How to Apply for a First Time Credit Card
- 1). Review your credit report and score. Your credit report and score will determine whether or not you qualify for credit, and if so, how much credit you qualify for and the interest rate you will probably be charged on any credit you use.
- 2). Research what credit cards are available to someone with your credit score and credit history. Bankrate.com lets you compare credit cards and learn what kind of interest rate you can expect with your particular credit score (see Resources below). You should also compare annual fees, late fees, the interest rate you can expect to be charged after the introductory rate has expired, and any available perks, such as airline miles, reward points or cash back.
- 3). Apply for your first time credit card. You can apply online if you feel confident in the security of the site. In many cases, approval is instant. You can also mail a written credit card application; places to get applications include your current bank or credit union, magazines and websites. Be aware that your application for credit will result in a credit report inquiry. Excessive credit report inquiries can negatively impact your score. If you are shopping around, it is best to complete all of your applications within a 7 to 10 day window because all similar inquiries within a 2-week period are counted as one, which will have little impact on your score.
- 4). Watch for your new credit card. Your credit card will arrive in an unmarked envelope within a few weeks of your approval. Be sure that your name is correct and read all related materials carefully, noting your particular billing cycle. If there are terms you don't agree with, do not use the card, because use of the card constitutes agreement. Keep your cardholder agreements in a safe place as you may need to refer to them if you ever have questions or a dispute with your account. You should also add the credit card account information to your online banking profile. Doing this will make it easy and convenient to pay on time and avoid late fees and derogatory credit reporting.
- 5). Analyze any credit card application that is denied. If your application is denied, you should receive a letter of explanation in the mail. You are also entitled to a free copy of the credit report used to make the decision. Review this report and correct any information that is inaccurate. Order another report within 90 days to be sure that it has been corrected. If your application is denied you might also consider getting a secured card, which are a good way to build credit, or getting the help of a cosigner, which can increase your chances of getting approved.
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