How Do You Get a Credit Card?

By Rick

A credit card is a powerful financial tool that if used properly can help you manage your finances. It gives you the flexibility of purchasing goods when you need them and spreading the payments out over several months. It also allows you to avoid carrying cash with you everywhere to make your purchases. Many people new to the credit scene will ask “how do you get a credit card?” and the answer is simpler than you might have guessed.

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Maintain a good credit history

The first thing that credit card companies consider when deciding on whether to issue you a card is your past credit history. They want to know that if they extend you credit through the card that you’ll be able to make your payments on time each month. How you have managed your credit in the past is a good indication of what type of risk you present for future credit. Having a history of borrowing money for a car, home or student loan that you paid on time every month will go a long way towards helping you secure a credit card. In fact the better your score, the lower the interest rate most cards charge you on your purchases.

Choose the right card to apply for

When you finally decide to apply for a credit card, make sure you do your homework and find a card that is right for your needs. This second step goes a long way toward answering the question “how do you get a credit card?”. There is a wide universe of difference between various credit cards and you’ll need to do some detailed comparisons between them to make sure you get the best deal. You’ll want to compare things like interest rate, annual fee, credit line and bonus points program to ensure you get the best value from your new card. Take your time when shopping for a card as you’ll want to try to submit as few applications as possible to maintain your great credit history.

Other Options for Less Than Perfect Credit

People with credit challenges also ask the “how do you get a credit card?” question and there are a few ways to accomplish this. Some credit card companies will still consider people with a few blemishes on their credit history but may charge them a higher interest or grant them a lower credit limit on the card initially. If you make your payments on time, the company may be willing to lower the interest rate and raise your limit.

If your credit is still too low to qualify for a standard card, you can always apply for a secure credit card. This type of card requires you to keep a certain amount of money on deposit in an account linked to the credit card. As you make your purchases, the charge is deducted from this account to pay the bill. This is not as flexible an option as a standard card but does give you a way to improve your credit history over time by managing this card responsibly

One final option that answers the question of “how do you get a credit card” is by enlisting the help of a co-signer. This second person basically assumes any debt you incur with the card and pledges to make the payments for you. This gives the credit card company the security in knowing that at least two people are responsible for any charges on the card.

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