At Smart Money Station, we want to help you make wise credit card decisions based on hard facts and knowledge of the terms. At the same time, we don't want to make any assumptions about your current credit knowledge. We're broken the process down into easy-to-follow steps, and you can skip ahead at any time.
CHECK YOUR CREDIT REPORT.
This step is important, especially if you are concerned that you have a poor credit rating or credit score and might not qualify for a credit card. Simply applying for credit will appear on your credit report, so you'll want to know that you'll qualify before actually applying for a credit card. This way you'll know ahead of time that you meet their credit score minimum requirements.
Even if you think you have a good credit score, it’s always a good idea to check both your credit report and credit score before applying for any new credit. You can detect any problems or errors on your credit report before being denied credit due to an error, which will also affect your credit score. If you have bad credit and are trying to improve or repair your credit rating and credit score, you'll want to be careful with your payments and closely monitor your credit report and score regularly.
To learn how to check your credit report and credit score, click here for instructions. To apply for your credit report and credit score now, click here.
Learning what credit card is best for you starts with analyzing your current credit position and how you plan on using the card. Different credit cards serve different purposes. There is no sense applying for a card without knowing first that it’ll suit your needs since simply applying can affect your credit score. There are so many credit card offers out today, and it's easy to be convinced to apply for a credit card simply because the offer looks good. By learning a few things about credit cards and shopping around a little, you'll save time and money in the long run.
Let's start with where you are today. What is it you want to do?
Replace an existing card with a new, lower interest rate, lower annual fee credit card?
Access credit as a student while going to school?
KNOW THE TERMS.
The terms and conditions are other factors that may affect your choice of credit cards. It’s very important to understand them because they can affect things like the amount of interest and/or fees that you pay.
Interest Rate: Do you plan to pay off your balance every month? If not, make sure you know the interest rate you'll be paying. Often there are different rates for balance transfers, purchases and cash advances.
Introductory Period: Are you transferring a balance from an existing card to a lower interest-rate card? Balance transfers usually get the “introductory” low interest rate for a limited time. At the end of the introductory period the interest rate will increase substantially and sometimes the original balance transferred is subject to interest if not paid off.
Rewards: Do you like to travel? Consider cards with rewards that can be redeemed for flights or hotels. There are many other types of reward cards.
Annual Fee: Is there an annual fee? You want to know how much it will be and when it will be charged to the account so you can prepare for a higher balance that month. You also want to avoid fees whenever you can, however, some types of cards will come with an annual fee.
Grace Period: Is there an interest-free period as long as you pay your balance in full? You can be getting short-term interest free loans every month by paying your balance in full and on time!
Other Fees: What other fees can you expect? Often there is a fee for balance transfers and there can be fess in addition to interest for missed/late payments.
SELECT A CREDIT CARD CATEGORY.
To help narrow your search, we have sorted all of the credit cards currently available into ten categories. Choose one from below that best suits your needs, and take your time to review the terms of each.
