Tips for Applying for a Credit Card

We don’t think much about it, but we live in an unprecedented time. Products and services are one click away and getting them is quicker than ever. In fact, now it’s almost impossible to get by these days without a debit or credit card.

Being a Credit cardholder has many benefits. It allows you to avoid carrying cash and have up to thousands of dollars available without ever touching money. Today’s world is full of online shopping and services, as well, which means that you can find almost anything you want on the internet. Credit cards make online shopping quick and convenient. They also open doors for you to obtain most anything you could ever want.

Of course, it’s important to use your card responsibly in order to help you build credit. If you are thinking about applying for a credit card and getting approved, here you have a few tips to help you do it correctly.

Get Informed

If you are unsure what a credit score is, it’s a three-digit number that banks and credit issuers will use to determine your creditworthiness. Creditworthiness is how likely you are to repay a debt and be wise with your money.

If you are thinking of applying for a credit card, it will be a good idea to read about Credit and FICO Scores, especially if you don’t have a credit card yet. You can check out articles that can teach you more about credit scores and different financial topics to help prepare you for your application.

Choose the Right Credit Card

With so many options out there, it’s important to think about why you need or want a credit card. This will help you narrow down which cards to apply for. Some cards are specifically for building your credit score, others have lower interest, and some have cashback programs. Getting approved for certain cards might require at least a ‘poor’ credit score of 300-579, and other cards with greater benefits require an ‘excellent’ score in the 800-850 range. 

It’s important to apply only to cards that you have a good likelihood of getting approved for.

Get an Idea of Fees

When comparing banks or Credit Unions that offer credit cards, be sure to compare your options as far as interest rates, penalty and late fees, and annual fees or ATM fees, among others.

Applying for a credit card will be a quick process if you are careful in preparing all the necessary documents, and if you’re careful about choosing a card you’re likely eligible for, a credit card will be on its way to you fairly quickly!

Resources:

https://current.com/blog/fico-score-vs-credit-score-whats-the-difference/

https://www.investopedia.com/fico-score-vs-credit-score-5214435
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