Should I apply for a credit card and is there a benefit if I apply online for a credit card?
Applying for a credit card is one of the best things you can do to begin building a good credit history and that all important credit score. So, the easy answer is yes, you should apply for a credit card.
Even though a credit card is a small piece of plastic about three inches by two inches, credit cards are a big step forward for both personal credit management and purchasing. Don't be fooled by the small size of a credit card. The credit card application contains many terms and conditions and is not unlike purchasing a car.
Credit card accounts are a line of credit. Most have a limit based on your credit score and credit history. A credit card line of credit allows you to make small purchases on a regular basis, pay them off in a timely fashion and establish a good credit history without having to make a major purchase like a house, car of furniture.
Thirty-five percent of your credit score comes from how well you pay your bills. That, in itself, shows how important a credit card can be for you.
Before you apply for a credit card, you need to make some decisions about managing your credit card debt. Nearly everyone says they will pay their bill in full each month to avoid getting in over their head. The majority of people are successful, yet many others are not.
Life brings unexpected issues that affect personal finances. It could be a car accident or medical bills or getting laid off from a job. In some instances, this prevents people from paying their bills on time. In others, it causes people to use their credit card more, just to put food on the table. Make this a part of your overall financial planning.
We recommend that you know what your credit score is before applying for credit cards. Some credit cards are issued to people with excellent credit while others are issued to people with good, fair, limited or no credit. These categories are usually based on your credit score, and it would be both useless and frustrating to apply for a credit card you have no chance of being issued.
Next, we strongly recommend you have a credit management plan. The one we use kills two birds with one stone. We get all three of our credit scores and get monthly email reminders when to pay our credit card bills. It costs less than $50 per year and, in our opinion, is well worth the price. Click this link to find out more about Suze Orman's FICO® Kit Platinum.
Let's look at the second question. Should you apply for a credit card online? The answer, of course, is yes. Credit card terms and conditions change almost continually. (Just ask our webmaster. We keep him updating the site almost daily.)
Let's say you receive a credit card offer in the mail for XYZ Credit Card at 14.99% APR. Remember this: the credit card company decided to run a promotion. They obtained a mailing list from the credit reporting agencies. They designed and printed an offer. Then came the stuffing and mailing. In the meantime, people at the other end of the building decided to lower the APR to 9.99% for new applicants. That information goes live online almost instantly.
Every credit card listed on this site has a link to the latest online application. Applying for credit cards online also speeds up the process of application processing.
So, yes...you should apply for a credit card, and you should apply for a credit card online.
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