Things You'll Need:
- internet
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Step 1
Before you apply for a credit card, you want to make sure it is one you will likely be approved for. You should check your credit score (see my article how to track your credit score.) Creditkarma.com and freecreditreport.com are good sites to find this information out. Creditkarma.com will compare credit cards in the various categories. Find out if you have poor, fair, good or excellent credit. If you have good credit, you do not want to apply for a card that only accepts people with excellent credit. Conversely, you don't want to pick a credit card meant for people with fair credit if you have good credit.
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Step 2
Figure out what you will use the credit card for. Are you using it to build credit? Are you using it to get rewards? Be honest. Are you going to pay it every month and keep a zero balance? If you are going to carry a balance, a low interest rate is very important. You also want to look at the terms. Make sure it is not an introductory offer that will run out. Look at the fees. You may get a lower APR with a very high annual fee. The annual fee may make a card with a higher APR and no fees a better fit for you.
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Step 3
If you are going to carry a balance a low APR with no fees is ideal. If you are going to pay the balance every time. (I would suggest going online and paying before your billing cycle ends.) APR isn't as big of a deal because you won't have a balance to charge. In this case, it may be much better to get a card that will offer rewards you will use. I routinely cash in my reward points for Target gift cards. It really doesn't take me long to accumulate points because I pay for everything with that card and pay it off every two weeks. If you never travel, don't pick a card that only gives you airline miles. When you do cash in your points, look at the value. I used to have cash applied to my card in exchange for points. I realized by getting gift cards instead of cash, I get a lot more dollar value per point.
