Applying for a credit card

by Mammon
Given that you are reading an article about credit cards, you are most likely thinking of applying for one. If you have the right reasons, then this is an excellent idea, however you need to make sure that your circumstances support it. If you have good credit, you can get an excellent rate, however if you have any past credit issues then you need to keep an eye out. There are sharks out there who will promise you the world, but end up giving you something ridiculous something like 23% APR with a $300 limit, and almost that much to activate it. Yes, this really exists, from a bank in North Dakota.

With 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.

In fact, the best credit card can even be something usual, for example a rewards card from a grocery store. A surprisingly large number of grocery stores have partnered with a local bank to provide rewards cards that double as visa cards, and as a discount card as well. A few stores will also send customers coupons when they spend a certain amount.

Often good credit holders can get discounts on insurance, no annual fee credit cards, point rewards credit cards, and much more because they have meticulously attended to their credit score.

With Bad Credit

Although your credit might be quite bad at the moment, there are still much better ways to build it back up then by going with something like the abysmal card mentioned above. If you go to your bank, they'll probably be able to set you up with a secured credit card, which will at least give you something. They'll ask for a security deposit, usually at least 25% of the limit, but possibly as high as all of it, and have a low limit to boot. Still, this will give you the chance to re-establish your good credit score, at which point your bank will most likely be willing to remove the restrictions.

However, beware--these unsecured offers that come in the mail are often worse than the above-mentioned North Dakota card. Go to your bank or credit union for your secured credit card; they may even have a way for you to apply for your credit card online.

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