Credit Card Applications

Written by Kathleen Gagne
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Lots of things are getting easier to do today on the Internet. That includes gaining access to credit cards. Literally hundreds of credit card companies and thousands of credit cards are available online. In addition, if you have at least one credit card, you are probably getting dozens of credit card offers every single week right in your mailbox.

One of the tricks to maintaining the right level of credit is to be selective about which credit card applications you fill out both online and/or through the mail. That means reading the application thoroughly before you decide to fill it out. There are a lot of reasons to be selective, the most important of which is the effect that a lot of credit applications will have on your credit report, and second is the cost of the credit itself.

Think about it carefully. If you submit one request for credit a year versus submitting a dozen in six months, you will usually have a better credit rating. If you are constantly asking for credit and getting refused, each subsequent request will be colored by the fact that you were previously turned down, and your credit score will suffer. If you have poor credit, it's important to be sure to apply only for that card or cards for which you have a good chance of getting approval.

The Cost of Credit

The other major factor you should consider when applying for a credit card is the cost of the credit. This is critical if you have bad credit. Companies will offer you up to $300 or $400 in credit but may charge you as much as $200 per year to get it. Be careful to look at the terms of any credit card offer you are considering. Unless you are desperate to repair your credit, it makes no sense to pay as much as half of the credit amount each year just to be able to use a credit card once in a while. Reestablishing good credit is definitely a positive move, but you must be careful about submitting too many credit card applications.

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