Easy in, Painful out . . .Apply for a Credit Card

A Credit Article Contributed by Cathy Wilson

They Send 'em Free in the Mail for Heaven's Sake, So You Almost Don't Even Need to Apply for a Credit Card.

Of course you really do need to apply for that credit card, but if you have a decent credit history, it's just a matter of signing on the dotted line.

Truth is, those credit companies are rabid for your business, because your high-interest payments are what keep them IN business.

It's probably easiest to get a credit card from a company issuing their own card, such as a department store or an oil company, because it encourages you to buy their products.

There are two types of cards-credit cards and charge cards. Credit cards such as Visa and MasterCard require you to pay a monthly minimum on their purchases with an interest charge on the unpaid balance. Charge cards, such as American Express, have you pay for all purchases at the end of the billing period. It is easier to apply for and get a credit card than it is to get a charge card, because you need to have demonstrated that you will pay your bills.

Choose before You Apply for a Credit Card

There are lots of places, both online and offline, where you can read about credit-card choices and even get ratings on the various companies, but since rates and plans change very often, you should call the companies you're interested in to confirm the information and to see if they offer other plans that might be better for you. Then you can most intelligently apply for your credit card. If you want some unbiased opinions in your research, you can contact the Federal Reserve Board or the non-profit consumer credit organization, the U.S. Citizens for Fair Credit Card Terms.

List the Best First and Then the Rest As You Get Ready to Apply for Your Credit Card

Make a list of the best of the best cards that you've found, noting down particular features that fit your financial needs. Then rank the cards according to how you plan to use the card and pay your bill. Pay special attention to the interest rate; you are seeking a low rate, but not necessarily the lowest because, depending on your needs and payment history, you might get more from a card that offers cash rebates, discounts or frequent-flier miles.

See if you can join a credit union. Credit unions are non-profit, and they generally charge lower interest rates. Credit unions are anxious to expand their share of the market in credit card loans. You'll need to become a member and open at least a joint share account, if not a savings account, to take advantage of their offerings.

Once you've made a list of possible cards, before you make a decision, see if you can negotiate with a company you've already got an account with to lower your interest rate. Believe us, they'll be glad to retain your business and may do what it takes to accommodate you. You may not even need to apply for another credit card!