How to Apply for a Credit Card

Before you should apply for a credit card, you may want to research the types of credit cards that are commonly offered. One of the premier credit card research tools is provided by Bankrate.

Determine your Needs

Credit cards may come with a variety of features and costs. Consider these factors before you apply for a card:

• Some credit cards charge an annual fee while others do not.
• Interest rates vary widely, from below 10% to well over 28% APR.
• Some credit cards offer rewards that may include cash rebates or other perks.
• Credit limits vary depending on the type of card, the card issuer and your credit rating.
• Fees may vary from one creditor to another, as well as on different card products issued by the same credit card issuer.

Complete an Application

Once you have determined the right credit card for you, you may apply by either mailing in an application or by completing an online application for a credit card account. The credit card issuer will notify you whether your request is approved or not, and they will let you know what terms govern use of the card account.

If you received a pre-approved application, then your chances of being approved are increased. There is no guarantee however that your application will be approved. Credit card issuers will evaluate your responses on the application and will review your credit report to determine whether to extend credit, and what terms to place on the account.

You do not have to be pre-approved in order to gain approval for a card account. You simply have to meet their eligibility requirements. If you have received similar offers from other card issuers, then you can reasonably expect to meet the requirements for the card that you are applying for.

Applying for and maintaining a credit card account helps you establish and build a credit history. If you are applying for credit because you are having trouble paying for current debts, then you may wish to consider credit counseling instead.