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August 19, 2008
Applying for a Credit Card - What you might have missed
What you don't know when you apply for a credit card may hurt you....
Here we are going to demystify the jargon associated with online credit card applications so that you can apply for a credit card that fits your needs.
First you will see there are several categories and sub-categories and even that can be broken down further into even more types of credit card offers. Yes, it can get a bit confusing. Perhaps confusing is the wrong phrase, it's more like information overload when you set out to apply online for a credit card offer.
The 2 top level categories you must focus on is where your credit score is. If you have bad credit then only apply for card offers that are designed for your credit situation otherwise your application will be rejected and your credit score will be further impacted making it more difficult to qualify for a credit card.
Now if you have good to excellent credit then you should apply for a credit card that offers added benefits and perks.
For those with Poor to Fair Credit
My advice when I am helping others with financial planning issues to apply for a card designed specifically for those with bad credit and uses that as a tool to restore your credit rating.
Secured Credit Cards
When you have bad credit the best option for you is a secured credit card. The way a secured card offers works is this simple:Let's say you want a $2000 line of credit, the issuing card company will require you to place $2000 in a bank account as a security deposit to eliminate the risk to the bank.
You don't have access to the $2000 security deposit and it is not used to pay your balance owing each month. A secured credit card works exactly like a regular credit card so you still receive a monthly bill that you must pay at least the minimum balance.
One of the best secured credit card offers on the market today is the Bank of America Secured Visa® Card
Get more details and apply online for the Bank of America Secured Visa® Card
Bank of America Secured Visa® Card - Click here to apply now.
Debit Cards
Prepaid debit cards are very similar to secured credit cards, the difference is that with a prepaid debit card you fund the card and the money you place on your credit card is debited until there are no funds left. There is no security deposit that's held, you apply the cash to the card then use that cash until it's spent. Once the funds have been depleted you need to fund the card again.
For those with Good to Excellent Credit
Balance Transfer Credit Cards
If you currently carry a balance on your credit card then a balance transfer card is the perfect tool to save money right now. You can get 0% introductory rates anywhere from 6 months up to 15 months.
It is important to note that if you are late or miss a payment that the 0% APR intro rate will usually be revoked and regular rates will apply. You should use a balance transfer credit card as a way to pay off your credit card debt, but you must be discipline and make sure those bills get paid on time.
Rewards Credit Cards
Yes, you really can earn rewards you credit card purchases and with our exclusive online shopping discount section there are even more savings to be had so you need to further drill down into the credit card rewards category to get the best deal for yourself
To get a list of the credit card reward programs available please visit our application section of the site to find the best credit card rewards for your needs.
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