If
you are at least 18 years old
and have a regular source of income
or savings, you're on your way
to qualifying for a credit card.
But you'll still have to demonstrate
that you are a good customer.
The proof is in your credit history,
which lists the amount of credit
you have received and how faithfully
you've paid it back. If you’ve
financed a car loan or other purchase,
you probably have a record at
a credit reporting bureau. This
credit history shows how responsible
you’ve been in paying your bills
and helps the credit card issuer
decide how much credit to extend.
Before
you submit a
credit
card application,
get a copy of your credit history
to make sure it's correct. Contact
a credit bureau listed in the
Yellow Pages under "credit rating
and reporting." To order a copy
of your credit report, contact Equifax,
Experian,
and TransUnion.
Today's
consumers are presented with a
wide array of credit card choices—cards
with low annual percentage rates,
cards with no annual fees, rebate
cards, gold cards, platinum cards,
etc. So, how do you choose one?
Before
selecting a card, be sure you
know which credit terms and conditions
apply to the account. Do you expect
to pay your bills in full each
month, or do you plan to pay off
your purchases over time?
Consider the annual fee, finance
charges, balance computation
method, and whether or not there
is a grace period for purchases.
See our Credit
Card Tips section for more
information on how to choose
a credit card and other important
credit card terms.
Because
credit cards make it easy to purchase
things now and pay later, it's
easy to lose track of how much
you've spent. Make sure you pay
all of your bills on time and
only get the credit cards you
need—don't get a card just because
the issuer is giving away a cool
gift.
To
establish and maintain good credit,
it is important to pay at least
the minimum amount due every month
and to pay on time. Allow five
to seven business days for payments
made by mail. Use your credit
card wisely as a beneficial financial
tool. Do not fall into the trap
of charging every single little
thing you come across just because
you can. This will leave you with
a huge debt you can't afford.
There
are easy ways to keep your spending
on track. Perhaps the easiest
is to record your credit card
purchases in a notebook. There
are also a wide variety of software
programs, such as Quicken®, available
to help you manage your finances.
Lastly,
take advantage of services your
financial institution offers.
Through online banking, for instance,
you can see your account activity
on a daily basis and even arrange
to make electronic payments.
