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1.) Your Credit History: This is the most
important factor in determining whether or not you
will receive a credit card. If you have excellent
credit, it is likely you will be approved for
any credit card you apply for. People with good
credit are normally accepted as well. But if your
credit is 'so-so', or poor, you need to be more
careful when selecting a card.
| Good to Excellent Credit
As a rule of thumb, Platinum and Titanium
cards are normally reserved for people with
excellent credit. If you have good credit,
you may be able to qualify for these types
of offers as well, but you are more likely
to be approved for a Gold or Classic
card. With increasing levels of credit, individuals
receive increased benefits such as higher
spending limits and lower interest rates.
Poor Credit or No
Credit
For individuals with poor credit, or no credit,
several types of credit cards are available.
These cards are an effective way to establish
and improve your credit.
Secured
credit cards are available to most
individuals. They require a security deposit
(normally between $150 and $300) to receive
approval. Unsecured
cards, on the other hand, do not require
a security deposit. Both normally have higher
rates and additional fees as compared to cards
for people with good credit.
Prepaid
cards are also available as an alternative
for those with poor credit. They operate on
a 'pay as you go' basis and boast Guaranteed
Approval!
* Tip: Apply for an unsecured credit
card first since there are no security deposits
and won't have to fund it with your own money!
If you aren't approved, then you might consider
a secured or prepaid card instead.
How is your credit? Please visit our credit
report section for more information on
credit reports and find out how to get a *
FREE copy of your credit report online.
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2.) Your Spending Habits: When choosing
a credit card, consider how your will use the card.
Will you pay off the balance in full each month,
or will you carry a balance?
If you carry a balance, you'll probably be more
interested in a low
APR credit card or a 0%
intro APR deal. But if you always pay your bill
in full each month, you might be more interested
in a reward credit card that may have a higher interest
rate, but will allow you to earn bonuses for using
your card.
3.) Your Specific Interests: Do you do significant
amounts of traveling, use a specific brand/service,
or shop at a specific chain of retail stores?
Many credit card issuers will allow you to earn
rewards for your devoted service.
Travelers: If you are a frequent traveler,
many companies allow you to earn special bonuses.
Airline credit cards
allow individuals to earn free air travel, hotel
stays, rental cars and more! Other offers allow
you to earn free
gasoline, or credit towards an automobile.
Shoppers: If you are a frequent shopper,
or prefer a certain retail store or brand of products,
many companies allow you to earn rewards for everyday
purchases. Cash back
credit cards allow individuals to earn cash
back, rebates and other rewards. In some cases,
they offer increased incentives for purchases on
certain brands or products.
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