A Beginner’s Guide to Applying for a New Credit Card Online

Credit cards are useful if you have businesses or household to run. Large expenses can easily wipe out your savings account or liquid assets, and can happen without warning. With the aid of a credit card, you can pay for those unexpected expenses without exhausting your cash on hand.

The following information is a useful guide for credit card users. It includes advice on basics such as fees, interest rates, and responsible credit card use.


Credit Rating

In order to apply for a credit card, one must have some level of credit rating. First-time card owners often receive offers in their email for cards with high interest rates and low credit limits because they do not yet have an established credit rating. Accepting these cards and using them sparingly can help build a good credit rating. Eventually, how you manage your account allows you to apply for other major credit cards with lower interest rates and higher credit limit. This takes time, diligence, and consistency when paying off charge card balances. Once you establish a good credit rating, the less beneficial card accounts should be paid off and closed. Another way to build up your credit rating is the use of store credit cards. Qualifying for retail charge accounts is easier; making small purchases and paying the balance on time helps build the credit rating needed to apply for major credit cards.


Credit Card Fees

Credit card users should be aware of the fees associated with each account. Fees vary greatly from company to company, so it is the user’s responsibility to research the fine print on fees. Some interest rates are low enough to counter any fees incurred, but one must be aware of all the terms and conditions. Avoid being taken advantage of by hidden fees. There are extra charges when using your card at an ATM machine, for being late on a payment, or for paying your bill beyond a certain time period. You can even incur fees for not using the card at all. Know how your online credit card works.


Credit cards, when managed properly, can significantly increase your buying power whether used at home or for business. They can also become your downfall. Credit card debt mounts quickly because of how easy they are to use in almost any scenario. Dining out, buying books for school, paying for fuel, furnishing a home, you can even buy groceries with credit cards. Paying with a credit card is so convenient because there was no cash involved. This false sense of security can lead to reckless spending, leaving the buyer with more monthly payments than they can afford.


Credit card companies compete for your business. It is important to know your options when choosing one. When applying online for a credit card, you must take the time to know the fees, rewards, and interest rates before you commit to a binding agreement with any lending service.


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Ms. Career Girl

Ms. Career Girl was started in 2008 to help ambitious young professional women figure out who they are, what they want and how to get it.