What Factors Come In To Play When You Apply for a Credit Card

How do you apply for a credit card? What types of things should you know regarding how to apply for a credit card? Credit cards can be tricky things to have. Often times we have seen many individuals suffer from having credit cards and hit a bad debt mark on the credit score scale because they have simply chosen wrong when they apply for a credit card.

When you apply for a credit card you should have, at least three things in your mind. First you need to know what the annual percentage rate is when you apply for a credit card. The annual percentage rate is going to be the interest you will be charged on the credit card for any outstanding balance you have. This interest rate for personal cards is usually no lower than 14.9% in the current market. For business cards you may apply for you can find 7.99%. Keep in mind when you apply for a credit card the introductory rate will not last forever. Credit card companies have been offering a three month introductory rate for new purchases that is lower than the regular APR. They have also been offering 0% balance transfer APR’s for three to fifteen months depending on the card.

So when you apply for a credit card keep in mind what you will be using the card for. If you are just looking for a credit card with an introductory balance transfer rate to save you money, then you should apply for a credit card that offers a lengthy term. Some of the cards you can apply for include football credit cards. They are offering, when you apply for a credit card, an introductory period on balance transfer rates for twelve months. This means you have twelve months to pay off the balance before you start paying the 15.9% interest rate. Make sure you can pay the balance off when you apply for a credit card before the time is up. Other wise you are either looking for a new credit card or paying that interest rate.

You also need to make sure before you apply for a credit card that you understand the policies as they are explained on the application and information. Often times when a person applies for a credit card they do not understand how the balance transfers work or the rewards programs. A balance transfer is always going to charge a handling fee of 2% to 3% depending on the card. This means that when you apply for a credit card and then transfer a balance you will be paying a small fee for the amount you transferred. With cash rewards you may earn 5% for the first three months and then 1% after that.

To apply for a credit card you can just go online to that company’s website and fill out the application. Most often you find out whether you have been approved in two weeks or that day. It will depend on the company. To apply for a credit card the card issuer will look at your credit history to determine your risk and either approve you or decline the application.

Back To Financial News December 2007

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Higher Credit Card Fees for UK Customers
September Sees UK Credit Cards Holding
Ways to Avoid Overspending at Christmas
What Factors Come In To Play When You Apply for a Credit Card
Draft Guidelines for Recovery Agents
Opt For Debt Consolidation
Adverse Borrowers Need to Act Now