How do you get a credit card?
When you applying for credit card you can choose what kind of card you would like. You have many options to apply for many different card such as benefit card, charge card, or simple student card. Once you apply for credit card, a credit card issuer will grant you available limit based on what you have put on your initial application, your credit report and credit score. Before you apply for credit card offers you should figure out which features and rewards are most completing to you. Before you apply for credit card you should carefully compare credit card fees and interest rates. You should also look if your credit card issuer charges annual fees for using credit card.
Standard Credit Card
Standard credit card offers a lot of incentives and bonuses. Credit card issuer assigns certain limit to consumer based on ability to pay back. You can use that limit for your standard purchases until you have reach your credit limit. An example of a standard credit card would be a gold or platinum visa card issued by your bank, with no additional features.
Your credit limit is based on your credit score. Your bank determines an amount that they think is reasonable for you based on your credit score. This can vary pretty greatly based on the kind of customers that your bank focuses on.
Secured Credit Card
You will probably be able to get a standard credit card with a fair credit score, but if you have a bad credit score you may need to get a secured credit card like the Bank America card Secure Credit Card with Bank of America.Secured credit cards allow customers with bad credit scores to get a credit card with a low credit limit. To get a secured credit card, you have to place a deposit on the card in addition to your monthly payments. In some cases, your bank will return your deposit if you are consistent with timely payments.Compare credit cards to see what credit limit different companies will offer. You may be able to get a pretty good credit limit on some secured credit cards, but if not you might want to work on your credit score so you can get a standard credit card.
Premium Credit Card
Premium credit cards are basically the same as standard credit cards with the added feature that they offer incentives and rewards for timely payments.You need to have a pretty good credit score in order to qualify for a premium credit card. Generally, credit card companies won’t give a premium card to anyone with a credit score that is lower than 750
Charge cards are different from standard credit cards in that you don’t have a credit limit. Instead, you can charge as much as you want to your charge card but you have to repay the entire amount at the end of the month. An example of a charge card would be an American Express Green Card. You usually have to have a very good credit score to get a charge card.
Limited Purpose Credit Card
Limited purpose credit cards are sponsored by a specific institution and can usually only be used at that institution and its partners such as gas card, of department store card such as Best Buy.
Business Credit Card
Business credit cards allow a business to combine all of its expenses on one card, rather than distribute costs among individuals or place the entire burden of all of the costs on the business owner. This allows business owners and employees to separate business expenses from personal expenses.
Credit Card Offers
When you choose a credit card, you should take into account the following credit card offers:
- Credit limit amount: Different credit card companies can give you vastly different quotes for a credit limit depending on what they consider to be a good credit score. Compare credit card companies to see which will give you the credit limit you need before choosing one that gives you too much or too little credit.
- Rewards or cash back: When credit cards do offer rewards and rebates, you should be certain that you are choosing a card with the reward you want. Many rewards cards save you money on food, gas, and travel, but the rebates aren’t always equal.
- Amount of interest that you can handle: When you sign up for a credit card with a certain credit limit, you have to accept the terms of the card. This means that you accept the interest fees associated with late payments. If you have accepted a card with terms you can’t handle, you could end up hurting your credit score a lot.