Getting a credit card should be something you take seriously. People are often inundated with offers in the mail for credit card applications and may a have a difficult time choosing the best one or even deciding how to apply. A new law requires that you be twenty-one before you can apply for a credit card without a signer.
Difficulty: Easy
Time Required: 1 hour
Here's How:
- Choose a credit card to apply for. This is actually the most important step when you decide to get a credit card. Offers may come in the mail for you, but they may not be the best card for you. Read the fine print and look past the introductory rate to what the rate will be after that has passed. A rate of around 15 percent is typical, but you should not choose one with a rate higher than that if you can. Look for a card with no fee. Instead of looking only at mail offers go to your current bank to see if they offer a credit card with competitive interest rate.
- Fill out the application for the card and wait to see if you are approved, and what the rate will be. Do not apply for multiple credit cards at the same time. Most people only need one credit card one hand for emergencies. More than one card makes it easier to get yourself in credit card debt.
- Wait to be approved or denied. If you have no credit history or a job you may not be approved for your credit card. One option to build credit is to use a prepaid credit card where you deposit money into an account to stand as collateral for the credit card. Another is to build your credit through your bank with a small line of credit.
Tips:
- Too many people find themselves in serious credit card debt after a few years. Only use your credit card if you have cash to pay it off that month or if it is a true emergency. Commit to paying off the card in full each month.
- Avoid having multiple credit cards, because it makes it difficult to track your spending, and to pay off everything each month.
