What you need to know before you apply for a credit card online

I’m sure you’d made some research before you applied for a mortgage – like what is your credit score and how it affects the APR. When you apply for credit cards online you should also not be light-minded. Though it seems that with a credit card you will not borrow sustainable sum of money every month, you total savings (or spending) can be huge on a period of time.

There are some things you should undertake before submitting credit card application.

Check your credit score. You can do it once a year free of charge. When you know your credit ranking you can apply for a card that matches it and you’ll have more chances to be approved. Though credit card issuers do not always publish their requirements, you can guess that with ranking over 650 you can get any credit card. But with a poor credit score you should apply only for secured card. If you pay all your bills on time, you have nothing to worry about, though occasional mistakes still can cause your failure.

Fix mistakes. Sometimes they appear in credit score reports due to clerical errors: misspelled names, wrong addresses and account numbers, lost checks and other unpleasant cases. But you can correct that mistakes and get your fair credit score. You can also find that some of your old credit card accounts are surprisingly still open. If these accounts have 0 credit limit, it’s better for you to close them. But if credit limit is positive you can keep accounts open by making a small purchase each month and then paying off the balance.

Choose the one. Don’t apply for many cards to get just one. Each credit card application negatively affects your credit score, chances to be denied grows, while available credit limit decreases. First apply for the best deal that meets your requirements and matches your credit score.

Reduce your credit card balance. If you already have a card and you carry balance that is more than one-third part of a credit limit, it decreases your chances to get another card. If the balance exceeds half, it leaves great negative impact on your ranking.

Avoid late payments. Always try to pay earlier, because when you pay at “pay due” date it can be too late. It takes couple days your payment to be received and processed. Late payment can not only cause late payment fee but also decrease your credit score.

Find best deals online. Not all credit cards are the same. Compare rates, fees and rewards that are offered by banks and credit unions. The best part is you can actually do it without leaving your house – most offers are available online, along with reviews and comparisons. When you apply for credit card online you can take your time to find the best deal and fill all forms without hurry.