organizations. However, you should have in mind that credit unions may not be open to the public, since some of them are limited to a certain employer and his/her employees.

Before selecting a particular plan make a comparison between the ones you have found. Don't miss the chance to negotiate your rate with your current credit card company in case you have a good credit rating.

Finally, you should remember that your credit history will most of the time determine the future options you have.

Age Eligibility

It is generally believed that a person should be at least 18 years of age in order to apply for a credit card. This belief usually stems from the required by law age at which individuals are allowed to sign a contract, but it is not always true concerning credit cards. The reason for this is that the age at which people have the right to sign a contract varies from one state to another.

Credit Card Don'ts

There are several things that you should avoid doing:

  • Don't make several applications for credit. This is not recommended, because each of the applications will be written on your report and thus signals that you may desperately want a credit.
  • Don't accept implicitly credit cards that are offered no matter what your credit history is. You should address cautiously such offers, because they are usually hidden traps, which will result in costing you more money than needed.

Finally, you should make a careful research on the credit card possibilities you have and always remember that credit cards should be used reasonably. 

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