Although you are reading an article on credit cards, you may or may not be currently thinking of applying for one. If you have a good reason, and know what you are doing, then a credit card can be extremely useful. However, if you don't have the best of credit histories, you do have to keep an eye out for card sharks who will try to take advantage of you. If you don't pay close attention and get the best deal available, you might end up paying as much as 23% APR, on a card with only a $300 limit! Yes, this is a real card, available from a bank in North Dakota.

If you have good credit

Just about any card can be owned by someone with stellar credit and a good income. Often someone with good credit gets offers in the mail and doesn't even have to go out and find a good one. However, the ones that come in the mail are probably not the kind this person wants anyway.

In fact, the best credit card can even be something usual, for example a rewards card from a grocery store. A surprisingly large number of grocery stores have partnered with a local bank to provide rewards cards that double as visa cards, and as a discount card as well. A few stores will also send customers coupons when they spend a certain amount.

If you have good credit, you'll also have an advantage in other circumstances as well. For instance, insurance companies are more likely to give you discounts, and you can get credit cards with lower annual fees- or even with none. This is all to reward you for keeping up a good credit score, which is not that hard to do.

With Bad Credit

Just because you have bad credit doesn't mean you should suffer offers like the one mentioned in the first paragraph. Often the best thing for you to do is apply at your bank for a secured credit card. This card will give you a low limit and require a security deposit from 25% to 100% of your credit limit, but will also give you an opportunity to re-establish your good credit. Once you have done that, often the banks will extend you more credit and remove the restrictions.

You will still need to take care, of course. With good credit or bad, it is unlikely that you really want to go with one of the cards offered to you through the mail. These are usually very bad deals, and if you want a credit card you're much better off going to your credit union or bank and getting one there. You may even find that they let you arrange for the card online.