Tuesday, June 10, 2008

Tips Before Apply for a Credit Card



Deciding to apply for a credit card is not a decision you should take lightly. Many stores try to get you to impulsively apply at the register, and you should never agree. Credit cards can affect your financial situation for years so you should certainly think before you act. If you want to apply for a credit card, there are a few steps you should take beforehand.

Evaluation

Before you apply for a credit card, you should do an evaluation of your finances. Get a free
credit report and make sure everything is accurate. You will want to know what your credit score is
so you will know which cards to look at when you apply for a credit card. If there is anything
unusual or incorrect on your credit report, deal with it immediately. Many people never look at
their credit report, and therefore have no idea what may or may not be on it. It is important to
clear up anything incorrect on your credit report before you apply for a credit card.

Research

After getting everything strait with your credit report, you should begin researching. Research
cards that fit your credit score. Make a list of important characteristics you want in a credit
card. Look for the best deals in several areas. Before you apply for a credit card, you should make
sure you understand everything about the card and the company’s policies. Look at the interest
rates, rewards programs, and other characteristics.

Be wary of great introductory offers. When you apply for a credit card, many companies will offer
you fantastic introductory deals. It is great to take advantage of these deals, however you
should be sure that the terms won’t change unexpectedly after the introductory offer time period is
over. For example, you will need to know what the interest rate will be after the offer before you
apply for a credit card.

Conclusion

Once you find several credit cards with terms that you understand and like, categorize them by
your choice. Apply to one at a time. If you only need one card and apply to three, you run the
chance of getting approved for all three. This will not only reflect on your credit report, but also
give you the inconvenience of canceling two of them. So, be patient and wait for a response.

When you apply for a credit card, you are vowing that you will be responsible financially.
Deciding to apply for a credit card means that you know you will be able to pay the balance off in a
timely manner. If you are not sure of your ability to pay, you should never apply for a credit card.
Be responsible, examine, and research before applying!

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