Credit card use in the U.S. is growing rapidly with just over 14% of
Americans holding more than 10 cards. Take on board the fact that the
average American holds four credit cards and it becomes patently obvious
that credit cards now play a major role in our day-to-day lives. You
may ask why is it that people need so many cards? Well the truth of the
matter is that your typical businessman may have different cards to
manage different areas of his business. For example, he may have a card
for gas for his car. He may also have a card for hotels and
accommodation, his flights too may be charged to another card and so on.
But there are many Americans who have more than one card simply because
none of the cards in their wallet work for them as they should..
One
of the most common reasons for this is that he/she did not take the
time and effort to research. Before you set out to apply for a credit
card online, it is crucial that you research the market in order to find
the perfect card to meet your personal requirements. Also, unless you
have near perfect credit history, you should take the time to find out
your current credit score as this could affect your choice of card.
There are four simple rules to follow before you apply for a credit card
online, which if implemented, will ensure that you end up with a card
that will be tailored to your needs.
Credit Score.
If you have
a good credit score or a poor credit history, you will know it! If your
credit is good, and you have no reason to doubt that, then you can move
on to the next part of the process. If your credit is poor then you
have two choices. Before you apply for a credit card online you should
set out a plan to repair your credit in the shortest time possible. This
can involve either taking whatever credit card you can, even if the APR
is high or you are requested by the card issuers to pay a deposit, or
if your credit is dreadful, apply for a debit card (pre-paid). Either of
these choices will give you the opportunity to demonstrate that you are
able to manage your card proficiently, which will increase your credit
score dramatically. Those individuals who are unsure of their credit
score I would suggest you find out exactly what it is before you carry
out any serious research (This information is available online).
Different agencies use varying techniques to determine your credit
score, but generally speaking underwriters suggest that a FICO score
above 620 is good while results below 620 should result in further
inquiry from the lender.
Research The Market.
Research is the
most important part of the whole process when you apply for a credit
card online. Yes, it can be tedious, but if you use due diligence here
you will end up with a credit card that works for you and not the other
way around. This will save you from having to apply for a further card
six months down the line. Many online credit card websites are currently
offering comparison charts, and while this is an easy process, it wont
necessarily return accurate results. Browse for websites that describe
the different cards available and the advantages of each card. For
example, Rewards Cards, Low Interest Cards, Low Introductory Rate Cards,
No Annual or Monthly Fees Cards, etc. The list goes on. Take all the
information you learn to help you determine how much the card will cost
you each month. Budget carefully and be sure you do not over-commit
yourself financially. Read the small print on each offer. You will need
to know about late payment charges, cash-backs and zero liability in the
case of unauthorized purchases. Be wary of offers that include a low or
zero % initial interest rate. You need to know when the rate will
revert back to normal and exactly what that rate will be.
Your Application.
It's
all downhill from here. When you apply for a credit card online you
will automatically be in a secure area, and you are safe to send
personal information which will go directly to the issuers office. If
you want to be sure, just check that the URL in the address bar at the
top of your webpage begins 'https://'. The 's' stands for secure. You
will also see a gold padlock image on the right hand side of the address
bar. Complete the application form as accurately as possible as
approval may be delayed or even rejected through lack of information.
Once you have answered all the questions on the form simply click to
submit your application. Although credit cards typically take 7-10 days
to arrive, you should know if you have been approved within a day or so,
sometimes just hours.
Approved Or Rejected?
If you apply for a
credit card online and are rejected, it will more than likely be
because of a poor credit rating. It is unwise to apply again as each
application is noted in your credit rating information. Your best move
in this event is to spend six months or so in repairing your credit
before you re-apply. If your application is approved, your card will
arrive in about a week. Use it sensibly and if possible pay off the
balance each month. I recommend that you only use it for purchases that
you could pay for by cash. It then becomes a very convenient piece of
plastic that will help you to budget and manage your finances with
greater control. This action will also keep your credit score high, and
you will benefit in the future by being offered the best rates
available. The card issuers will also be keen to raise your limits as
you demonstrate you are in total control of your finances.
So
that's it! Four simple rules to ensure that when you apply for a credit
card online, you will not only have a greater chance of being approved,
but you will not need to be applying for further cards in the near
future, simply because the card you have doesn't work for you.