Credit Card Applications

Credit Card Applications: What you should know before applying
A credit card application could well be your ticket to ready credit available anytime you want. However it is not as easy as it seems and there’s a lot that goes into processing an application. It helps to know what credit card companies are looking for in an applicant, specifically the things they check for. Not only will this prepare you for what to expect but also help you get your own finances in order.

Steps to applying for a credit card
It is easy to apply for a credit card. By filling a simple application form one can complete the application process. Usually credit card companies will ask for standard information such as name, date of birth, SSN or social security number, address, city, housing status, housing payment, home phone, mother’s maiden name, email ID etc. Applying for a credit card necessitates having a household income above a certain limit. Your credit history too should not be dotted with bankruptcy and delinquency issues.

Before applying: what you should know
There are certain things you need to look out for before any credit card application. You need to research and shop around for rates before settling in on any credit card company.

Introductory rate: Usually these are promotional rates offered during a certain period. For example many companies offer a 0% balance transfer and a 0% APR maybe for about 6-12 months.

Balance Transfer: Balance transfers are a great way to consolidate debts and liabilities. This refers to a way of transferring outstanding balances from current credit cards to ones with a lower interest rate.

Annual fees: Most credit cards nowadays offer a zero annual fee on their cards. This is good to avoid paying unnecessary expenses.

Grace period: Most credit cards offer a grace period to pay off the outstanding balance. This is usually an interest free period of around 30 days.

Annual Purchase Rate: This refers to the rate at which purchases are subjected to. Some credit cards offer a 0% APR while others offer the standard market rate. However with the rise in competition, most cards are nowadays offering 0% APR.

Minimum monthly payment: This differs from one credit card company to another. Therefore select a credit card company that has a lesser amount of minimum monthly payment.

Loyalty programs: Many credit card companies offer loyalty programs to cater to their regular customers. These range from frequent flyer miles to reward points.

Top mistakes people make
The prospect of having a credit card in hand can cause enough excitement to forget to be cautious. These can include things from:

Not maintaining a good credit history
Having too many credit cards or liabilities
Having a history of delinquency and defaults etc.
Having a low household income

Credit cards: A real boon
All in all, any credit can prove to be a handy resource for ready credit. It can help in times of cash crunch and when you need to purchase that much needed item. It’s usually the small business owners who might need a credit card the most. Sudden, unexpected requirements for inventory, maintenance expenses and overhead costs can cause crisi situations for small businesses. Having a credit card may mean not having to wait for cash to make a purchase. Even for personal use it can be a great way to avoid being strapped for cash. Let’s say you need a new appliance for your home or some fancy jewelry you saw at the store or even new clothes, credit cards can mean never having to wait to shop. Therefore, a successful credit card application can really be your way to hassle-free shopping.

RECOMMENDED CREDIT CARD RESOURCES

CREDIT CARD TYPES

Choosing the credit card that's best for your needs and situation starts with knowing what options are available to you. The following list details the most common credit cards available:

	Balance transfer credit cards - Balance transfers are a way of transferring outstanding balances from existing credit cards to another card that offers a lower interest rate. For example, if you your have a high annual percentage rate (APR) credit card with a significant outstanding balance, you can transfer the balance to another card with a lower rate or even one offer zero interest. Typically these cards offer low balance transfer rates for a specified period of time allowing you to save hundreds (or even thousands) of dollars in monthly interest charges.
	Low-interest credit cards - These cards offer a low introductory annual percentage rate (APR) for a promotional period, after which they can change to a higher rate or a fixed-rate. If you plan on making a large purchase, it's a good idea to pick up a low-interest credit card to take advantage of the savings on interest during the introductory period.
	Cash rebate credit cards - Cash rebate cards accumulate "points" for1 every purchase you make using the card. Most cash reward cards award a point based off 1% of the purchase total, excluding interest and finance charges. For example, if you make a purchase for $1,000 the credit card will award you with 10 points (or, $10.00). These cards are great for loyal customers who make payments on-time every month.
	Reward credit cards - Reward credit cards are similar to cash rebate credit cards, but differ in that they offer various forms of "rewards" for the purchases you make. For example, you can accumulate rewards for frequent-flyer-miles, free magazine subscriptions, and even hotel and travel discounts. Ideal for those who enjoy getting something for free from their credit cards.
	Travel credit cards - Travel credit cards are ideal for the frequent flyer who travels the globe on a frequent basis. These cards accumulate significant reward points every time you make a travel-related purchase. You can gain discounted airline tickets, rent cards for free, and even get discounted hotel rates!
	Pre-paid credit cards - Pre-paid credit cards are ideal for those who are on a tight budget and don't want to fall prey to the financial pitfalls associated with standard credit cards. They work similar to gift certificates or debit cards. You deposit money into the card and then use the card to make purchases as you would a typical credit card.
	Secured credit cards - Secured credit cards are ideal for people with poor or no credit. They work on a collateral system, where you put up something of value against the debt on the card.