Does getting a credit card seem like an impossible idea to you at this point? Have you tried your best in securing a credit card, and your efforts have not yielded any results? If yes, make sure you understand how to get a credit card so you can access funds for your daily spending, business, and travel.
Why not sit back, read and learn from these proven steps for securing your next credit card?
To Get a Credit Card:
- Determine Why You Need a Credit Card
- Know The Types of Credit Card Available
- Examine Your Credit Score
- Locate The Best Credit Card Offers
- Read The Fine Print
- Apply For The Best Credit Card of Your Choice
Are you excited? Let’s go.
1. Determine Why You Need a Credit Card
To get a credit card, figure out the reason for getting one. To help you in your decision-making, answer these important questions.
Do you want to buy an asset, say, a new TV or a piece of gardening equipment?
Get your credit card with no interest charges on your purchases over a year. Chase Freedom, for example, presents a 0% APR intro into purchases made for 15 months.
Do you want to clear your debt and its high interest?
Consider a balance transfer credit card to manage your debt. You can transfer your debt to a balance transfer credit card to avoid having a balance on a high-interest credit card. Complete the balance transfer within the specified number months of opening the account
Do you want to earn rewards?
You get points or cash back on your spending when you use a rewards credit card. If that scenario appeals to you, then consider cards that offer rewards in specific categories like gas, travel and groceries.
Do you want to build credit or repair poor credit?
It can be hard to get a credit card that fits into these categories. Consider a secured card for building credit or cards for building credit online.
Do you want to travel abroad?
To travel abroad, you need a credit card with no foreign transaction fee.
>>>MORE: How to Properly Use Credit Cards
2. Know The Types of Credit Card Available
To get a credit card appropriate for your use, know the various types of credit cards available. Below is the breakdown of different credit cards; make the choice appropriate for your use.
- Unsecured Credit Card: You don’t need collateral to get this card. Unsecured credit cards require good or excellent credit score to get an approval upon application.
- Secured Credit Card: Get a secured credit card if you don’t have a credit history. It requires that you make some deposit to get your line of credit. Note that the credit you have access to is always equal to the amount you deposited. A secured credit card offers limited benefits but it is good to build credit.
- Rewards Credit Card: It’s one of the best credit cards for daily expenditures. You get particular cash back or points for your purchases, and you can get bonuses on popular purchases like gas, groceries, and some household items. Redeem your points through gift cards or a statement credit.
- Student Credit Card. This card is usually for young people with little to no credit history requirement. Most students’ cards don’t charge an annual fee and offer many bonuses for good points.
- Business Credit Card. Works similar to a personal credit card and allows you to borrow money to meet urgent business needs such as payroll, purchasing equipment, and so on. You can also earn rewards on all your business spending.
3. Examine Your Credit Score
Know your credit score to decide which card is best for you. A credit score is a number between 300 and 850 that reveals how you use credit. The higher your credit score, the more your chances of getting a loan approval—at a lower interest rates and favorable repayment terms.
Check your credit score to see if it is excellent, average, or poor. Your creditworthiness determines the kind of credit card you can get, a poor or fair credit score can limit the number of cards you qualify for.
Use Discover Credit Scorecard and CreditWise from Capital one, among others, to know your credit score.
To boost your credit score, pay outstanding bills quickly, use different types of credit and limit credit usage.
4. Locate The Best Credit Card Offer
To get the credit card suitable for you, compare various credit cards available and choose the best for you. Begin by checking out the components of the best credit card. Observe components like balance transfer, no annual fees, and travel.
Also, compare the rewards, prerequisites, and credit score requirements to know which card is best for your needs. If you love to earn on your credit card, then pay attention to the credit card that offers the best rewards.
5. Read The Fine Print
To get the best credit card, pay attention to every detail before you apply. Don’t jump at any credit card you like or the available one. Observe critically and analyze each requirement. Understand the terms and conditions of each of the available credit cards before you submit your application.
Also, assess the annual fees and interest rates for purchases, cash advances, and penalties, balance transfers, and application fees. Note the fee for foreign transactions and late payments.
>>>GET SMARTER: How to Get a Credit Card With Poor Credit
6. Apply For The Best Credit Card of Your Choice
To get a suitable credit card after careful consideration, submit your application. Apply online, over the phone, via your mobile, or through snail mail with a paper application. Follow the application procedures, and provide your name, date of birth, address, annual income, employment status, and social security number.
After submitting your online application, for example, wait to receive a quick response of an approved application within 60 seconds. Phone and paper application take generally longer time to process and approve.
Expect your card within two weeks of application. Although, some card issuers give an immediate card number to use for the online transaction.
Recap
To get a credit card, determine why you need a credit card, know the types of credit cards available, examine your credit score, locate the best credit card offer available, read the fine print and move on to apply for the best credit card of your choice.
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