What You Need To Know to Apply for a Credit Card

What You Need To Know to Apply for a Credit Card. One of the disadvantages of modern times is that people tend to acquire so many things they don’t really need. Numerous gadgets and services occurred targeting a vast market of consumers and this emergence of various inventions somehow blinded people.

Since finances—especially money—is one of the major concerns of many people, a wide array of financial management services and financial options emerged. One of the most visible among the unending line of financial management services there are is the credit card.

Although many people testify for the financial convenience you get when you apply for a credit card, it doesn’t mean that every financing convenience applies for you or for everybody in that matter.

When people apply for a credit card, there is always a reason. It can be for managing their finances, needing extra money or in preparation to a big expenditure. But, no matter what the reason is, people apply for a credit card because of the ultimate convenience it brings. By now, you may have had your share of ‘pre-approved’ credit card offers in your virtual and physical mail. Since people are quite vulnerable when they apply for a credit card, some credit card issuers lure these people by giving low introductory APR, no annual fee offers among numerous perks. The tendency of this so many alternatives and “value” deals is to sway the person who wants to apply for a credit card.

There are undeniably endless lists of pros and cons when you apply for a credit card, but if you really have decided to apply for a credit card, these are some of the helpful tips that can guide you on your credit card shopping journey.

Actually, there are three easy steps you should follow if you have decided to apply for a credit card. First, surf the net and do some research on credit cards. By doing this, you can familiarize yourself with different credit card terms and types. Second, you can compare numerous credit cards that would best serve your needs and lastly, you may now apply for the credit card of your choice by filling out a credit card application by visiting a bank representative or through online.

In order to find the right credit card fast and easy, first, before you apply for a credit card, make sure you mastered the credit card terms. When you apply for a credit card you must know what a “credit card” really is. Being a form of borrowing that involves charges, credit cards usually have underlying credit terms and conditions affect your overall cost. So, it’s best to compare terms and fees before you apply for a credit card and agree to open an account. Some of the important terms to be understood well include the annual percentage rate or the APR.

When you apply for a "credit card", you must know how the APR affects your credit account. Being a measure of the cost of credit expressed as a yearly rate, the APR should be disclosed before you apply for a credit card so that you would not be obligated on the account and on your account statements later on. Aside from APR, the periodic rate must be disclosed to the card holder before they completely apply for a credit card so they would have an idea of their outstanding balance and finance charge for each billing period. Other important terms to know before you apply for a credit card are free period or “grace period,” annual fees, transaction fees and other charges, other costs and feature, and balance computation method for the finance charge like average daily balance, adjusted balance, previous balance, and two-cycle balances. If you’re not that type of person who is patient enough to research on all these terms, make sure that before you apply for a credit card, the issuer will give an explanation how the balance is computed and it must appear on your monthly billing statements.

Going to College? Consider a College Student Credit Card

If you're a parent of a college student it may be a source of great anxiety. If you're a student getting ready to start the next stage of your life, it's another piece of freedom that you have been waiting all of your life to gain. What is it? Your first credit card.

College student credit cards have been the subject of debate and controversy. Some argue that credit card companies are targeting the less than responsible spending habits of college students. They're offering students a credit card knowing that money will most likely be made in finance charges, late fees, and high interest rates. Additionally, colleges and universities often receive kickbacks from the credit card companies for allowing them to set up booths on campus, send offers to students and parents on the university mailing list, and give students the offer they can't refuse. Colleges and universities selling student information to credit card companies is sometimes seen as a conflict of interest.

Others argue that learning to spend wisely and hopefully build a credit history should start as early as possible. If a credit card with a responsible limit is established, it may be the perfect time to build a positive credit report especially when most students aren't bogged down with other financial obligations like house and car payments and the expenses associated with having a family.

If you believe that college student credit cards are right for your child, there are a variety of options available in two major categories. First, if an actual unsecured credit card is desired, very attractive cards geared towards students can be found. Some give extra rewards points for the types of the typical college student purchases like books, music, movies, and food and normal points for all other purchases.

The interest rates on these cards are at a manageable level but like any credit card, students should practice good credit habits by paying the full balance at the end of each billing cycle. Many cards have an introductory rate as low as 0% and no annual fee.

There is another class of college student credit cards that aren't actually credit cards but represent an option with less risk of abuse or irresponsible spending habits. Parents can take out a prepaid credit card where a set balance can be added to the card at selected intervals. This does not build a credit history but prevents the student from getting overwhelmed with credit card debt.

Many of these prepaid cards come with helpful benefits including no annual fee, free automatic bill pay, and free e-mail and text messaging alerts with information on the card's current balance. Additionally, places like Western-Union and many others serve as places where money can be added to the card.

Legislation protecting college students from unlawful credit card practices has been proposed but if you believe that a college student credit card is a good idea, many options are available. As always, going to one of the many popular websites that compare the numerous credit card offers is the best place to get started.

If you're ready to apply for a student credit cards, here are some of the best college student credit cards. Don't just apply for the first card you find though. Make sure you compare college student credit cards to ensure you get the best deal.

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