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[C1195]Credit Card Applications In

by Bryan Dufresno, Bry

Comparing credit card offers can be a nightmare task if you are unfamiliar with all of the options and fine print that goes with each credit card application. Typically, all card offers now have some form of extra or bonus to entice you to select their card. What they don't tell you up front is that many of these "bonuses" also contain hidden conditions that can get you into hot water if you are not careful during the selection process.

Do you plan on carrying a balance? - Generally cards that offer reward incentives carry a higher APR, if you don't plan on carrying a balance then this does not affect you. Also many of the rewards programs have restrictions on them when you miss a payment or when your account is not in good standing.

Do you like to save a little on your retail purchases by getting cash back from the merchant? Do you have a favorite hotel you always use when doing business travel? You need to ask yourself what you will be using the credit card for first and then select the offer to match your needs, not the other way around.

Will you be replacing your current card or adding a new one to your collection? A typical feature of most credit card offers is the ability to transfer your old card's balance to the new one. Some cards will allow you to transfer the balance for free and carry it at a 0% interest rate for a introductory period of time. Some will even allow you to carry the balance interest free until you completely pay off the balance - a handy feature especially if you are carrying a large balance on another card.

Reward Programs

There are an array of reward programs to choose from however there are three main categories, miles, points and rebates.

Miles - You earn Miles for airline ticket purchases or other predetermined purchases

These cards are great if you are a person who does a lot of air travel and already have a favorite airline chosen. But beware, cards in this category typically have a large annual fee associated with them reducing the benefits you receive from the card unless you are someone who uses the card often.

If you are a person who uses your credit card a lot and pay your credit card bill in full each month then this type of credit card may be worth applying for.

Points - earn credit for retail purchases by using your card at selected merchants

Retail points reward programs may be the most popular and widespread of the reward programs available. Seemingly every retail outlet you can think of has their own credit card offer with a points system which allows you to save money on purchases by redeeming the points for goods at the retail outlet.

Retail credit card offers are tailor made for people who do a lot of shopping at a particular store. If you have a store you frequently shop at, make sure to see if they have one of these credit card offers which can help you save money when you shop there. Just be sure to pay your balance each month or you will lose the value of your points because you will be paying interest on this balance.

Cashback - get money back in cash form for using your credit card

Earning cash back on your purchases sounds like a great idea but can get you in trouble if you abuse the card. Make sure to pay that credit card bill each month or the cash back you have earned will simply be used to pay off your balance, not what you intended when you signed up for this type of offer.

Cash back cards can also be tied to a service or merchant such as gas cards, hotel cards, auto rebate cards and many others.

Keep this in mind. All of the rewards, points, miles and introductory rates are only as good as your credit habits. Missed payments often void your introductory rates and many times will negate the rewards you have earned. Always read the issuers detailed terms and conditions before applying for a card so there will not be any surprises

It can be disheartening when you apply for a credit card and get turned down. However, in the vast majority of cases, it really is not anything that you need to worry about. While there are some people out there who would be approved for virtually everything they could think of applying for, for the vast majority of us, applying for a credit card can take a little time and some trial and error.

Credit card providers generally have pretty strict criteria that they are looking for from applicants when they launch a new credit card. They will be targeting the card at a specific segment of the market and will have a credit score range that they are seeking from applicants. If you do not fall within this score range, you will not be in their target range and will be refused the card. But this does not mean that you will not be successful when you apply for another credit card that is targeting your section of the market. And it is important not to take the rejection to heart.

Determining Your Credit Score

You may feel that you are trustworthy and always pay your bills and that you should not be turned down for credit, but remember that credit approval is no longer a personal exercise but is by and large automated and subject to computer credit checks and the like. A computer will look at your credit score and give a yes or no answer, and no individual attention will be paid personally to your application at all. It is a necessary way of running the system for lenders who have literally thousands of clients and applications to manage as efficiently as possible.

The Next Step After Rejection

If you are refused for credit, then apply to a couple more companies. You should try not to rush the process and apply for one card at a time. You usually receive your answer within a couple of days. The reason for this is that if you apply for too much credit too quickly, it will show up on your credit report and may cause lenders to turn you down. So be patient and if possible, ask the lender why they have rejected you.

Patience is a Virtue in Credit Card Applications Too

The chances are you are simply applying for the wrong type of card, for example, if you are a student, you will really only be approved by companies that make a point of providing credit cards to students and most other will reject you as a matter of course. So by a little patience, and taking the time to make your application to a credit card company that targets the segment of the market that you fit into, you should be able to get your hands on a credit card before too long.

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Both Bryan Dufresno & Joseph Kenny - are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.

Bryan Dufresno has sinced written about articles on various topics from Apply for Credit Card. Bryan is a financial analyst and can assist you with choosing the right online. Browse for. Bryan Dufresno's top article generates over 480 views. to your Favourites.

Joseph Kenny - has sinced written about articles on various topics from . Joseph Kenny is the webmaster of the UK credit card comparison site , where you can find a selection of. Joseph Kenny -'s top article . to your Favourites.