Why Should I Apply for a Credit Card Online?
Applying for a credit card is an activity that many people do from time to time. In some cases, it might be necessary in order to establish credit if you have little or no credit history. In other cases, it could simply be a convenient way of earning rewards or cashback on purchases financially feasible for you. Whatever the reason may be, applying for a credit card online can be a simple and rewarding transaction.
In addition to the fact that applying for a credit card online is often quick, easy and hassle-free, you also have access to many great features on many websites like this one designed just for this purpose.
Generally, these websites provide a comparison among several different credit card options and their respective interest rates, fees and rewards programs. This can be especially helpful when trying to decide which type of credit card would be the best deal for you.
How To Choose The Right Credit Card
We all need to make purchases online and offline, but our monthly budget may not always allow for that. There are countless credit cards in the market; each with its own unique features and benefits. Here's how you can choose the right card for you:
1. Determine Your Needs
Before applying for a credit card, it is important to first determine the kind of credit card you would need. How much do you spend each month? What specific products or services are you planning to buy in the near future?
These questions will help you identify which type of purchases your new credit card should be able to facilitate. For example, if you love to travel, a travel-related rewards credit card may be the best fit.
2. Know Your Spending Habits
When does your paycheck come in? How long do you usually take to pay off your monthly dues? These questions will help you understand whether you will benefit more from a credit card with an introductory 0% APR or one offering rewards for each dollar spent.
If you are able to pay your monthly dues on time, opt for a card with an introductory 0% APR offer. That way, you can enjoy your purchase without having to worry about interest charges until the promotional period is over. If you need a longer period of time to repay your bills, go for a credit card offering cashback or reward points with each dollar spent.
3. Research Your Options
The Internet is a good place to start as you conduct research on the various kinds of credit cards offered in the market. You can compare interest rates, annual fees, rewards types and redemption policies by checking out different credit card companies online. The more information you have, the better equipped you will be to choose the right credit card for you.
Types of Credit Cards
Consumers use different types of credit cards available in the market today. Some people use them as a form of payment because it is more convenient and others use their credit cards to rebuild or improve their credit score or history.
Low Interest Credit Cards
Low rate cards offer you low-interest rates on any balance transfers and purchases. However, if you miss a payment for any reason, the APR will skyrocket to as high as 30%. These types of credit cards are often used by those who may have had defaulted in the past and need time to pay off existing debts before making larger purchases. The annual fees associated with these types of cards tend to be between $15 and $40.
Rewards Credit Cards
Reward credit cards offer various types of cashback or frequent flier miles for purchases made on the card. You can choose from different types of rewards such as travel, merchandise and general cash. The downside however is that you pay a higher interest rate on any balance transfers and purchases than regular low rates cards. Also note, some reward credit cards only allow you to redeem your points in certain locations at designated times which may include holidays or peak seasons.
For example, an airline might only allow you to use your points during the spring break season over a weekend when they know demand will be high. The annual fees associated with these credit cards are often around $50 per year.
Balance Transfer Credit Cards
With a balance transfer credit card, you can transfer your existing debts from another bank or company at a low rate of interest. When signing up for the card, you will have to visit the new provider's main office either in person or over the phone. Before applying for a balance transfer credit card, make sure to read all terms and conditions on any new agreement as there may be hidden clauses that could cost you money. The annual fees associated with these types of cards are often around $40 per year.
Business Credit Cards
With business credit cards, normally only major corporations can apply for them as they need to deal with large volumes of purchases and transactions each month. These companies include businesses such as hotels, department stores and even gas stations. The annual fees of these credit cards are often around $40 per year. v) Secured Credit Cards: A secured credit card is a great way to rebuild your credit history after a bankruptcy, foreclosure or debt settlement has occurred.
In order to get one of these cards, you need to deposit a certain amount of money in an account with the bank which will be used as collateral if you miss any payments. Once you have shown that you can pay off all your debts on time for 6 months, the bank will release your money back into your account and extend your line of credit on the credit card limit that was originally deposited.
Student Credit Cards
These types of cards are usually offered to college students who have a part-time job and can prove they make enough money to pay for the monthly credit card bill. The annual fee of these cards is often around $20 per year with a low or no interest rate associated with it.
Platinum Credit Cards
These types of cards are the most sought after as you will receive special privileges such as upgrades on flights, rooms at hotels and special offers from retailers that others do not get. In addition, you also enjoy less scrutiny from financial institutions when trying to obtain loans or mortgages which is why many business owners use this type of credit card instead of just cash or cheques. The downside, however, especially if you are new at managing your finances is that you can easily spend more money than you can afford. The annual fees associated with these credit cards are often around $50 per year.
Store Credit Cards
These types of cards are only offered by a specific retailer which you must shop at often to use the card. For example, if you want to buy a computer from Best Buy using their store credit card, you need to make monthly payments on the item before you will be able to apply for financing on a home or car. The annual fees associated with these types of cards are often around $20 per year and offer special discounts and upgrades that apply exclusively to people who have this type of credit card.
Travel Credit Cards
These types of cards usually offer exclusive promotions that give consumers special rates when traveling to specific countries or regions in the world. Since most people who own one of these types of credit cards do so because they enjoy traveling, many will take advantage of this feature by using their card whenever they go on vacation abroad. The annual fees associated with these types of credit cards are often around $90 per year.
Premium Travel Credit Cards
These types of cards are only given to consumers who have excellent credit which is usually reflected by a FICO score that is about 720 or higher. Since the annual fees associated with these types of cards are often very high, many owners prefer to use these cards whenever they travel abroad so that they can accumulate reward points and cash in on the expensive annual fee later when not traveling.
Corporate Credit Cards
These types of cards are usually offered to employees for business purposes such as entertaining clients and paying project expenses. The most common types of rewards earned through using this type of credit card are free flights and hotel stays while traveling on company business. In addition, you might also be able to add special travel insurance coverage on the card if you want which reduces your overall expenditures when going abroad. The annual fees of these credit cards are often around $75 per year with a zero-interest charge during the first 6 months.
Classic Credit Cards
These types of cards have a fee associated with them but do not provide consumers with any additional benefits or rewards unless they use their card to make purchases at certain retailers or restaurants that have an agreement with the credit card provider. The annual fees associated with this type of credit card is usually around $25 per year and many people own one because it offers great flexibility when making purchases in foreign countries.
Prepaid Credit Cards
These types of cards can be used for making online purchases, cash withdrawals at ATMs or wherever Visa is accepted. Since these cards are not linked to a specific bank account, you can only spend the money that has been loaded onto this card by purchasing other types of credit cards. The annual fee associated with these types of cards are usually around $15 per year and it also comes with an activation fee which must be paid before using the card.
Foreign Exchange Credit Cards
These types of cards come with features that allow consumers to make purchases in multiple currencies without having to pay any exchange fees when converting between dollars and euros. In addition, many foreign exchange credit cards also have special apps on their mobile devices so that you can use them for your daily expenses while traveling abroad. The annual fee of this type of credit card is $75 per year with no interest charges during the first 6 months and unlimited access to ATMs worldwide.
Secured Credit Cards
These types of cards are great for individuals who have bad credit records and want to rebuild their FICO score over time by making regular payments towards their outstanding balances each month. Since this type of card requires you to place some money in a secure account before using it, most people prefer secured credit cards because they know how much money they can spend while traveling abroad without getting into serious debts due to additional fees or interests on their accounts every month. Most secured credit cards also come with low fees so that consumers can enjoy purchasing power without incurring any additional charges on their accounts when they are abroad.
Benefits of Having a Credit Card
There are many benefits to owning a credit card. Some people may argue that you should not get one, because it could lead to bankruptcy or an overwhelming amount of debt. However, if you plan on using your credit card wisely, then there are several benefits that you will enjoy.
1) Building Credit
One of the most important benefits that a credit card provides is the ability to build your credit. Many people make the mistake of thinking that if they don't use their cards, then their credit scores will not go up. This is true but there's even more to it than that. When you use your card on a regular basis and pay off the balance each month, it shows your credit report that you are responsible with your money.
2) Protection
You probably already know that you will be protected from identity theft if you use a credit card and that you can dispute fraudulent charges. However, your credit card can actually protect you from other things as well. If for some reason your items are lost or stolen while they are on an airplane or bus, then your credit card may be able to refund your losses.
You will want to read through the fine print of your contract to make sure you are covered in all the right ways. Be aware that some credit cards may not offer this kind of protection.
3) Rewards
There are several different kinds of rewards available when you choose a credit card with rewards. This is another benefit that may not be available on all cards. However, if you are looking for a card that will allow you to earn cashback, free hotel stays, or airline miles then this is the way to go. You can quickly rack up some serious savings on things you would have bought anyway.
4) Improving Credit
If you already have bad credit and want to try and improve it by building your credit, then you should apply for a credit card with a low-interest rate. You will not be approved for some of the cards that offer great rewards simply because your bad credit score is holding you back.
So, in order to get started on improving your credit history and scores, you will want to apply for a card with a low-interest rate and make your payments on time every month.
Conclusion
Having a credit card can open up doors for you to save money, get rewards, improve your credit score and much more. You just have to make sure that you are using your cards responsibly so that you can enjoy the benefits.
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