Steps
- Think about what type of credit card customer you are. Do you often carry a credit card balance? Then you'll want to focus on cards with a low interest rate. Do you always pay your card balance off each month? Then choose credit cards with free rewards. Are you a student? There are cards targeted just to you. Do you run a small business? You may want a card that makes it easy to separate business expenses from personal expenses. If you have a history of handling credit poorly, you may be forced to seek out higher-fee cards that accept those with bad credit.
- Look for resources on the Internet or in consumer magazines that rate the best credit cards or otherwise compare their features. Keep in mind which features are most important for your needs, e.g., interest rate, rewards formula, etc.
- Choose a card. You can apply online, send in a "pre-approved" application you received in the mail, or you can visit your local bank or credit union to apply in person. You will usually receive your card in one to two weeks. In most cases, you will also receive notice if you have been rejected for the card, in which case you will need to return to Step 1.
Tips
- When researching credit cards online, remember that many sites that appear objective actually make their money by getting you to apply for specific credit cards. Those cards may be listed first, may be highlighted as "featured" cards, or may be the only cards listed at all. While these featured cards may be good choices, it still makes sense to use multiple resources to be sure you have a full picture of what's on the market.
Warnings
- Apply for one credit card at a time. If you apply for multiple credit cards, you run the risk of hurting your credit score, which is the number lenders use to decide whether to make loans to you and at what interest rate. This is especially important if you know that you may want a mortgage, car loan, or other loan in the near future.
Sources and Citations
- http://www.consumerreports.org/cro/cu-press-room/pressroom/archive/2008/10/0810-eng0810crc.htm
- http://www.indexcreditcards.com
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