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Applying for a credit card

Although you are reading an article on credit cards, you may or may not be currently thinking of applying for one. If you have a good reason, and know what you are doing, then a credit card can be extremely useful. However, if you don't have the best of credit histories, you do have to keep an eye out for card sharks who will try to take advantage of you. If you don't pay close attention and get the best deal available, you might end up paying as much as 23% APR, on a card with only a $300 limit! Yes, this is a real card, available from a bank in North Dakota.

Credit Cards for Good Credit

If you have excellent credit, then you can get pretty well any card. You'll even find you get offers in the mail, and don't even need to try to find them. Although you probably should anyway, as you know those mail cards are rarely worth getting.

The good credit credit card can be a special rewards card. For instance, many grocery stores have worked with local banks to provide a Visa card for customers that doubles as a rewards card and as a discount card as well. Sometimes there are great offers that can only be had by these card holders, and the also accumulate credits towards discounted grocery bills. Some stores even send their customers coupons for every $1,000 they spend.

Good credit can also be a help with other things, for example a good credit can get you discounts on insurance, or a no annual fee credit card, or otherwise reward you for building up and maintaining a good credit score.

Bad Credit Credit Card

Although your credit might be quite bad at the moment, there are still much better ways to build it back up then by going with something like the abysmal card mentioned above. If you go to your bank, they'll probably be able to set you up with a secured credit card, which will at least give you something. They'll ask for a security deposit, usually at least 25% of the limit, but possibly as high as all of it, and have a low limit to boot. Still, this will give you the chance to re-establish your good credit score, at which point your bank will most likely be willing to remove the restrictions.

You will still need to take care, of course. With good credit or bad, it is unlikely that you really want to go with one of the cards offered to you through the mail. These are usually very bad deals, and if you want a credit card you're much better off going to your credit union or bank and getting one there. You may even find that they let you arrange for the card online.

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Author Mammon is an experienced banker, and an expert on building good credit. Click here to see his web site on bad credit credit cards. Don't reprint this article. Instead, reprint a free unique content version of this same article.

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